Cyprus employers call for measures to safeguard SIF

The Employers and Industrialists Federation (OEV) has sent a list of proposals to Labour Minister Sotiroulla Charalambous within the framework of social dialogue and efforts to find ways to help ensure the viability of the Social Insurance Fund, a source which all pensioners depend on.
The set of proposals suggest the gradual abolition of the right to retirement at 63 as the SIF was created several decades ago taking into account the conditions prevailing at that time.
“While life expectancy has increased in recent years, the retirement age was reduced in 1993 from 65 to 63 years. This had an immediate repercussion on the SIF’s funds which was designed to pay out for 7-8 years and that has doubled in recent years and to a larger number of pensioners,” noted OEV chairman Andreas Pittas.
“On the other hand the birth rate has drastically fallen and the age of first employment continues to rise delaying contributions to the SIF.”
OEV suggests to revert to the retirement age of 65 through a gradual process of two months every year, that will take a process of 12 years.
The OEV proposals also recommend that the SIF’s investment policy also be reformed as it has been based on an interest-bearing scheme developed at a time when rates were double of what they are today. They further call for the social partners (employers, state, unions) to have a greater say in the management of the SIF, as they are the primary contributors to this fund, but they are simply informed by the Ministry of Labour and Social Insurance of the fund’s latest development. OEV has called for greater participation on the SIF board of trustees.