The Labour Ministry intends to submit Cyprus’s pension reform bill to Cabinet in early July, most likely on July 1 or 2, according to Phileleftheros sources, as a critical week of consultations gets under way.
The coming week will be pivotal in shaping the bill’s final form, with a Labour Advisory Body session scheduled for Monday June 23, meetings with political parties and organisations planned, and the parliamentary Labour Committee convening for the first time in its new post-election composition on Tuesday June 24.
The Monday session is considered particularly significant. If the Labour Ministry submits the bill on July 1 or 2 as planned, social partners are expected to declare their position at that meeting. Both employers and unions want agreement on the first and second pillars of the reform — including provident funds — even if the second pillar is implemented at a later stage.
Outstanding issues between the two sides include the final minimum pension amount, the extent of the reduction to the 12% early retirement penalty, and the framework within which the committee overseeing SIKA’s investment policy will operate.
On Tuesday June 24, Labour Minister Marinos Moushouttas has been invited to address the OEB Board of Directors to brief members on the bill’s final details and the government’s intended course of action. Further meetings are likely during the week, though none have been officially announced.
The parliamentary Labour Committee also convenes on Tuesday for the first time under its new composition following the parliamentary elections, to plan its upcoming schedule. Pension reform is expected to feature on the agenda, with the Labour Minister likely to be called before the committee for a briefing in the near future.
The government’s stated objective is for the reform to take effect on January 1, 2027. Phileleftheros reports that the government is keen to avoid delays, given that 2028 is a presidential election year and campaigning is expected to begin a year before.
Should outstanding issues — including the second pillar — remain unresolved, a change of government in 2028 could lead to a policy shift or require the dialogue to restart. Phileleftheros describes this scenario as remote but not impossible.