Statement by Stefanos Stefanou General Secretary of AKEL, following the meeting with PEO on the subject of pension reform

 

29 September 2026, AKEL C.C. Press Office, Nicosia

The General Secretary of AKEL Stefanos Stefanou emphasised the complete alignment of views and assessments between AKEL and PEO regarding the government’s proposal for pension reform, following a meeting with the trade union organisation.

The discussion centred on the need to ensure adequate pensions for current and future pensioners, as well as addressing serious issues that remain unresolved. These include strengthening the state’s social policy, extending the Provident Funds scheme to cover all working people, the 12 per cent actuarial reduction, and the situation of men whose wives died before 2018.

The General Secretary of AKEL noted that the party will take a position on these specific issues when the government tables the relevant bill in the House of Representatives; until then, it will remain in constant contact with PEO and the trade union movement.

The General Secretary of AKEL statements in full:

‘I would like to thank PEO for the invitation and for the very creative and interesting discussion we had on the subject of pension reform.

I must say that there is complete agreement on views and assessments regarding the proposal tabled by the government and currently under discussion in relation to pension reform.

We had made it clear from the very outset that, in our view, pension reform must ensure adequate incomes for pensioners, so that they can meet the significant demands of life, whilst at the same time ensuring that future pensioners, today’s contributors, will also have a secure and dignified pension.

In fact, as the government’s proposal currently stands and as the PEO has analysed it for us, it appears that there are serious problems here that need to be addressed.

In our view, of course – and here too we agree with the PEO and, more broadly, with the trade union movement – pension reform must not overlook other important issues that complete the picture regarding pensions and pensioners’ incomes.

Beyond Pillar 1, which is the Social Insurance Fund, there is also the issue of the state’s social policy, which falls under Pillar 0. Very specific measures need to be taken here to improve the provision of services, as well as the policies the state implements towards pensioners.

There is the very important issue of Provident Funds, Pillar 2. It is an achievement, a gain that must be extended to cover all workers. After all, as a country we lag behind the European Union in terms of coverage, but the key thing for us is to ensure that all working people are granted this right.

There are also other issues facing us which are being discussed by the public, and which we discussed today, such as the 12 per cent actuarial reduction, known as the ‘12 per cent penalty’.

There are also issues concerning widowers who lost their spouses before 2018 and are not covered.

We have discussed these issues today with PEO and, as I have said, we are in complete agreement on the positions and views regarding the issues raised and discussed by the government.

We will of course discuss these issues when the government tables the bill in the House of Representatives. Until then, we will remain in contact with the trade union movement and PEO, as part of the ongoing discussions between the trade union movement, the government and employers.”