President Nikos Christodoulides has described the pension reform framework presented to social partners on Wednesday as the biggest and most substantive reform of the pension system since 1980.
In a message, the President said the proposed reform aims to strengthen fairness, adequacy and security for every generation, resting on two “non-negotiable principles”: more dignified pensions today and a sustainable Social Insurance Fund for the future.
According to Christodoulides, the greatest support will be directed towards low-income pensioners, while the reform will also help boost households’ disposable income.
He said the message to every pensioner, every worker, and every young person is clear, and that the reform is being carried out for them.
Who the reform is aimed at
The President said the new framework concerns:
- Pensioners entitled to a better quality of life
- Workers seeking to secure their future
- Mothers who paused work to raise their children
- People with disabilities who did not have equal opportunities to contribute to insurance
- Young people currently studying and preparing to enter the labour market
- Future generations, for whom a financially secure Social Insurance Fund is needed
Part of the wider reform programme
Christodoulides placed the pension reform within the government’s broader programme of changes, referring to tax reform, changes to benefits, the policy framework for people with disabilities, and the permanent agreement on the Cost of Living Allowance.
He also referred to increases in the minimum wage and policies to support families and employment.
He said the government continues to aim at boosting the disposable income of households, businesses, young professionals and pensioners.
The President said government policy is based on the framework of Social Liberalism, which he said combines a resilient and competitive economy with a strong welfare state, as well as fiscal responsibility with social justice.
“For us, change in our country, progress in our homeland, is measured through the improvement of every citizen’s daily life,” he concluded.
