Provident funds will take three to four years to introduce, experts have told the government, even as talks with unions and employers on the second pillar of pension reform move to a weekly schedule.
“Our intention is for it to proceed as soon as possible”. Labour Minister Marinos Mousiouttas said, after the ministry presented a comparative table of the social partners’ positions at a meeting of the labour advisory body.
The second pillar covers occupational pension schemes, including provident funds, which are meant to give future pensioners an income on top of the state pension.
Mousiouttas said the table was drawn up to identify where the partners agree and differ, “and so that we can then move forward”.
The advisory body will now meet weekly, which Mousiouttas said would allow talks to move ahead “as quickly as possible” and produce an agreement that would be turned into any legislation required.
He said timelines should be set for the experts who will draft the legal framework, so that the second pillar can become law and once approved, enter into force.
The reform aims to raise pensions, particularly the lowest, and to count periods spent caring for children or relatives, living with a disability and studying towards entitlements.
It would also end government borrowing from the social insurance fund and begin gradual repayment of the state’s debt to it.
The fund’s reserves stand at about €12 billion, with future surpluses to be invested under a transparent supervisory framework.
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