Trade union hits out at exclusion from pension reform talks

Trade union Isotita has submitted a memorandum to both the ministers of Finance and Labour, raising concerns over its exclusion from consultations on pension system reform.

The union, which represents thousands of public and semi-government employees regardless of contract type, said it had been left out of discussions within the Labour Advisory Body as well as other institutional consultation forums.

These include the Joint Staff Committees, from which Isotita said it had also been excluded despite its broad representation.

In the memorandum, the union referred to “major issues of legal, actuarial and social justice” that directly affect the “fundamental, constitutionally guaranteed rights of tens of thousands of employees“.

It also pointed to “serious distortions” it has identified within the system, which it said have had a significantly negative impact on the rights and pension benefits of thousands of its members.

“These distortions have been intensified and partly entrenched due to the absence of an independent supervisory authority for the special fund for the payment of pension benefits,” it added.

Isotita further stated that its memorandum is based on “a comprehensive legal and actuarial analysis of the current legislative framework”, including multiple national and European provisions.

Specifically, it cited Law 210(I)/2022, the Social Insurance Law 59(I)/2010, the Pensions Law 97(I)/1997 and Law 216(I)/2012 as part of its review.

The union also referenced established case law of the Supreme Constitutional Court’s plenary, with particular emphasis on the 2014 Koutselini-Ioannidou and others versus the Republic of Cyprus ruling.

In addition, it drew on European Union law, including Directive 2016/2341 on institutions for occupational retirement provision, to support its position.