The six pieces of legislation passed by the House of Representatives on multiple pensions have been published in the Government Gazette, after the President of the Republic Nikos Christodoulides signed them following the changes voted in by MPs.
More specifically, the amended Municipalities Law, the Occupational Pension Benefits Scheme for Civil Servants and the Wider Public Sector, including Local Government Authorities, the Pension Benefits Scheme for Civil Servants and the Wider Public Sector, including Local Government Authorities, the Pensions (Certain Officials of the Republic), the Pensions of the President and Members of the Public Service Committee and the Pensions of the President and Members of the Educational Service Committee were published in the Gazette on 21 August.
Initially, the President had referred to the legislation passed by Parliament back to the House, requesting specific changes so that they would not be deemed unconstitutional.
Although the Members of Parliament did not vote in their entirety on the suggestions proposed by the executive branch, the President ultimately did not refer the legislation to the Supreme Court, but signed it and upon its publication in the Government Gazette, it entered into force.
The framework creates a new reality for the multiple pensions of officials who will be appointed in the future, excluding those who are already serving or have served and have vested rights.
The original laws and the reference
Based on the original laws, significant changes were foreseen in the retirement regime of state officials, such as increasing the age limit from 60 to 65 for Ministers, Deputy Ministers, Members of Parliament, mayors and members of the Public Service Commission and Educational Service Commission.
They also included provisions for the suspension of pensions in the event of taking up a new position and the netting of pensions for multiple terms of office, while the right to payment of established pensions was maintained. The Accountant General was authorised to determine the distribution of the amounts through circulars.
The President of the Republic dismissed the laws, judging that they violate constitutional provisions. He raised the issue of unequal treatment of persons in similar circumstances, which is contrary to Article 28 on equality before the law.
Furthermore, the suspension or limitation of pensions for those taking up new positions after retirement was considered a violation of Article 23, which protects property, including pensions.
A violation of Article 26 on freedom of contract was also found, since the provisions overturned terms of existing agreements. An issue also arose regarding the potential influence of existing judges and members of the Supreme Court if they were appointed to other positions, which violates Articles 158.3 and 124.4.
At the same time, it was judged that the laws interfere with the responsibilities of the executive branch, violating the separation of powers.
There were also objections to the power of the Accountant General to determine the method of pension distribution through circulars, in violation of Article 127, which establishes a strict legal framework for public finances.
Furthermore, the inclusion of the Governor of the Central Bank in the appointment of the positions was considered to violate the obligation of prior consultation with the ECB. Finally, it was pointed out that the implementation of the legislation would entail increased administrative costs.
The changes and the exclusion of more officials
On 5 August, the Parliament proceeded with a series of amendments that it considered would remove constitutional problems and ensure better implementation of the laws.
Specifically, the definition of the term "office, function or position in the Republic" was re-formulated to cover all positions in the public and broader public sector.
The current Attorney General and the Assistant Attorney General, current judges, members of the Supreme Court and the Governor of the Central Bank were also explicitly excluded from the regulations, in order to protect their terms of service, as provided for by the Constitution and relevant European legislation.
It is clarified that this exception concerns exclusively those who already hold the specific offices and positions, in the event that they assume a new public position or office in the future. It does not apply to persons who have not yet been appointed to the specific offices.
This change was deemed necessary because it was not explicitly mentioned in the previous law that had been passed.
The power of the Accountant General to decide on the method of pension distribution was also removed and replaced with general regulations that provide for a calculation based on pensionable earnings and the proportionate period of tenure or service.
What was not accepted
Although specific amendments were made to the legislative texts to remove constitutional obstacles, several of the Presidency's objections were not adopted.
Specifically, the Parliament did not proceed with amendments to other important objections raised in the referral. These include the claim of unequal treatment of persons belonging to the same category, the possible violation of the right to property due to a significant restriction or deprivation of pension, the interference with the terms of existing contracts, as well as the claim that the laws contain elements of an administrative nature that relate to the executive branch.
Also, the argument regarding the increase in administrative costs for the implementation of the new framework was not accepted.
A special discussion took place in Parliament about the minimum wage mechanism, providing for the payment of only the first 500 euros from the pension when someone assumes office, suspending the remaining amount, which ultimately remained in the law.
Based on the relevant report of the competent Finance Committee of the House, the amendments were made on the basis of the suggestions included in the President's letters, but only to the extent that they were deemed necessary to resolve constitutional issues.
(Source: InBusinessNews)
