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The Audit Service for multiple pensions: How to remove the distortions

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Η Ελεγκτικor Υ πηρεσΙα για τις πολλαπλeς συντà&xi εις: Πως θα αρθοyν οι στρεβλωσεις ?

The Audit Service (EA) prepared texts for the amendment of six relevant laws concerning pensions of state officials and civil servants of the wider public sector, which were forwarded to the Director General of the Parliament on October 31, 2023 in order to remove distortions, reports the Auditor General Odysseas Michaelidis in today's announcement.

During the preparation of the relevant texts of amending legislation, the EY took into account the decision of the Supreme Court that “the expectation of obtaining a claim for a pension, born at the time of recruitment, constitutes, potentially, property and crystallizes as a property right upon completion of pensionable service in a pensionable position”.

The announcement states that the only safe option is for the distortions to be adjusted in an absolute manner for the pension to be earned after the start date of the new legislation, “however it should be absolutely respected and there will not be the slightest interference for any pension that will have been established on that date”.

It should be noted that a similar approach was followed in 2012 when pension issues for civil servants were regulated and the cut-off date was December 31, 2012.

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The Auditor notes that in the texts of the proposed legislation January 1, 2024 has been introduced as a stop date. If the legislation is passed in early 2024, March 1, 2024 should be set as a stop date, he clarifies.

< p>Based on the proposed texts, the pension earned by Ministers, Deputy Ministers of Parliament and Mayors from January 1, 2024 onwards, will be paid at their 65th year of age (the one established before that date will be paid at the 60th year, as the legislation currently provides).

Also, anyone who retires from a public office or position after January 1, 2024 and assumes another public office or position in Cyprus or in an institution of the European Union, the payment of his pension earned after January 1, 2024 will be suspended.

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For persons who receive a pension due to service in the offices of the President of the Republic, Speaker of the Parliament, Minister, Deputy Minister and Member of Parliament, it is already provided in the legislation that this is suspended if they are appointed to another public office or position in Cyprus and this also concerns a pension established before January 1, 2024 in this office.

According to the Auditor General, a maximum pension limit is introduced in case of service in more than one office or position in the Republic , so that the cumulative pension from all offices and positions earned after January 1, 2024 does not exceed the limit of 2/3 of the highest salaries. Any pension previously established is not affected and will be paid additionally.

EY notes that “it is our view that the House of Representatives, exercising its sovereign power, may at last remove the distortions which are rightly considered a challenge from civil society”.

Source: 24h.com.cy

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