[Cyprus Times] In the Epi. Finance Minister tomorrow on the professional pension benefits plan in the public and wider public sector

The Minister of Finance will appear before the Finance Committee on Monday for the professional plan of pension benefits in the public and wider public sector, 20 June, where the government bill on the occupational pension benefits plan for employees in the public and wider public sector, including local government authorities, will be discussed.[/P]

The bill covers all serving employees who were recruited or appointed after 1/10/2011 and those permanent employees who will be appointed to a position for the first time on or after the effective date of the Act.

In addition, the government bill on the pension benefits plan for state and wider public sector employees, including local government authorities, will be debated.

The bill repeals the measure relating to the taxation of the lump sum with retroactive effect from 1 January 2021 for members of the existing government pension scheme and members of schemes in the wider public sector that are similar to it, and reinserts serving newly appointed judges back into the existing government pension scheme, with retroactive effect from 1 October 2011.

Specifically for the occupational pension benefit plan, a new special pension benefit payment fund will be created which will be funded by both the employer and the employee in an amount equal to 5% of the member's monthly pensionable earnings.

The funding percentage may be adjusted in the future following appropriate actuarial studies.

In statements after the Cabinet meeting that approved the bill, Finance Minister Constantinos Petrides said the plan covers all employees who are employed for an indefinite period in the state service and in the wider public sector, local government, special police officers who have been made permanent as special police officers under the law, contracted non-commissioned officers and forestry college graduates.

He noted that the design of the new occupational pension benefit plan is rooted in the philosophy of the operation of provident funds.

It is a plan that is not like the previous plan that was in place before 2011, in which benefits depended on final salary, but is a plan that depends on contributions, he added.

He said that this ensures both the sustainability of the public finances and the rights of the employee.

Specifically, members of the Plan are all permanent employees serving on the effective date of this Act who were first appointed to a position on or after October 1, 2011, and who had not served in any position prior to that date.

All permanent employees first appointed to a position on or after the effective date of this Act who were not serving in any position prior to that date.

All those serving, on the effective date of this Act, as permanent employees in the State Service and in the Wider Public Sector, special police officers who have been made permanent as special police officers under the relevant legislation, contractual non-commissioned officers and graduates of the Forestry College employed under a fixed-term employment contract. The date of inclusion of the aforementioned employees is 1.1.2021.

All employees who, on or after the date of entry into force of the Act, will become permanent employees in the State Service and in the Wider Public Sector. Such employees will be included in the Scheme on the date of conversion of their employment contract to an indefinite period.

Also, all persons who, on or after the date of entry into force of the Act, will become permanent as special police officers under the relevant legislation. Such persons shall be included in the Scheme on the date of their tenure as special constables.

Source: KYPE

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