Low-income pensioners may see up to a 50% increase in their pensions after the reform, according to the competent Minister of Labour Marinos Mousiouttas.
Increases will also occur for those who retire at the age of 63, while the competent minister also clarified what will apply to those low-income pensioners who receive the "small axe".
Speaking to Omega, Marinos Mousiouttas attempted to clarify with specific examples the changes that will occur after the pension reform, with the footnote that the case of each pensioner is different and we should not generalize the changes that will occur.
(a) Low pensions: The lowest pension is currently €480-500. In some of these cases, an increase of up to 50% will be justified. In other cases, the increases will be in the order of 40%, 30%, 20%, 10%. Example: "An employee with an income of €11,000 per year, who had a continuous flow of employment, currently receives a pension of €500. This can go up to 50%, i.e. to €750. However, the same will not happen with someone else, who has been paying contributions for fewer years.
(b) "Small Cheque": He also provided clarifications for those who currently receive supplementary state support through the Deputy Ministry of Social Welfare, i.e. the well-known "small cheque". As Marinos Mousiouttas said, a pensioner who currently receives a pension of €500 and an additional about €220 from the "small cheque", will not see a total increase of 50%, as part of the state aid may be reduced due to the increase in his pension. Therefore, the one who currently receives a total of about €720, will go to €820-€830.
(c) Penalty at 63: Those who retire today at the age of 63 will also benefit, both due to the general increases and the reduction of the penalty by 12%. "A person who retired at the age of 63 will benefit from the general increase and additionally from the increase that will result from the reduction in penalties of 12%. If, for example, the reduction of the penalty is reduced by 30%, then the corresponding benefit will be added to his pension.
(d) Minimum pension: The Minister of Labour was vertical in relation to what was heard about the increases in minimum pensions during the pre-election period. "The amount of €1.088 for a minimum pension was heard. I say I wish it would go to €1,500. Is it possible without an increase in contributions or without an increase in the retirement age? I am clearly saying that there is no such possibility," he said.
Second ten days of July
Within the second ten days of July, we have set the goal of giving the bill for the pension reform to the social partners so that its substantial and continuous discussion can begin, the Minister of Labour also told KYPE.
Asked, before his meeting with the Board of Directors of the Nicosia Chamber of Commerce and Industry, to state whether the discussion will continue during the summer, Mr. Mousiouttas replied in the affirmative, saying that the goal is for the bill to be submitted to the Parliament next September. Within the two and a half months that intervene until the bill is submitted to the Parliament, "we must find convergences – if we can – in order to be able to move forward", he underlined.
In Parliament on September 20
Regarding the time when the bill will be submitted to the Parliament, Marinos Mousiouttas noted that this will take place on September 20, underlining that this will be done regardless of the outcome of the dialogue with the social partners.
The competent minister announced a round of contacts in the immediate future with the parliamentary parties to explain the technical details of the bill by the actuary. The goal, as he explained, is "in September, when they will officially have it in front of them, to know the pluses, the minuses, what suggestions they will make and what concerns they will submit".
