Within August, the meetings of the Labour Advisory Body (ESS) will resume regarding the highly discussed issue of the pension system reform, aiming to reach an agreement among social partners.

According to Marinos Mousiouttas, Minister of Labour, a meeting between himself and Makis Keravnos, Minister of Finance, will precede early next month, as he explained, "several issues of the pension reform touch upon the responsibilities of the Minister of Finance."

He noted that subsequently, a series of ESS meetings with social partners will be scheduled, focusing solely on the pension reform.

Mr. Mousiouttas, who was speaking during a press conference presenting the Ministry's report on the 6-month Cyprus Presidency of the EU Council, and answering a question from INK, said that the government's goal is to table the relevant bill by September 20 at the latest, provided that the dialogue with social partners is completed.

"Even if the expected convergences within the ESS are not achieved, the discussion of the bill will follow inside Parliament, where all involved bodies and social partners will submit their positions," the Minister of Labour observed.

Nevertheless, Mr. Mousiouttas appeared optimistic that a middle ground would be found with the social partners, stating, "I have known them for many years from other roles in my professional and political career, and we have almost always found convergences."

Regarding the second pension pillar, the Provident Funds, the Minister of Labour clarified once more that it is not easy to include them in Phase A of the pension reform.

He referred to the diametrically opposed views held on the matter by employers and trade unions.

"The employers' side," he said, "demands the promotion of the Provident Funds institution on a voluntary basis, whereas the trade union movement demands its mandatory implementation."

He expressed the view that the first pillar, meaning the Social Insurance Fund (TKA), pension increases, and the 12% actuarial reduction, must proceed first, "and afterwards we can advance the Provident Funds as well."

The Minister of Labour argued that for a state to be ready to implement the Provident Funds institution, it needs three to four years. "Even if it is implemented within this timeframe, future retirees will be able to enjoy the supplementary pension right after 14 years."

More extensive news later.

Source: ink.com