Cyprus trade unions have expressed strong opposition to the pension reform bills scheduled for submission in July, citing unresolved issues. Despite these concerns, Labour Minister Marinos Mousiouttas confirmed the government’s determination to table the legislation before the parliamentary summer recess in mid-July. The government plans informal discussions during the summer and aims to have the reform approved and implemented by January 1, 2027.

The pension reform involves two main components: state pensions and the management of provident funds including the Social Insurance Fund (SIF). A key part of the plan is ending the state’s borrowing from the SIF, which currently amounts to €12 billion, with repayments linked to national debt levels. Additionally, the government intends to create a supervisory body for SIF investments.

Union leaders warned that the substance of the reform should take priority over meeting deadlines, emphasizing the need to ensure pensions above the poverty line in the long term. They also opposed the government’s approach to review the reform in separate stages, noting the interconnectedness of the reform’s elements. The last significant overhaul of Cyprus’ pension system occurred in 1980, with further adjustments made between 2012 and 2013.