Proposal to up public service retirement age to 64

DIKO, DISY and independent MP Zacharias Koulias have tabled two law proposals aimed at increasing public servants’ retirement age to 64 years old.

With the two proposals, submitted at Thursday’s plenary session, government workers will no longer be entitled to a pension until they have reached the age of 64 – the current retirement age is 63.

Furthermore, one proposal seeks to put a freeze on any benefits, meaning someone retiring at 64 years old will receive the same pension that would have been given if he retired at 63.

DIKO Vice president Nicolas Papadopoulos said the proposals would bring some structural changes and assist efforts for economic recovery.

He said the measures should be included in the government’s package of measures to boost the economy.

“We will save money from the one-off payments that would have been given to public servants next year, while we will also demand a freeze on the union benefits so that someone who would have retired at age 63 will receive the same pension after retiring at 64 years old,” Papadopoulos explained. 

Public servants who retire under the new regulations – provided they are passed – will not receive an increased pension, nor will they be entitled to a second pension from the Social Security Fund, he added. 

“For this reason, we are submitting proposals to amend the social insurance law, so that (public servants) are not entitled to a pension at the 63rd year of age,” said Papadopoulos.

He reasoned that the specific measure would be welcomed by the international markets, the European Commission and foreign rating agencies.

According to the Stockwatch yesterday, the aim is for the two law proposals to be submitted to the plenum on December 15, the day of the 2012 budget vote.

 

 

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