Alpha News

Radical Pension Reform: New Bill to be Submitted to Parliament Soon

Published February 16, 2026, 12:32

The government is promoting a radical reform of the pension system, aiming to submit the relevant bill to Parliament before the summer recess. The Minister of Labor, Marinos Mousiouttas, presented the framework of the changes, prioritizing the immediate settlement of the “First Pillar” of the reform, namely pensions. Despite the reservations of some social partners, the government insists on prioritizing the first pillar, as the implementation of the second (pension funds) requires more time. A schedule has already been set for occupational pension schemes, aiming for rapid implementation. A significant change is the revision of the pension calculation formula, with a reduction or scaling of the 12% actuarial adjustment for those retiring at age 63. Also, the permanent reduction of the pension is abolished and its return to the full pension is foreseen after a specific age limit. Particular emphasis is placed on strengthening low-income pensioners, with the aim of ensuring adequate benefits above the poverty line. The unification of payments into a single transfer is planned. Regarding the Social Insurance Fund, the government is committed to low-risk investments.