Our View: Political pension overhaul long overdue

For years, people have been complaining about the scandal of the multiple pensions collected by politicians and state officials. Some of these officials, having served in different posts, were collecting state pensions in excess of €10,000 month and when there was an attempt to rationalise this outrageous arrangement, they appealed and won, with the court ruling that a pension was a property right of the recipient that could not cancelled.

The same legal reasoning applied there was an attempt to stop individuals who were appointed to a state position and were being paid a state salary while also drawing a state pension. The president and his finance minister currently enjoy this privilege, but the government, under public pressure has prepared law proposals to rationalise the matter. Meanwhile, the auditor-general disapproved of these and prepared his own six law proposals that were to be submitted to the House by deputies from four different parties.

A seventh proposal was prepared by Akel deputy Irini Charalambidou, by which any pensions exceeding €70,000 per year would be taxed at a rate of 90 per cent. In other words, despite all these law proposals the multiple pensions would continue to be paid if deputies expect the pension income of some officials to exceed €70,000 per year. Meanwhile, Diko and Disy deputies, frustrated by the restrictions placed by the law on rationalising pensions came up with the proposal of naming and shaming state officials who refused to donate their monthly state pension to a charity, while collecting a state salary.

Several laws attempting to regulate the matter have been ruled unconstitutional by the supreme court, but it is very difficult to believe that there is a lawful way of settling the matter. Even if it cannot be done retroactively because state pensions have been ruled personal property by the courts, the state could redraft state pension rules setting a ceiling on what could be paid from now on. No state pension should be paid before a person reaches retirement age, which is 65. Why are former ministers, deputies and appointees to state commissions paid a state pension at 60? Is it because they have a more taxing work life than anyone else?

No, it is because our political class has always looked after the interests of its members. The retirement bonus and pension paid to a deputy for two terms (ten years), is unjustifiably high. In the public sector someone would need more than 30 years of service to enjoy such a benefit. Need we mention that deputies are paid about €2,000 a month as a tax-free allowance which nevertheless is included when their pension is calculated.

Is it realistic to expect the beneficiaries of these privileges to vote for their abolition? We doubt it, which is why the multiple pensions and other perks of the political class are unlikely to ever end, no matter how many law proposals are tabled in the House for discussion.