The much-debated issue of multiple pensions for state officials is being brought to the plenary session of the Parliament this afternoon, with MPs being asked to express their positions on a government bill as well as twelve legislative proposals submitted by the parties.
The issue has been discussed extensively in numerous sessions of the Parliamentary Finance Committee, without however any clear conclusion to a solution that will satisfy the public sentiment for social justice on the one hand and address issues of unconstitutionality and vested rights on the other.
The bill and the legislative proposals were included in a supplementary agenda for the afternoon Plenary.
A central provision of the bill submitted by the Government is the establishment of a gratuity as a form of compensation for state officials who take up duties for the first time after the law comes into force, instead of a pension. Those who have already served or hold office retain their existing rights.
The amount of the gratuity will be calculated based on a special rate depending on the position, while a 3% contribution is also provided for by the officials to the Consolidated Fund or other competent body.
What do the proposed laws provide?
The package of legislative proposals being discussed in the Plenary Session of the Parliament includes regulations that change the pension regime for state officials, with the aim of fair treatment, preventing abuses and removing distortions that cause reactions in society.
Among other things, a bill proposed by DIKO President Nikolas Papadopoulos establishes a general principle that the pensions to which an official is entitled, if they come from multiple positions, will not exceed in total 50% of the highest pensionable earnings he had. Furthermore, if a retiree returns to an office or position, his pension will be suspended for the duration of his new term. Occupational pensions earned through long-term service in the public sector are excluded.
Another proposal by DISY MP Averof Neophytou allows retirees who take up public office again to receive their pension, but provides for a reduction in the compensation they will receive from the new position. Specifically, the total pension and salary will not exceed the regular salary of the position.
A series of proposals from MPs from various parties introduces new regulations for officials who take office. Among other things, it increases the retirement age to 65 for MPs, ministers, mayors, and members of independent committees whose limit is currently 60 years.
It also provides for the possibility of waiving a state pension by officials who are appointed or elected to a public office, function or position.
With the proposal of AKEL MP Irini Charalambidou, a tax rate of 90% is introduced for the part of pension income that exceeds €70.000 per year, without being added to the taxpayer's other income. The regulation aims to eliminate provocative incomes that cause public sentiment.
The Parliamentary Finance Committee suggested changes to several proposals, including setting the date of implementation of the legislation as June 1, 2026.
He also suggested strengthening the competence of the Accountant General for the practical implementation of the new rules.
It also removed a provision that provides for the payment to the fund of the Independent Social Support Agency of an amount resulting from the renunciation of a pension by an official.
Source: KYPE
