The establishment of an Interministerial Committee for pension reform will be included in the agenda of the next Cabinet meeting, announced the President of the Republic, Nikos Christodoulides.

In his speech at the anniversary event marking 60 years of universal social insurance, the President stated that the Interministerial Committee for Pension Reform will operate under the responsibility and chairmanship of the Minister of Labor and Social Insurance, with participation from the Minister of Finance, the Deputy Minister to the President, the Deputy Minister of Social Welfare, the Commissioner for Gender Equality, and the Citizen’s Commissioner.

"The Interministerial Committee will substantially contribute to the necessary intergovernmental coordination for the pension system reform and will begin working immediately in this direction," he noted.

At the same time, he highlighted that in the coming period, a thorough dialogue and exchange of views will take place with social partners within the framework of the Labor Advisory Body, political dialogue with parliamentary parties, and public dialogue with citizens.

"A holistic and comprehensive discussion on the challenges, possibilities, and prospects of pension system reform is essential for making the right and appropriate decisions for the benefit of citizens," he said.

The President assured that the Government has the political will to adhere to the timelines and implement the pension reform and expressed confidence that the necessary cooperation will be achieved for this purpose.

"I am confident that, with the constructive collaboration of all stakeholders, this ambitious goal will be achieved for the benefit of current, future, and subsequent generations," he stated.

The President noted that the 60th anniversary of the adoption of the 1964 Social Insurance Law is the most significant social milestone of the Republic of Cyprus. He emphasized that this decision demonstrated the young Republic’s commitment to the constitutional provision guaranteeing the individual right to social security and establishing a social insurance system.

He added that, considering the circumstances of the time, the consistency shown by the newly formed Cypriot state in fulfilling its obligations under Article 9 of the Constitution is admirable and remarkable.

He acknowledged the pivotal role played by then Minister of Labor Tassos Papadopoulos, whose contribution was instrumental in this historic development.

"Even today, 60 years later, our country's pension system remains internationally recognized as a positive reference point. The decades that have followed and the role of universal social insurance affirm the pride and satisfaction we rightfully feel," he said.

The President mentioned that his Governance Program emphasizes the need to improve, modernize, and reform the pension system. In this context, the Ministry of Labor and Social Insurance has been working in this direction.

He highlighted several significant improvements made in recent months, such as accelerating the processing time for benefit applications, notably ensuring the first payment of statutory pensions within one month.

Additionally, he noted that the Cabinet extended maternity leave by one month and included self-employed individuals among the beneficiaries of parental leave. Bills were also submitted to Parliament to increase childbirth allowances and expand parental leave.

"In this framework, considering that our policies prioritize individuals and improving their daily lives, we are moving forward with pension reform. This will lead to the upgrade of the social insurance system and the utilization of supplementary insurance pillars," he said.

More specifically, he noted that the social insurance system upgrade focuses on improving pension adequacy, optimizing investment policies, and modernizing technological infrastructure and internal processes. The supplementary insurance pillars aim to expand participation in occupational pension funds and promote additional private insurance options.

At the same time, President Christodoulides emphasized the development of an insurance culture for timely retirement planning, addressing undeclared and underreported labor to minimize insurance gaps, and enhancing wage adequacy to ensure sufficient insurance contributions.

He stated that the Ministry of Labor and Social Insurance is methodically working in this direction with guidance and support from the International Labor Organization.

According to the Government's plan for pension reform, the relevant bills will be submitted to the Cabinet in 2025 and subsequently to the House of Representatives.

"Pension reform in Cyprus is a Government priority. It was part of our election program, a promise made to the Cypriot people, and we will deliver. Undoubtedly, it is a social necessity requiring collective effort and responsibility," he said.

Concluding, he stated that the Government, acknowledging its historical responsibility, is committed to leading the pension system successfully into the next six decades, ensuring that the 120th and 180th anniversaries of social insurance will be celebrated with pride by future generations.