A package of bills aiming to straighten out the issue of multiple state pensions paid to certain state officials will go to the plenum on June 19, with MPs on Monday deciding that the debate on the matter has been exhausted.
It still remained unclear, however, which of the dozen or so legislative proposals tabled by MPs would make it to the House plenary for a vote. Other than that, there are also the government bills which will go to a vote.
Lawmakers have for months grappled with what to do about the multiple pensions paid to state officials, or the fact that certain officials keep drawing a salary while receiving a pension.
This concerns a relatively small group of officials. Back in March, MPs heard that 98 individuals who have worked in the state sector get more than one pension or a pension plus a salary. In a few cases, retired officials are on three pensions.
When asked which bills would go to the scheduled June 19 plenum, chair of the House finance committee Christiana Erotokritou said either some or all of them.
The attorney-general’s office has already warned that some of the proposals have unconstitutional provisions, and could end up being thrown out later by the supreme court.
Under the government bills, state officials would receive a taxable one-time ‘gratuity’ on retirement, instead of a pension and a one-off bonus payout as is the case now.
An important caveat is that the new system for a one-time ‘gratuity’ will apply to state officials appointed after this legislation is enacted. Currently serving state officials will continue to be eligible for monthly pensions plus a one-time bonus once they retire.
On Monday, Disy MP Onoufrios Koulla underlined that the legislation tabled by the government does not address currently serving officials. This means that the pension payout age of 65 will not apply to them.
In addition, the government bills do not interfere with the simultaneous payment of salary and pension for currently serving state officials. But Disy insists on prohibiting this practice, not immediately after enactment of the law, but by a certain cutoff date.
Moreover, said Koulla, the government bills do not provide for a voluntary waiver of multiple pensions on the part of the beneficiaries.
Back in 2011 parliament had passed a law prohibiting the payment of multiple pensions to any state official – other than those listed in a 1980 law.
Under the Pensions (Certain Officials of the Republic) Law of 1980, the pensions of the president, the House speaker, ministers, junior ministers, MPs and generally of state officials are suspended if they undertake any other function or office in the Republic.
But in 2014, the 2011 law was found to be unconstitutional, on the grounds that pensions are a person’s property. However, the 1980 law itself has not been voided and is still in force.
The issue regained traction in 2023 after reveals that Christodoulides and members of his cabinet continued receiving pensions for past service in the public sector while drawing a salary for their current jobs.
Click here to change your cookie preferences