Axing of multiple pensions welcomed by parties

POLITICAL parties yesterday welcomed a government bill abolishing multiple pensions for state officials, though the opposition reserved some criticism for the administration.

The bill seeks to do away with the practice of former state and semi-government officials who have held more than one public position to receive a pension for each.

It also abolishes provisions allowing retired officials who are appointed to public office to receive a salary and a pension at the same time.

Main opposition DISY described the move as positive but reminded that parties had submitted a similar proposal back in December while the government put forward the bill two weeks before parliament dissolves ahead of the elections.

The December proposal had been supported by all parties except ruling AKEL.

“The government delayed but nevertheless we reiterate our pledge to view any proposal that lifts the provocative social injustices,” DISY spokesman Haris Georgiades said.

Government coalition partners DIKO voiced hope that this would be the beginning of a comprehensive reform of the pensions system.

AKEL described the bill as a substantive step to end the “provocative practice of double and triple pensions enjoyed by state officials for years.”

The bill will be generally retroactive.

One of the main provisions is that officials who served in many public posts will no longer receive multiple pensions.

Instead, they will receive 50 per cent of the highest income they had.

The bill suspends payment of pension in the event an official is appointed to public office and also abolishes the privilege of civil servants who retired early — to take up a public position — to receive their pension at the same time as a salary.

It also does away with the practice of crediting civil servants who retired early to assume public office, with extra years of service – without having served them – so that they would receive a higher pension.

This provision however applies only to future government workers.

Publication of the names and revenues of former state employees late last year caused a stir, at a time when the government was trying to find ways to cut spending due to the downturn.