Statements by the General Secretary of AKEL A.Kyprianou, after meeting a delegation of the Initiative for the abolition of the 12% penalty on the pensions of those retiring at 63
AKEL C.C. Press Office, 16th April 2021, Nicosia
“We had a meeting with the initiative demanding the abolition of the 12% ‘penalty’ on the pensions of those who retire at 63 and not 65. I would like to recall that this was something that was imposed on us by the Troika in extremely difficult conditions for the Cyprus economy and the Cypriot people.
The situation has now stabilized. There may be a pandemic crisis that will cause problems in the economy, but we want to believe that this is something temporary.
We therefore consider that the possibility of returning the 12% exists, provided of course that the specific pensioners will have completed the necessary years so that they are entitled to a full pension. We don’t accept the argument put forth by the government or certain political parties that the Social Insurance fund will be endangered. Just a few weeks ago, the Minister of Labour announced that the sustainability of the fund is until 2080, so for that reason such arguments are unfounded and of course more so than when the sustainability of the fund is reviewed every few years and relevant decisions are taken that safeguard it.
AKEL therefore supports the demand. We will participate in the demonstration which will be organized tomorrow at 10:30 in the morning and we will support with all our strength the scrapping of the 12% penalty for those who retire at 63.
The Minister may have taken into account the 12% in the admissions that have been made about the viability of the fund, this is not the essence of the issue. The essence is what the General Secretary of trade union federation of PEO Pambis Kyritsis has said.
Does the government consider that a construction worker, a blacksmith, a mold maker and some other workers in arduous occupations working for 33 years is not enough for them to be able to retire and live a comfortable life?
This is what should guide us in how we decide on these issues and not some numbers that can be corrected by taking various decisions and as it has been rightly said before, I consider that the trade union movement in Cyprus has acted responsibly over time if and when any problems arise. So we are not worried about what the Minister of Labour is referring to.
What we are interested in is the people who start working at a young age, when they reach the necessary years to have the right to stop working and enjoy the pension that they are lawfully entitled to receive.”
