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Government approves pension reform plan


The government on 20 April approved draft legislation lifting the retirement age to an equal 67 years for both men and women, up from 65 and 60 years at the moment, respectively. The reform, to be phased in gradually from 2013 until 2020 for men and until 2040 for women, is a central part of the government’s programme of fiscal consolidation measures outlined in November, designed to ensure long-term sustainability of the country’s public finances.

One important concession from the original proposal are so-called “partial pensions”, an early option available to men at 65 years with at least 40 years of premium payment and to women at 62 years with minimally 35 years of premium payment.

The government also approved a related reform of the pension system of the uniformed forces. The proposal, less radical than previously indicated, increases the mandatory working period by 10 years to 25 years and sets the minimum retirement age at 55 years. It will apply to new workers only.

Both bills now go before Parliament.

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