The Federation of Employers and Industrialists (OEB) expresses strong concern about public statements suggesting increases in pensions to levels that are out of economic reality.
The public debate on such a critical issue cannot be based on oversimplified approaches or on the cultivation of the impression that there are “magic solutions”. The reality is indisputable: a drastic increase in pensions presupposes either an increase in contributions or an increase in the retirement age, or a combination of both.
Any other approaches create expectations that cannot be realized, since they are based on unrealistic data.
OEB will never consent to mortgage the present and the future of the Cypriot economy, through proposals that ignore economic and fiscal realities.
Decisions on the pension system must be designed responsibly, seriously and with a long-term horizon. And pensions should be increased at the rates allowed by economic growth and the internationally accepted best rules that regulate the issue and which impose that the amount of pensions is proportional to the amount of contributions on the basis of the principles of proportionality. With this pursuit, OEB and its partners cooperate with the Ministry of Labor and specialized professionals from Cyprus and international organizations.
We call on everyone to leave the management of this vital issue to the competent institutions of tripartite cooperation and the Social Partners, who have the responsibility of financing and ensuring the sustainability of the system for the benefit of current and future generations.
If the State wishes to further improve its social policy, it cannot do so with the Social Insurance Fund or with the second pillar of the pension system.
