The government of Cyprus is ready to present new pension reform laws. These laws will help the nation's social insurance fund. The proposals are expected by June. They are designed to fix problems and help citizens financially. The Labour Minister, Marinos Mousiouttas, said they will help low-income pensioners. They will also help people who retired early.
A main part of the reforms is changing how the social insurance fund invests money. The fund has often invested in slow-growing things. The new laws want to invest in different types of assets. They plan to invest more in assets not traded on public markets. This should bring better returns. The Minister said this will be done safely. This change will make the fund stronger. It will help it pay pensions in the future.
The reforms will also increase payments for poor pensioners. Many of them have financial problems. The government also owes the social insurance fund a lot of money. This debt is about €11 to €12 billion. The new laws will help pay back this debt. This will make the fund much more secure.
There will be changes to penalties for early retirement. Some changes happened in 2024. More changes are coming. These will make the system fairer for people who worked a long time.
The government also wants to combine different benefit systems. This will make things simpler. It will also help deliver social benefits better. Minister Mousiouttas wants to work with others. He said they want to "help people." The goal is a stronger pension system for everyone in Cyprus.