Labour Minister Marinos Moushouttas said on Monday that the Ministry of Labour intends to submit the pension reform bill to parliament by mid-July, giving social partners and political parties the summer to study and discuss it ahead of formal committee proceedings in September.
The remarks came after a meeting of the Labour Advisory Body on pension reform at the Ministry of Labour in Nicosia.
Moushouttas said the actuary presented social partners with proposed reforms covering widowhood and disability pensions as well as the orphan’s benefit, with the changes set to introduce more favourable conditions and eligibility criteria for workers.
He added that questions surrounding the 12% actuarial reduction were also being addressed, following a request from Advisory Body members, alongside other secondary issues related to the first pillar.
Turning to the public debate that developed during the pre-election period, the minister stressed that no final position had been reached and that the exchange of views with social partners was continuing until a consensus solution was found.
He called for figures and speculation that, in his words, “are not grounded in the full truth” to be avoided, saying those putting forward such assessments did not have access to all the relevant facts.
“It would be better to ask us, the competent authorities, but the best thing would be to have a little patience, because according to the timetable we outlined, by mid-July we will have submitted the legislation to parliament — which means it will have been given to social partners beforehand, and that the parties will have the opportunity to study it and discuss it with us over the summer,” he said.
The ministry intends to continue briefing social partners and receiving submissions throughout the summer so that parties are as well-informed as possible when formal discussions begin in the relevant parliamentary committees in September, Moushouttas added.
He said he was confident the timetable for the first pillar could be met, while noting that a difference of opinion remained with social partners over whether the first and second pillars should proceed simultaneously.
The government’s position, he said, was that the first pillar should move ahead so that changes could be implemented and felt by citizens. He identified the key priorities as raising low pensions, beginning the repayment of amounts owed to the Social Insurance Fund, and establishing a body to manage the fund’s assets in line with European standards.
The minister said the goal was for fund surpluses to be deposited into a dedicated account, allowing processes to be rationalised gradually and the state to eventually cease being the fund’s largest debtor.
On the content of the reforms, Moushouttas said proposals were being examined to grant contribution credits to insured persons who would be required to contribute from the age of 16, as well as to categories including mothers caring for children, informal carers and people with disabilities. These proposals, he said, could be expanded to cover additional categories of workers requiring further regulation.
Moushouttas expressed confidence that the pension reform would not fall short of the tax reform implemented last February, saying it would bring relief to a large share of the population — workers, former workers and current or future pensioners.
“We will do everything possible, within the fund’s means, to raise low pensions,” he said, clarifying that the formulas to be used would also increase medium and higher pensions, with the greatest weight given to those on the lowest pensions.
At the next meeting of the Labour Advisory Body, on June 4, the Finance Ministry will present its investment policy, the methods for returning funds, the operation of the Management Authority, the formulas and the interest rates, Moushouttas said.
He also said there were thoughts to structure the pension reform legislation along similar lines to the Hydrocarbons Fund law, with the Social Insurance Fund operating as a separate structure.
The draft legislation would be sent to social partners for study in the coming days, he added, so that subsequent sessions could also complete the social policy pillar relating to the Social Insurance Fund.
Closing, Moushouttas said that despite differing views expressed from time to time, cooperation with social partners was good. There may not be agreement on everything, he said, but there was synergy, as the ultimate benefit was for citizens and workers.
(information from CNA)