Cyprus pension reform: payouts to rise by up to 60 per cent
Labour Minister Marinos Mousiouttas has set out a pension overhaul that lifts payments gradually over three years and aims to give every worker a second income from an occupational scheme.
Cyprus is moving ahead with a pension reform that would raise payouts by between 5 and 60 per cent over the next three years, as reported by Cyprus Mail. Labour Minister Marinos Mousiouttas presented the plan at the 17th Pension Forum in Nicosia, saying the aim is to give every worker a state pension plus income from an occupational scheme.
The bill has been through consultation with social partners and is close to going before the Council of Ministers and the House of Representatives. For 15 years, pensions would be worked out under both the old and new rules, so nobody ends up with less than today.
The most disputed point is the reduction applied to those who retire at 63 instead of 65. The government proposes softening it from 12 per cent to 7.5 per cent for five years, while keeping 65 as the retirement age.
What it means for residents
Anyone already drawing a pension, or planning to stop work in the coming years, should look closely at the dates: the relief for retiring at 63 is temporary, and the rules change after the transition.
- Check your retirement age. Staying on until 67 would bring a 15 per cent top-up, while leaving at 63 after the five-year window could mean a cut of roughly 15 per cent.
- Ask about your employer's scheme. The second pillar of provident funds and occupational plans is still being negotiated, so participation rules are not settled yet.
- Contributions for career breaks. Time spent caring for children or relatives, or living with a disability, would be covered by the state.
This text is written from the source article and is not a translation of it.
