Cyprus Labor Minister denies pension cuts in new reform plan

Cyprus Labor Minister Marinos Mosiouittas has denied reports that the upcoming pension reform includes cuts to existing pensions. Addressing rumors of a potential 5% reduction for the top 5% of high-earning pensioners, the Minister stated that such an option was discarded following opposition from social partners. Instead, he asserted that all pensioners will receive some form of increase, though the amounts may vary.

The government aims to submit the pension reform bill to Parliament during its first session after the summer break, expected around September 20. The draft is currently being finalized by technical experts following consultations with the Minister of Finance and the President.

However, Andreas Matsas, General Secretary of SEK, has challenged the feasibility of the September 20 deadline. He noted that social partners have not yet received the draft legislation, making substantive discussions at the upcoming Labor Advisory Council meeting on August 19 unlikely. Matsas emphasized that for the reform to gain consensus, it must be a comprehensive plan that includes the second pillar regarding Provident Funds.