Pension reform being kicked over to new government

Labour Minister Kyriacos Koushos said on Friday the final decisions on the reform of the Cyprus pension system would be taken by the new government when it’s installed.

Presidential elections will be held next February with the new government assuming office on March 1.

Koushos met with Andre Picard, an actuary and chief technical advisor to the International Labour Organisation (ILO) to discuss the terms for a coming study to be carried out by the ILO on the Cyprus pension system, following a contract signed by Cyprus and the organisation.

Koushos said ILO would conclude its initial study by the end of the year and the study would be discussed with the social partners (trade unions and employers associations) with a view to drafting the guidelines by early 2023 that will be given to ILO which will complete its final study over the overhaul of the Cypriot pension system, established in 1980.

Replying to a question whether the final reform will be passed to the next government, Koushos said the reform will take time and should be discussed thoroughly, noting that apart from ILO study and the meetings with the social partners, an actuarial study will be undertaken while discussions should also take place with the ministry of finance over the state’s contribution and all parameters should be discussed in length.

“What’s important is that we have made the first step and, yes, we will further this reform, so that the coming government will undertake to continue and implement it,” Koushos said.

Koushos said the reform aims to “a fair and decent pension for all our fellow citizens.”

He noted that the reform aspires to address distortions observed in the current pension system, while responding to a question, Koushos said the reform will also assess whether it could integrate the basic pension and the supplementary pension into “a national minimum pension.”