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12° Nicosia,
19 June, 2025
 

Cabinet looks to end decades-long debate on multiple pensions

Revised retirement bill aims to regulate lump-sum payouts and curb overlapping benefits for state officials.

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The Cabinet on Tuesday approved an amended bill on retirement benefits for state officials, moving one step closer to resolving a public issue debated for over 40 years.

Government Spokesperson Konstantinos Letymbiotis said the Council of Ministers, chaired by President Nikos Christodoulides, approved the “Law on the Payment of Gratuities to Officials, 2025,” and authorized its submission to Parliament.

The revised bill introduces two key changes following discussions in the Parliamentary Committee on Finance and Budget: the gratuity calculation for Members of Parliament will now use a one-third coefficient instead of one-quarter, and a provision subjecting the gratuity to income tax has been removed.

The legislation will apply only to officials taking office after the law comes into effect.

“This government bill has been before Parliament for months,” Letymbiotis said. “We must consider constitutional provisions and the views of the Legal Service. With these adjustments, we hope the House will swiftly conclude deliberations.”

Letymbiotis emphasized the government's commitment to settling the issue, which he noted has been under public scrutiny since the 1980s.

Statement on ongoing court case
Responding to questions about a separate case involving the Deputy Director General of the Ministry of Defence, Letymbiotis said all institutional and legal procedures are being followed. When asked if the official would be placed on administrative leave, he stated that any such decisions would respect the legal process and be guided by recommendations from the Legal Service.

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