{"text_format":"2","workbook":"xlsx","n_sheets":3,"sheets":["Cyprus","Sheet2","Sheet3"],"not_rendered":{"charts":0,"images":0,"macros":0,"external_links":0,"defined_names":2,"comments":1,"pivot_tables":0},"unopened":[],"bounds":{"document_bytes":16777216,"sheet_cells":100000,"run_cost":"one","rows_first":2000,"rows_last":500,"rows_between":2000,"halvings":0,"cell_chars":16384,"cell_head_chars":4096},"cells_cut":0,"cells_raw":0,"read":"whole","date_system":"1900"}

{"sheet":"Cyprus","index":0,"n_rows":19,"n_cols":18,"rows_kept":19,"cut":false,"hidden":false,"merged":[]}
[null,"OLD PILLAR CLASSIFICATION ","LOCAL PRODUCT NAME                                                      CURRENT PENSION SYSTEMS IN CYPRUS","COUNTRY","PUBLIC / PRIVATE INITIATIVE","MANDATORY &/OR VOLUNTARY","PAYG &/OR FUNDED - COMMENTS ","PAYG &/OR FUNDED ","COLLECTIVE / INDIVIDUAL               /OCCUPATIONAL","PRODUCT PROVIDERS ","LUMP SUM / ANNUITY                 PAY OUT OPTION ","TAX DEDUCTIBLE CONTRIBUTIONS ","PRIMARY ILLIQUID UNTIL RETIREMENT","FURTHER CHARACTERISTICS ","BIOMETRIC RISK ","INVESTMENT RISK ","PAYMENTS STOP AT DEATH","INDEXATION"]
[]
[1,"Pillar 1","General Social Insurance Scheme","Cyprus","Public ","Mandatory","The General Social Insurance Scheme is funded by contributions from employers, employees, self-employed persons and the Government. Contribution rates for employed persons are 13.6% of their insurable earnings, shared equally between the employer and the employee. Self-employed persons are also covered under the General Social Insurance Scheme contributing 12.6% of their stated insurable earnings (with a minimum applied according to profession). The central government contributes the equivalent of 4.3% of insurable earnings for both employed and self-employed persons. This Statutory General Social Insurance Scheme is compulsory for every person gainfully employed or self-employed and is linked to insurable earnings and calculated by applying a set formula.","PAYG","Collective","Government","Annuity","Contributions are tax-deductible. It is noted however that the sum of  the tax–deductible contributions paid for (i) life insurance, (ii) social insurance, (iii) occupational pension fund, (iv) health insurance, must not exceed 1/6th of a person’s total annual gross income. If it does, any amount in excess is not tax-deductible.","Yes","Under the scheme a fund is established out of which the Old Age Pension is paid. Old Age Pensions under the General Social Insurance Scheme represent the main source of incomes for retirees. The pensionable age under the General Social Insurance Scheme is 65 years for both men and women; however, an insured person is entitled to Old Age Pension at the age of 63 years if: (i) he or she has paid contributions in at least three years and his/her insurable earnings in the lower band are not less than 156 times the weekly basic earnings, and (ii) has a weekly average of insurable earnings (paid or credited) in the lower band at least 70% of the weekly amount of the basic insurable earnings (paid or credited). Retiring before reaching the pensionable age of 65 under  the General Social Insurance Scheme is very common, as the majority of existing retirees fulfill these criteria. Furthermore, apart from the Old Age Pension the General Social Insurance Scheme also provides the following benefits: (1) Unemployement Benefits, (2) Sickness Benefits, (3) Maternity Grant, (4) Matternity Allowance, (5) Marriage Grant, (6) Funeral Grant, (7) Orphan's Benefit.","Yes ","Currently No","Yes, but if there is a surviving spouce it is converted to widower's pension","Yes "]
[]
[2,"Pillar 1","Social Pension Scheme ","Cyprus","Public ","Mandatory","The Social Pension Scheme closes the gap in accessibility to pensions by providing non-means tested pensions to those residents, of 65 years or more who, for any reason did not participate in the labour market and as a consequence have no pension income either from the General Social Insurance Scheme or from any other source. The rate of Social Pension is equivalent to 81% of the full basic social insurance pension, and as a consequence, is automatically indexed to earnings","PAYG","Collective","Government","Annuity","Contributions are tax-deductible. It is noted however that the sum of  the tax–deductible contributions paid for (i) life insurance, (ii) social insurance, (iii) occupational pension fund, (iv) health insurance, must not exceed 1/6th of a person’s total annual gross income. If it does, any amount in excess is not tax-deductible.","Yes","The Social Pension Scheme is paid by the Central Government Fund.","Yes ","No ","Yes","Yes "]
[]
[3,"Pillar 1","The Special Allowance Scheme","Cyprus","Public ","Mandatory","This is an allowance paid to pensioners whose total household income does not exceed a certain amount. This is paid from the Central Government fund ","PAYG","Collective","Government","Allowance","Contributions are tax-deductible. It is noted however that the sum of  the tax–deductible contributions paid for (i) life insurance, (ii) social insurance, (iii) occupational pension fund, (iv) health insurance, must not exceed 1/6th of a person’s total annual gross income. If it does, any amount in excess is not tax-deductible.","Yes",null,"Yes","No ","N/A, relates to household","Readjusted by political decision "]
[]
