Government Spokesman Konstantinos Letymbiotis announced that Cyprus' next major legislative push will focus on a comprehensive pension reform. Set to hit the House of Representatives after September, the framework aims to directly boost pensioners' disposable income while maintaining robust public finances.

The Next Major Initiative

Cyprus' planned pension reform will address the modern needs of pensioners while safeguarding the sustainability of the social insurance system, Government Spokesman, Konstantinos Letymbiotis, said on Sunday.

Speaking to reporters in Paphos after a memorial service for those killed during the 1974 coup in Cyprus, Letymbiotis described pension reform as the government's next major reform initiative.

A Combined Economic Strategy

He said President Nikos Christodoulides, together with the Ministry of Labour and Social Insurance and the Ministry of Finance, has prepared a comprehensive framework for the reform.

"The objective of any state is to strengthen its public finances and maintain a strong, resilient economy," Letymbiotis said, adding that this provides the solid foundation needed to support measures aimed at increasing citizens' disposable income.

Building on Completed Reforms

He noted that the government had already implemented a series of measures, including the tax reform, two increases to the Guaranteed Minimum Income and the full restoration of the Cost-of-Living Allowance (CoLA) after years of partial application.

"The next important step is a pension reform that takes into account the modern needs of our pensioners while ensuring a resilient social insurance system," he said.

Social Partner Consultations

Letymbiotis added that the Ministry of Labour and Social Insurance has already presented the executive's main proposals to social partners. Their views, together with those of political parties, will be incorporated into the final reform package to ensure it delivers tangible benefits for pensioners as soon as possible, he added.

Timeline for the House of Representatives

Asked about the timetable, he said the government expects to submit the relevant legislation to the House of Representatives after September, once the consultation process has been completed.

He stressed that the government views public consultation not as a formal procedure but as a substantive tool for improving legislation, citing the tax reform process as an example.

Source: CNA(ΚΥΠΕ)