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Cyprus Government Maintains Actuarial Reduction For Early Retirement

by THEFUTURE.TEAM

July 17, 2024

In a recent announcement, Cyprus’s Labour Minister, Yiannis Panayiotou, reaffirmed the government’s decision to retain the 12% actuarial reduction for early retirement. Addressing the Social Insurance Council, Panayiotou emphasized the financial implications of abolishing this reduction, estimating an additional annual burden of €100 million on the Social Insurance Fund.

Financial and Social Implications

The actuarial reduction was initially implemented to ensure the sustainability of the Social Insurance Fund by discouraging early retirement and spreading the financial responsibility more evenly across the workforce. The removal of this reduction, according to Panayiotou, would effectively lower the retirement age, which could lead to significant financial strain on the fund, potentially compromising its ability to support future retirees.

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Panayiotou highlighted the government’s commitment to fiscal responsibility, indicating that any changes to the retirement system must consider the long-term financial health of the Social Insurance Fund. The minister underscored that the current system, while strict, is designed to maintain a balanced and sustainable retirement framework for all citizens.

Focus on Targeted Relief

While the 12% reduction will remain in place, the government is open to providing targeted relief for specific groups, particularly long-serving manual workers who may be disproportionately affected by the current regulations. These discussions aim to address the unique challenges faced by this demographic without undermining the overall sustainability of the retirement system.

The ministry’s approach seeks to strike a balance between supporting vulnerable workers and maintaining the financial integrity of the Social Insurance Fund. This targeted relief could include adjustments to the actuarial reduction for those with extensive years of service in physically demanding jobs, potentially allowing them to retire with reduced penalties.

Ongoing Discussions

Panayiotou acknowledged that discussions with social partners are ongoing, intending to reach a consensus that balances the needs of workers with the financial realities faced by the government. The minister expressed optimism that a mutually agreeable solution can be found, one that provides necessary support to those in need while preserving the fund’s stability.

The government’s steadfast position on maintaining the actuarial reduction reflects a broader commitment to prudent economic management and long-term sustainability. By focusing on targeted relief rather than broad changes, Cyprus aims to support its workforce effectively without compromising its financial obligations.

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Call for Reform: Cyprus Faces New Challenges with Emerging Tobacco Products

by News Editor

May 31, 2025

In the face of a burgeoning variety of tobacco products, existing smoking laws in Cyprus are struggling to keep pace, as highlighted by Christos Minas, the president of the Cyprus National Addictions Authority (AAEK). On World No-Tobacco Day, there was a push for legislative reforms to comprehensively cover all tobacco forms, including non-nicotine alternatives.

Addressing Rising Trends with Effective Policies

Minas emphasized the surge in popularity of e-cigarettes and flavored products, particularly among the youth. The proposed legal updates aim to enhance enforcement efficiency against these emerging trends.

In collaboration with the World Health Organization’s (WHO) framework, the AAEK has established the first set of national guidelines for smoking cessation in Cyprus, crafting prevention and treatment strategies based on robust scientific evidence.

Educating Youth and Public Awareness Initiatives

Efforts are underway to raise awareness, with informative materials distributed to secondary schools across Cyprus. A public event in Nicosia highlighted the state’s ongoing commitment, providing carbon monoxide testing and expert advice on new tobacco products.

Recent data from the Cyprus general population survey 2023 indicates that 38% of smokers have used e-cigarettes recently, and the smoking initiation age remains at 18.

A Glimpse into Youth Smoking Patterns

According to the latest European school survey, 14% of Cypriot students aged 15-16 reported smoking traditional cigarettes last month. Although this rate is declining, Cyprus still ranks high in Europe for e-cigarette and hookah use among students.

The concern is global, with WHO reports showing over 37 million children aged 13-15 engage in tobacco use, driven by aggressive marketing in loosely regulated environments.

The urgency for reform is clear: before these trends solidify, proactive measures are necessary to protect future generations from potentially hazardous habits.