Cyprus’ Accountant General Andreas Antoniades has warned that parts of the new law on multiple pensions for state officials could later be ruled unconstitutional.
Speaking on Politis’ podcast “A Look at the Economy,” Antoniades said the new framework “improves but does not correct all distortions” in a system he described as “one of the most complex in the EU.” He suggested a fairer, simpler model would be a single fund rewarding officials based on years of service and pensionable earnings.
Although the law aims to address constitutional flaws identified by the Supreme Court, he cautioned that future disputes may arise, especially when officials lose certain benefits. “We must be prepared for any eventuality, perhaps not immediately, but in the coming years,” he said.
Key changes
The framework maintains separate pension schemes but introduces voluntary pension renunciation for officials elected or appointed after 21 August 2025.
“In the 2026 parliamentary elections, both new and returning MPs will have the right, not the obligation, to forgo any other pensions,” Antoniades explained. They have 15 days to notify the Finance Minister, who must inform the House Speaker, though the list will not be made public.
The retirement age for new officeholders rises from 60 to 65, aligning with public servants. The law does not abolish multiple lump-sum payments, but it suspends pensions when officials also receive a salary. For future state officials, such as the President, Speaker, MPs, ministers and deputy ministers, the full pension will be suspended during their term.
Overall, total pensions cannot exceed 50% of the highest salary earned across different posts.
Fire relief spending
Antoniades also referred to the state’s wildfire relief effort in Limassol. Total costs are expected to reach €90 million, of which only €9 million has been released so far. A special relief fund created by the Treasury has collected €1.5 million in donations, which will be distributed as additional aid to affected citizens.