Social insurance fund viable until 2080, ministry says

Based on the latest actuarial study the sustainability of the Social Insurance fund is guaranteed over the longer term, the ministry of labour announced on Friday.

The statement appears to have been made in response to a characterisation of the pension scheme as a “time bomb” by presidential candidate Nikos Christodoulides.

“The pension system certainly represents a challenge, which the department is called upon to manage,” the ministry said, however, amendments made up until 2012 so far secure the scheme, and even until 2080, annual income covers annual expenditure, the ministry noted in its statement.

The ministry added that it is in consultation with the International Labour Office (ILO) and awaiting the findings of its study on pension system reforms.

The results of the study will be presented by the ILO before end of year, whereafter the pension reform plan will be prepared, the ministry statement concluded.