Cyprus to submit pension reform bill to parliament in September

Cyprus' Minister of Labour and Social Insurance, Marinos Mousiouttas, briefed representatives of the United States, the ruling Democratic Rally (DISY), and the Ecologists – Citizens' Cooperation on the upcoming pension‑reform legislation. He said the draft will be handed to parliamentary committees by 20 September, with a view to enact it on 1 January 2027.

The reform seeks to correct long‑standing distortions, address the growing share of retirees, and modernise the pension system. Key measures include raising minimum pensions, allowing workers to stay employed past age 65 with mandatory contributions until age 67 (resulting in higher benefits), and granting unemployment benefits to those over 63. The plan also aims to end further borrowing from the Social Insurance Fund and begin repayment of more than €12 billion already drawn.

Support was voiced by the Ecologists’ president, who called the change a “golden opportunity for rationalisation,” and by the Democratic Rally, which pledged backing while noting fiscal limits. U.S. officials stressed the need for broad consensus and realistic budgeting.