THE STATE yesterday handed out another €90 million, this time in benefits for pensioners in the form of a one-off Easter bonus across the board and pension increases for those below the poverty line.
The poverty line was official set at €10,398 for one-person households and €15,597 for two-person households. Several studies have shown that pensioners in Cyprus are the group at the highest risk of poverty.
At its meeting yesterday the Cabinet adopted a plan devised by the Ministries of Finance and Labour to help pensioners with low incomes receive pension increases from between 9.0 per cent and 16 per cent, depending on income levels.
Additionally, pensioners, regardless of income, will receive another one-off Easter bonus, equal to the one received last year by the government.
Opposition DISY’s Averof Neophytou, hit out at the government over the bonus, saying that instead of targeting the needy, the bonus would go to all pensioners again, even the millionaires.
Last year the state gave out the bonus irrespective of income, which resulted in wealthy pensioners receiving the money as well as the poor.
“It seems that those with millions in Switzerland got the €300 this year too,” said Neophytou.
Labour Minister Sotiroula Charalambous hit back saying the government was not in a position to make an income-based decision on the bonus, and so decided to give the one-off bonus to all pensioners.
However, the ministries would “start collecting this data, so we can see who these millionaire pensioners are,” she said on Mega TV last night.
AKEL spokesman Stavros Evagorou accused DISY of not being able to see the wood for the tree.
“We’re looking at the basic issue. People will get their Easter bonus. If this bothers Mr Neophytou, let him try to get it back,” said Evagorou.
Charalambous described the latest plan to increase low-income pensions as an important step in implementing the pledge of the government to gradually lift those pensioners living below the poverty line.
Speaking after the cabinet meeting, the minister outlined the plans for low-income pensioners:
“Those eligible for the Scheme will be households with at least one pensioner receiving from the Social Insurance Fund, Social Pension, Professional Pension Plans implemented in Cyprus, and whose income is below the poverty line,” she said.
Those eligible will be able to apply for the increased pension by the end of May, while the increase will probably take effect from October, the minister said.
Pensioner households are divided into six categories and will be given pension increases of between nine and 16 per cent accordingly, with the highest increase going to the lowest-income bracket.
For single pensioners, those with incomes below €5,199 will get a 16 per cent increase, after which, the percentage drops in stages down to nine per cent for incomes up to €10,393.
For two pensioner households, incomes up to €7,798 will see a 16 per cent increase, while those closer to €15,597 will enjoy a nine per cent increase.
Charalambous said the new scheme aimed to correct previous schemes which failed to take into account additional incomes of pensioners. The new scheme provides assistance to those with the lowest total incomes, while eliminating the distortions of the previous allowance scheme, she added.
It is estimated that around 53,385 households, counting for 71,207 pensioners will benefit from the plan, which will cost the state around €56.9m in the first year, on top of the €111m currently being paid out as part of the original scheme.
Charalambous noted, as a result, the government would save some money in the form of certain benefits which won’t be given out to new pensioners whose household incomes are over the poverty line.
Meanwhile, the Easter bonus will come to around €33m, with new pensioners receiving a one-off sum of €300.80 and those already receiving pensions getting €286.64, just like the year before. Around 100,000 pensioners will benefit from the Easter bonus, from which around 15,000 are on the lowest pension scale.
