Pavlos Neophytou
With public statements from both Parliament and the Presidential Palace setting high expectations from the outset, the issue of multiple pensions for state officials is now reaching its decisive phase. All eyes are on whether political leaders will remain consistent in their promises as they attempt to resolve a long-standing distortion in the system. Months have passed with little progress—Parliament originally aimed to conclude the matter by last October—leading to growing public concern over a potential failure or lack of political will.
Recognizing the sensitivity of the issue, party leaders are now engaged in parallel processes: discussions in the Finance Committee on the 12 proposed laws, negotiations at the leadership level, and—most significantly—the preparation of a long-anticipated government bill. Last Tuesday, this bill was officially submitted to the Ministry of Finance, signaling that the final stage of legislative action is now underway.
The Government’s approach
According to sources close to the matter, the Finance Ministry’s proposed bill is built around a key principle: replacing state pensions with a lump-sum gratuity, effectively abolishing pensions for state officials and MPs. This shift aims to resolve legal concerns while aligning with public sentiment against multiple pensions.
The Ministry has also integrated elements from the 12 existing legislative proposals, ensuring that only those provisions deemed constitutionally sound remain. Any aspects previously flagged by the Legal Service as problematic have been removed. As a result, legal experts assure that the final text no longer carries constitutional risks. However, whether MPs will accept the Ministry’s work and withdraw their own proposals remains to be seen. The government’s goal is to avoid a situation where unvetted provisions lead to legal challenges that could derail the entire effort.
The bill is expected to be submitted to Parliament soon, following its approval by the Council of Ministers. Finance Minister Makis Keravnos is in close communication with coalition parties, who will review the bill’s details before it is formally tabled in Cabinet.
Political leaders’ strategy
Meanwhile, party leaders have launched a parallel initiative to streamline the 12 legislative proposals currently under review by the Finance Committee. At a meeting last week, they agreed to consolidate these proposals into a unified version that eliminates legal and constitutional concerns.
Importantly, the final proposal will not affect current officials, sitting MPs, or those already receiving pensions—this has been deemed unconstitutional by the Legal Service. The details of this compromise are expected to be ironed out in a second leadership meeting in the coming days.
During these discussions, leaders also emphasized that any new legislation should limit officials to a single pension and raise the retirement age from 60 to 65. Sources familiar with the negotiations indicate that these political-level discussions are running in parallel with the Finance Committee’s efforts, as both sides push to finalize the debate within the coming weeks.
Parliament’s next steps
The Finance Committee is set to reconvene on February 24, aiming for a final vote in Parliament by March. In the meantime, MPs are working to condense the 12 proposed bills, with individual members withdrawing their own proposals if they find them covered by other legislation.
AKEL has requested that Finance Minister Keravnos attend the February 24 session to clarify the government’s position and the direction of its legislative proposal.
At the core of the parliamentary debate is a growing recognition that any new law will only apply to future officials—those who assume office after the law takes effect. Current pension recipients and sitting officials will remain unaffected. This legal safeguard minimizes the risk of constitutional challenges, as no existing pensioner would have grounds to appeal the law in court.
However, some MPs argue that public discussions have misled citizens into believing that existing multiple pensions would be abolished. To counter this perception, there is serious consideration of introducing a voluntary pension waiver system—along with a public list of those who choose not to opt out, effectively using public pressure as a form of accountability.
The MPs’ divide
One group that stands to be affected by the new law consists of MPs first elected in 2021. If the retirement age is raised to 65, these MPs will still receive their one-term pension at 60, but any future pensions from additional terms would only be granted at 65. According to parliamentary sources, 22 out of 56 MPs fall into this category, and many feel unfairly targeted by the provision.
Some of these affected MPs argue that their senior colleagues—who have already secured their pensions—are now passing reforms that disadvantage the next generation of politicians. This has led to discussions about a possible internal resistance movement within Parliament before the final vote.
The race against time
Beyond the legislative and political debates, there is a practical urgency to concluding this matter by March. The outcome will shape the landscape for politicians considering a run in the 2026 parliamentary elections. As party insiders point out, clarity on the new pension rules is crucial for those weighing their political future.
With time running out, Parliament faces a critical test: Will it deliver on long-standing promises, or will the effort dissolve into yet another episode of political maneuvering? The coming weeks will determine whether meaningful reform prevails—or whether public frustration will deepen over yet another missed opportunity for change.
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