AKEL's New Pension Bill Faces Constitutionality Concerns

AKEL has submitted a bill to create a new unified professional pension scheme for all officials, aiming to reduce multiple pensions. The proposal was discussed in the Parliamentary Committee on Finance on Monday.

During the discussion, serious reservations were expressed regarding the constitutionality of the plan and issues of practical implementation.

According to AKEL's Parliamentary Representative, Giorgos Loukaidis, the new scheme will apply exclusively to future officials and does not affect those who already have vested pension rights.

The proposal includes, among other things, setting the retirement age at 65, abolishing multiple pensions, and regulating the simultaneous payment of salary and pension.

The Legal Service identified constitutionality issues, arguing that the proposal introduces a new institutional framework that falls under the competence of the executive branch.

The Accountant General, Andreas Papakonstantinou, expressed concern that offsetting the professional pension with the official's pension may be unconstitutional.

The chairwoman of the Finance Committee, Christiana Erotokritou, stated that the proposal is at a very early stage and cannot be immediately promoted to the Plenary.

The Plenary is expected to discuss the issue on July 10.

Source: CYPRUS NEWS AGENCY