**Pension Reform Bill to be Submitted to Parliament by Month's End**
The long-awaited pension reform bill is set to be presented to the House of Representatives by the end of this month, as confirmed by Labour Minister Marinos Mousiouttas during a meeting with the labour advisory board on Monday. Mousiouttas emphasized the government's commitment to addressing the complexities of the reform, stating, "We are trying to do the best we can." He urged the board to utilize the remaining three sessions to clarify any outstanding questions prior to the commencement of detailed discussions.
The philosophy behind the pension reform has been publicly available for two years, with earlier proposals discussed in technical committees. Mousiouttas expressed confidence in the progress that could be achieved, particularly regarding the second pillar of the reform, while the first pillar continues to undergo thorough examination. He reiterated the government's willingness to engage in daily dialogue to resolve any issues, although he acknowledged that the final decision would rest with parliament once the bill is submitted.
The financial implications of the pension overhaul are significant, with Mousiouttas indicating that the annual cost will be "considerably more" than €50 million. The government maintains its target to implement the reforms by January 1. Under the proposed changes, approximately 123,000 retirees are expected to see an increase in their pensions. Notably, over 50,000 individuals could receive an increase exceeding €100 per month, while more than 8,000 retirees may benefit from a €200 monthly increase, phased in over five years.
Key changes in the pension calculation method are also proposed. The basic pension will now be determined based on the total period a person is registered and insured, rather than through existing formulas. This new calculation will include state-subsidized contributions alongside an individual’s own contributions. While the retirement age will remain at 65, there will be an option for individuals to continue working until the age of 67. Additionally, the penalty for early retirement is set to decrease from 12 percent to approximately 7.5 percent, rather than being eliminated entirely. For pensioners earning up to €600 per month, a minimum increase of €30 per month is guaranteed.
Despite these proposed enhancements, concerns have been raised by trade unions regarding the potential impact on poverty levels among retirees. Peo leader Sotiroulla Charalambous highlighted that some pensioners may still fall below the poverty line even after the reform is implemented. She pointed out that the minimum combined income of €900 would still not meet the €1,018 poverty threshold.
The labour advisory board is scheduled to continue its discussions until October 10, aiming to finalize the details of the reform before the bill is submitted to parliament. The outcome of these discussions will be crucial in shaping the future of pension provisions in Cyprus and addressing the concerns of retirees across the nation.