For the trade union movement, the pension reform has not been "locked in," as has been leaked recently, with Andreas Matsas, General Secretary of SEK, categorically stating that, at the present stage, no such prospect is in sight.

"What needs to be done," he stressed, "is the creation of a common key that will pave the way for a comprehensive reform of the pension system."

Speaking to INK ahead of the submission of the relevant bill by the Minister of Labour at the next meeting of the Labour Advisory Body, which will convene next week, Mr. Matsas noted that the goal of the social partners, the state, employers, and trade unions, "is to ensure that no retiree falls below the poverty line."

SEK’s Positions Defined by Multi-Pillar Integration

The positions of SEK on the pension issue are also formulated in yesterday's main editorial of "Ergatiki Phoni" (Labour Voice), the organ of expression for the Movement.

According to "Ergatiki Phoni," linking the reform to the second pillar, which concerns Provident Funds, is absolutely imperative for the substantial enhancement of pension benefits.

The regulation of the third pillar, which concerns private insurance, is additionally and supportively important.

The design of pillar zero, which concerns the social intervention of the state, carries its own particular significance for achieving a socially just regulation.

Fund Governance and Financial Safeguards

Equally important is the creation of an autonomous body for managing the reserves and the investment policy of the Social Insurance Fund (GSF).

The comprehensive reform provides the opportunity for a holistic arrangement of the actuarial adjustment (12%), without negatively affecting the GSF reserves, and clearly without altering the retirement age limit.

SEK, as A. Matsas states, is in full cooperation with all trade unions participating in the Labour Advisory Body and will continue its efforts to adequately cover all retirees.

According to information obtained by INK, the Minister of Finance, M. Keravnos, and the Minister of Labour, M. Mousiouttas, are in full consultation, both regarding the ongoing social dialogue on pension reform and the upcoming bill to be submitted to Parliament.

Legislative Timeline and Fiscal Implications

The bill will be submitted next September, with the resumption of the House of Representatives' operations after the summer recess.

Public finances will inevitably be impacted within the framework of the reform, which is the main reason for Makis Keravnos' involvement. After all, the Ministry of Finance covers four pension schemes, which mainly concern low-income retirees.

A. Milidonis Appointed as Advisor to the Ministry of Labour

According to information obtained by INK, Andreas Milidonis, Professor of Finance at the University of Cyprus, will serve as one of the advisors to the Ministry of Labour within the framework of the pension reform.

Mr. Milidonis possesses deep knowledge of the pension system, has authored a series of articles, and his public interventions on the matter, particularly on social media, enjoy widespread recognition among his readers.

In recent statements to INK, Mr. Milidonis defended his position regarding the establishment of an Independent Supervisory Authority. The academic is also unreservedly in favour of removing "the absolute political control of the state over the pension system."

Source: ink.com