Controversy Surrounds Cyprus MPs' Pension Benefits and Contributions

Controversy Surrounds Cyprus MPs' Pension Benefits and Contributions

Revelations Highlight Imbalances in Parliamentary Retirement Scheme

The recent report by Brief caused a stir among the public by exposing the system of multiple pensions and excessive retirement benefits for Cyprus' Members of Parliament. Despite the uproar, MPs and the Parliament's presidency have remained silent on the matter, even as they had previously submitted seven proposed laws in response to two government bills.

No Contributions to Social Security Fund

Brief discovered, amid the ongoing discussion about addressing distortions in officials' pension benefits, that Cyprus' MPs, including the President and the Speaker of the Parliament, do not contribute even a cent to the Social Security Fund.

It was found that the MPs created a special plan in 2013, compelled by the Troika, where they contribute €519 monthly. However, these contributions do not reflect the significant pension amounts and lump sums they receive at the end of their term and upon retirement.

Financial Disparities

The recent report from Brief reveals the disparities in compensation and deductions for officials from the General Accounting Office of the Republic of Cyprus, confirming that the President, the Speaker, and all 56 MPs do not contribute to Social Security. The data presented by Brief is from the year 2024, indicating no possible variation in these figures.

Contribution vs. Benefit Discrepancy

Experts specializing in pensions and benefits noted that the MPs' contributions, approximately €30,000 over five years, result in returns exceeding €420,000. This imbalance, they said, is concerning, given warnings about the Social Security Fund's sustainability. These experts suggest that contributions to Social Security should be mandatory for MPs, like for other public officials.

The experts added that there are various pension plans that the government and Parliament could implement for all officials with full transparency, ensuring their benefits align with their contributions.

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