pension reform

New legislation proposed for multiple pension reform

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New legislation proposed for multiple pension reform

State officials will soon have the option to give up their pensions under a new bill proposal co-signed by two political parties. The proposal aims to address the public outcry over officials receiving multiple pensions. The bill allows officials to renounce their pension for the duration of their service and transfer the funds to a social support body. If an official refuses to renounce their pension, Parliament will be notified. This regulation is seen as a simple and constitutional solution to the issue of multiple pensions.

No need to raise retirement age says minister

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No need to raise retirement age says minister

The social insurance fund (SIF) in Cyprus is financially viable until at least the year 2080, based on an actuarial study outlined by Labour Minister Yiannis Panayiotou. The study found that the fund’s revenues are sufficient to cover annual increases in spending on pensions, and the reserves of the SIF are at satisfactory levels. The analysis determined that it is not necessary to raise the retirement age until the next review in 2025. The International Labour Organisation recommended diversifying the SIF’s investment portfolio and gradually altering its investment policy. The review’s findings will serve as a baseline for the planned pension reform of 2025.

State pension fund reaching critical levels

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State pension fund reaching critical levels

The Fiscal Council has warned that state borrowing from the Social Insurance Fund has reached critical levels, with the government owing over €10 billion to the fund. This borrowing threatens public finances and could lead to pressure on the state budget. The Council suggests reducing the state’s debt to the fund and revising the investment policy to achieve higher returns. The study also recommends increasing the percentage of assets invested in non-government securities to diversify the portfolio.

Cyprus considers raising retirement age, ending multiple pensions for officials

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Cyprus considers raising retirement age, ending multiple pensions for officials

Cyprus is debating pension reform, with a focus on modernizing the system and addressing sustainability concerns. Multiple pensions for government officials have emerged as a key point of contention, representing less than 10% of the strain on the system. The Ministry of Finance proposes raising the retirement age for government officials and parliamentarians to 65, aligning them with the general population. The International Labour Organisation is studying the Cypriot pension system and has highlighted the need for a balanced and sustainable system. Mercer analyzed 47 global pension systems, with European models performing the best. British Prime Minister Liz Truss sparked opposition for claiming a large annual pension after serving for only 44 days. Former UK Prime Ministers can claim the Public Duty Cost Allowance, but holders of the three great offices of state no longer receive a pension of half their last salary upon leaving office.