New amendments to pension reform bill a ‘step forward’

Three amendments to the bill on pension reforms were announced on Monday, following a meeting of the labour advisory body, which Labour Minister Marinos Mousiouttas said was “a step forward”. Mousiouttas said the amendments provided for the payment of pension increases over three years instead of five, expending the transitional period from five to 15 years and improving preconditions for widow and disability pensions. The aim of the government, he added, was to implement the new system on January 1, 2027, on condition that parliament would pass the bill by the end of 2026. Referring to the amendments, the minister said increases to pensions would be paid over three years, with 30 per cent during the first year, 30 per cent during the second and 40 per cent during the third. Mousiouttas said the problems arising from paying the full increase within three years instead of five would be balanced by the longer transitional period, which also allowed for better benefits to be paid to widows and disabled people. “I believe that with these three points so far we have come a step closer than we were a week ago. The aim is, examining the remaining suggestions given by the social partners, we will be able to come even closer,” he added. Nevertheless, the government’s intention remains to “take the bill to the cabinet soon and then to parliament”. Discussions with the social partners can continue even after the bill goes to parliament, he added. Referring to the second pillar of the pension reforms concerning the investment policy, Mousiouttas said there was no bill to discuss and the aim was to reach a “gentleman’s agreement” between the state and the partners. Mousiouttas said the delay in submitting the bill to parliament was due to efforts to achieve the closest possible convergence of positions between the social partners.