Cyprus-UK talks over social insurance fund reforms

Cyprus and Britain have ageing populations and there is an urgent need to reform the relative social insurance schemes, said Labour and Social Insurance Minister Antonis Vasiliou after a meeting he had with the UK’s Parliamentary Under-Secretary at the Department for Work and Pensions, James Plaskitt.

The two officials said they exchanged views and experiences in terms of promoting employment and opportunities for work as well as in matters concerning the reform of pensions.

“Cyprus and the UK both have ageing societies, our birth rates are declining and we face challenges on how we are going to fund people’s pensions in the future”, Plaskitt told reporters.

He said that both countries have an agreement for cooperation in various issues and the discussions fell within the framework of that agreement.

“Cyprus is an extremely valued partner in the EU and as good partners we share time and dialogue so that we can help each other to the benefit of our citizens and more widely to the benefit of the Union itself. There are more discussions to come, so far they have been very helpful, informative and constructive”, the British official said.

The Cypriot Minister said that the viability of the Social Insurance Fund in Cyprus could not exceed 2018 and urged all social partners to cooperate in the coming months, so that parliament can adopt a government proposal for reform by the end of 2006, in accordance with the obligations Cyprus has undertaken in the EU.

The proposal, he said, will include increase of the lower pensions, and probably an increase of the pensionable age.

‘What we heard from the British delegation was very useful in our efforts to modernize our Social Security Fund and upgrade our welfare state”, Vasiliou said.