**Title: Disy Supports Pension Reform Without Increased Contributions or Retirement Age**
The Democratic Rally (Disy) party has expressed its support for the government's proposed pension reform, emphasizing the need for sustainable and adequate pensions without raising contributions or the retirement age. This position was articulated by Disy president Annita Demetriou following a meeting with Labour Minister Marinos Mousiouttas on Thursday.
The meeting was part of ongoing consultations between the government and parliamentary parties as the administration prepares to submit the pension reform bill to the House of Representatives. Minister Mousiouttas indicated that discussions would continue to refine the legislation before it is presented for parliamentary debate.
Demetriou highlighted Disy's commitment to contributing constructively to the reform process after being briefed on the core principles of the proposed changes. She underscored the importance of pensions as a critical issue impacting society as a whole.
Mousiouttas reassured that the government has thoroughly examined various aspects of the pension reform project, addressing questions and incorporating feedback from stakeholders. He stated that the aim of the reform is to enhance the quality of life for current retirees, workers, and future pensioners.
The proposed reform seeks to correct existing distortions within the pension system while considering demographic and financial factors projected over the next four decades. Mousiouttas expressed hope that parliamentary discussions would commence promptly, with the goal of implementing the reforms by January of the following year.
Key elements of the reform include a reduction in the early retirement penalty from 12 percent to 4.5 percent, as well as a cap on the reduction of the basic pension to 7.5 percent. These measures are expected to result in an average pension increase of approximately 6 percent for affected retirees.
The financial implications of the reform are significant, with an estimated cost of €24 million for current pensioners and an additional €12 million cumulatively over the next five years. Mousiouttas noted that the sustainability of the reform would be evaluated after five years to ensure its viability.
In response to the discussions, Demetriou announced that Disy would establish a working group dedicated to studying the pension proposals in detail. She reiterated the party's goal of achieving a comprehensive and sustainable reform that meets the needs of pensioners without imposing additional financial burdens on workers or altering the retirement age.
As the government prepares to advance the pension reform bill, the dialogue with political parties and social partners remains open, with the intention of fostering a collaborative approach to address the challenges facing the pension system in Cyprus.