The government is committed to implementing pension reform, President Nikos Christodoulides stated on Tuesday, marking a significant step towards modernising Cyprus’ outdated systems.
- The government is committed to implementing pension reform, President Nikos Christodoulides stated on Tuesday, marking a significant step towards modernising Cyprus' outdated systems.
Speaking after a meeting with the Cyprus Economic and Competitiveness Council at the presidential palace, Christodoulides emphasised the urgent need to reform structures that have not evolved since the 1960s. “One of the greatest needs in our country is to reform a state still operating with structures from the 1960s,” he remarked, highlighting the critical nature of this initiative.
Joined by the ministers of finance and labour, the discussion centred on the government’s “absolute political will and readiness” to advance pension reforms. This initiative forms part of a broader strategy that includes reforms in various sectors, such as the Audit Office, the Law Office, educational systems, the Cost of Living allowance (CoLA), and tax regulations.
The proposed pension reforms aim to achieve three primary objectives: increasing pensions, strengthening welfare funds, and ensuring the sustainability of the Social Security Fund. Such changes are crucial as the last major update to the pension system occurred in 1980, with only minor adjustments made during the financial crisis of 2012-2013 as part of an agreement with the Troika.
Christodoulides pointed out that reforming pensions is a priority to adapt to “new realities” in the country. He has also encouraged members of the council to submit their proposals, stressing the government’s openness to diverse ideas that could shape the future of Cyprus’ pension system.
