DISY questions unfair pensions

THE OPPOSITION yesterday laid bare the disparities of an unfair pension system that affords some three pensions while others live under the poverty level.

“While one in two pensioners live under the level of poverty… the system has created the extremely privileged,” DISY deputy chairman Averof Neofytou said.

Neofytou said there are many people in Cyprus who receive two, three, four and even five pensions at the same time.

“If one has served in three state positions they could claim three pensions,” Neofytou said. “I was mayor, minister and today an MP. At 60 I will claim three pensions.”

Neofytou highlighted the big gap between state and private workers’ pensions.

He said an employee in the private sector receiving the same salary as a civil servant would contribute double the money to the social insurance fund but receive one-third of the total pension benefits of his state counterpart.

If a retired high-ranking semi-government official dies, his pension will automatically go to his widow for the rest of her life, Neofytou said.

And retired civil servants who are appointed to independent state office continue to receive their pension on top of the salary and any other benefits stemming from their position.

In addition, the pension and bonus of a civil servant is based on their last pay cheque and not, for instance, on the average income of the last five years.

That is why it has become a rule for government workers to fight over a promotion even though they could be retiring in a few months or they are on pre-retirement leave, Neofytou said.

He added: “I expect a leftist government to come up with proposals to lift these super privileges… they can be sure we will stand next to them.”

Neofytou warned that the current pensions system was no longer sustainable, noting that the current cost was three per cent of GDP.

“In 20 years our finance needs to cover the pension system would be 17 per cent of GDP,” he said. “Where are today’s 30, 40, and 50-year-old workers going to get their pensions from?”

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