02/12/2003 08:34
With a complementary budget submitted to Parliament on Monday, Cypriot taxpayers are asked to pay the amount of £7.9 million for the subsidy of the Pension Scheme of the CYTA employees. On the meeting of the House Finance Committee held on Monday, the members expressed their surprise on the fact that the state subsidizes the Pension Scheme of the semi-governmental organization so as to maintain the high pension fees of the staff in the future.
The additional deficit of £7.9 million derives from the fact that
First, the pension fees of the one thousand pensioners (£12 million, that is, £1000 p.m each) increase year by year, and
Second, the increase in salaries for the past few years is higher than the return of deposits in the commercial banks.
The deficit is, therefore, covered by the state within the framework of the new union contract (2/10/2002) signed by the trade unions and the CYTA Board of Directors.
Change the investment policy
The House Finance Committee has requested the “amendment of the existing investment policy” of CYTA, so that the Pension Scheme becomes self-supported. According to CYTA Annual Report 2002, the Scheme’s assets include shares, warrants and bonds, the value of which amounts to £128 million (2001: £120 million). The total value of CYTA’s pension schemes stand at £269 million.
The Committee also requested that the Board of Directors examines ways of consolidation and viability of the Scheme by either proceeding to a general restructuring of the pensions, or reducing the general salaries.
AKEL MP, Yiannos Lamaris warned that the Parliament will not accept the possibility that “these changes apply to the newcomers”, while AKEL MP, Stavros Evagorou, said that CYTA must proceed to a moratorium in employment. Similarly, DIKO MP, Zacharias Koulias said that this is a provocation for the private sector employees.
On the other hand, Board Chairman, Stavros Kremmos said that the Organization is considering increasing the pensioning limit from 60 to 63 years and admitted that the Plan runs the risk of collapse in the near future.
The additional deficit of £7.9 million derives from the fact that
First, the pension fees of the one thousand pensioners (£12 million, that is, £1000 p.m each) increase year by year, and
Second, the increase in salaries for the past few years is higher than the return of deposits in the commercial banks.
The deficit is, therefore, covered by the state within the framework of the new union contract (2/10/2002) signed by the trade unions and the CYTA Board of Directors.
Change the investment policy
The House Finance Committee has requested the “amendment of the existing investment policy” of CYTA, so that the Pension Scheme becomes self-supported. According to CYTA Annual Report 2002, the Scheme’s assets include shares, warrants and bonds, the value of which amounts to £128 million (2001: £120 million). The total value of CYTA’s pension schemes stand at £269 million.
The Committee also requested that the Board of Directors examines ways of consolidation and viability of the Scheme by either proceeding to a general restructuring of the pensions, or reducing the general salaries.
AKEL MP, Yiannos Lamaris warned that the Parliament will not accept the possibility that “these changes apply to the newcomers”, while AKEL MP, Stavros Evagorou, said that CYTA must proceed to a moratorium in employment. Similarly, DIKO MP, Zacharias Koulias said that this is a provocation for the private sector employees.
On the other hand, Board Chairman, Stavros Kremmos said that the Organization is considering increasing the pensioning limit from 60 to 63 years and admitted that the Plan runs the risk of collapse in the near future.
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