The government has gone back to the drawing board to tweak its bills regarding multiple pensions given to certain state officials, MPs heard on Monday.
An official with the finance ministry said that, following feedback from MPs, the government is reworking the legislation it previously tabled to parliament. The amended bills will be going to the cabinet soon for approval.
The official said that the changes will ensure that currently serving state officials would not “get more [in pension benefits] than what they’re entitled to now”.
The government bill tabled foresees that future retiring high-ranking government officials would be paid a one-time lump sum payment instead of a new pension. But MPs voiced concern that this would end up creating another class of super-privileged state officials.
Meantime MPs have drafted about a dozen legislative proposals of their own, which they’re considering rolling up into just one or two.
During a previous session of the House finance committee, the attorney-general’s office had cautioned that any deprivation of pension benefits might run into constitutional issues. The AG’s office cited the 2014 case of Koutselini v the Republic of Cyprus, where the Supreme Court reiterated that a pension is tantamount to a person’s assets and cannot be taken away.
On Monday, state treasurer Andreas Antoniades came up with a suggestion to get around constitutional problems and ensure that all affected are treated the same. He proposed the creation of a single ‘special’ fund for the state officials concerned.
The AG’s office seemed to get on board with the idea, noting that a single fund with common rules would streamline the treatment of these state officials.
Diko’s Chrysis Pantelides said MPs would wait for the revised government bills, and take it from there.
Disy MP Demetris Demetriou stressed that legislators want to take this matter to the House plenum for a vote as soon as possible, and “let each person vote how they think is best”.
Last week, the state treasurer had informed parliamentarians that 98 individuals who have worked in the state sector receive more than one pension or a pension plus a salary. In a few cases, retired officials are on three pensions.
In 2011 parliament had passed a law prohibiting the payment of multiple pensions to any state official – other than those listed in a 1980 law.
Under the Pensions (Certain Officials of the Republic) Law of 1980, the pensions of the president, the House speaker, ministers, junior ministers, MPs and generally of state officials are suspended if they undertake any other function or office in the Republic.
But in 2014, the 2011 law was found to be unconstitutional, on the grounds that pensions are a person’s property. However, the 1980 law itself has not been voided and is still in force.
The issue regained traction in 2023 after reveals that Christodoulides and members of his cabinet continued receiving pensions for past service in the public sector while drawing a salary for their current jobs.
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