Dialogos

Pension Reform and State Debt: AKEL Demands Clear Answers from the Government

Published January 26, 2026, 14:02
Pension Reform and State Debt: AKEL Demands Clear Answers from the Government

The Minister of Labour and Social Insurance, Marinos Mousiouttas, presented the Social Insurance Fund (SIF) budget to the Parliamentary Committee on Finance, announcing that the pension reform is expected to take effect on January 1, 2027, if approved by the Parliament. The aim of the reform is to resolve existing distortions and increase pensions and benefits. The Minister informed the committee that the state's debt to the SIF amounts to €11.3 billion, while the total debt to all Funds reaches €12.8 billion. MPs requested detailed information on the evolution of the debt under each administration and a specific repayment plan, which will be discussed within the framework of the reform. The SIF budget for 2026 forecasts revenues of €3,769,782,936 and expenditures of €2,743,074,164, with an estimated surplus of €1.03 billion. Revenues mainly come from contributions, while expenditures cover pensions, benefits, and administrative costs. 95% of SIF deposits are held in the General Treasury with an interest rate of 2.15%. In addition, the budgets for the Leave Fund, the Insolvency Fund, and the Surplus Fund were presented, all of which are also in surplus. AKEL is requesting clear answers from the government regarding the reform and the repayment of the debt.