Minister urges speedy approval of Social Security Fund

LABOUR Minister Sotiroula Charalambous yesterday urged Parliament to approve her ministry’s proposal to ensure the viability of the Social Security Fund as soon as possible.

The bill was discussed in a joint meeting between the House Finance and Labour Committees.

Finance Committee Chairman Antigoni Papadopoulou of DIKO requested replies to a series of questions presented by the deputies, so the bill could be promoted to the Plenum before Christmas.

Presenting the bill, Charalambous said those who retire and receive one-time payments and/or a monthly pension without having contributed to the SSF will no longer be entitled to unemployment benefits.

She explained that this would inevitably affect public workers and the public sector in general.

The new plan also offers the right to retire at the age of 63, depending on the person’s years of contribution to the SSF.

Regarding SSF investments, Charalambous said there would be a meeting today with the relevant partners, where they will discuss pension fund investments.

The main aim of this bill, she added, is to secure the SSF’s viability until the year 2050 and it has taken three years of ‘exhaustive discussions’ with all the parties involved in order to reach the final draft.

The minister admitted, however, that the problem with low pensions would not be resolved with this bill.

Speaking after the meeting, Charalambous said the bill provides a 1.2 per cent increase in SSF contributions, which will take place over five years in seven instalments.

Employers will contribute 0.5 per cent, employees also 0.5 per cent and the government will contribute the remaining 0.2 per cent.

Charalambous urged Parliament to pass the law before the Christmas holidays.

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