[4,"Pillar 2","The Government Employees Pension Scheme","Cyprus","Public ","Mandatory","The Government Employees Pension Scheme provides retirement pension to civil servants  and their survivors (widows and dependent children), members of the educational service, the police and the armed forces. It is financed almost entirely by general Government budget on a pay-as-you go basis. Pensions are calculated on the final salary at an accrual rate that produces a retirement benefit equivalent to two thirds of that salary after 33 1/3 years of service. This is closed now to new members. Furthermore, a new mesure has been agreed whereby Government Employees will contribute 3% of their salaries towards their pension and also their contribution towards the widower's benefit has been increased by 1.25% from 0.75% to 2%.","PAYG","Collective","Government","Lump Sum                and Annuity","Contributions are tax-deductible. It is noted however that the sum of  the tax–deductible contributions paid for (i) life insurance, (ii) social insurance, (iii) occupational pension fund, (iv) health insurance, must not exceed 1/6th of a person’s total annual gross income. If it does, any amount in excess is not tax-deductible.","Yes","Provisions are made in the Government budgets by Book Reserving. ","Yes","No ","Yes, but if there is a surviving spouse or dependent minors then this is converted to pension for widows &/or dependent chrildren","Yes "]
[]
[5,"Pillar 2","Other Public Sector Employees Pension Schemes (semi Governmental)","Cyprus","Public ","Mandatory","These are occupational pension schemes that provide cover to permanent employees of public utility organizations, local governments and of other public law authorities under the same terms and conditions as for civil servants. The benefits and the entitlement conditions are same as for central government employees.","Funded and some funded through book reserve","Occupational","Private but in some cases the shortfall is guaranteed by the Government  ","Lump Sum                and Annuity","Contributions are tax-deductible. It is noted however that the sum of  the tax–deductible contributions paid for (i) life insurance, (ii) social insurance, (iii) occupational pension fund, (iv) health insurance, must not exceed 1/6th of a person’s total annual gross income. If it does, any amount in excess is not tax-deductible.","Yes",null,"Yes","Yes","Yes, but if there is a surviving spouse or dependent minors then this is converted to pension for widows &/or dependent chrildren","Yes "]
[]
[6,"Pillar 2","The Voluntary Provident Funds and other occupational collective arrangements","Cyprus","Private ","Voluntary","Provident Funds are arrangements that are agreed mainly within the framework of the system of free collective bargaining and mainly cover the private sector employees. They provide defined contribution lump sum benefits. However for certain categories of employees (e.g. bank employees, employees of oil companies, government manual workers), the Provident Fund is combined with a defined benefit lump-sum based on the recent salary and the employee receives the higher of the two amounts.","Funded","Occupational","Private","Lump Sum ","Contributions are tax-deductible. It is noted however that the sum of  the tax–deductible contributions paid for (i) life insurance, (ii) social insurance, (iii) occupational pension fund, (iv) health insurance, must not exceed 1/6th of a person’s total annual gross income. If it does, any amount in excess is not tax-deductible.\n","Not entirelly","Under the current legislation almost all Provident Funds pay out 100% of pension benefits as a lump sum as there is a distinct tax advantage in doing so (pensions must be included in the pensioners’ income  and are thus liable to income tax). The benefits from a Provident Fund are usually paid out in cash to an employee leaving the services of a company operating the scheme, i.e. they are not transferred to another scheme or kept to be paid on retirement or death. Furthermore, the rules governing most Provident Funds in Cyprus allow for loans to their members in some instances and, as a result, of pension benefits actually paid to members upon retirement may be limited.","No","Yes ","Yes, and lump sum goes to the deceased estate ","No "]
[]
[7,"Pillar 2","Occupational Retirement Provisions","Cyprus","Private","Voluntary ","Following the relevant EU Directive, a law has been passed recently allowing for Occupational Retirement Provisions but the tax treatment of such schemes has not yet been clarified, a factor that has been holding back their offering. Furthermore, it has not been clarified yet how insurance companies will be transacting such business. There is a dialogue with Government authorities on both issues ","Funded ","Occupational","Insurance Companies"]
[]
[8,"Pillar 3","Individual Insurance Pension Plans","Cyprus","Private","Voluntary ","These schemes are individual insurance plans funded by the insured’s regular premiums that may also give a choice between investing in different investment schemes. They may provide that the accumulated policy value is paid only in the form of an Annuity (pension) upon retirement, or allow the insured to choose between annuity and lump sum . They are illiquid until retirement and do not include life cover.","Funded","Individual","Insurance Companies","Lump Sum                 Or Annuity","The tax treatment of such schemes has not been clarified. Regulations are pending for quite a long time now and thus such schemes are often in a disadvantage vis-a-vis life insurance schemes with retirement characteristics that pay the accumulated policy value as a tax-free lump sum upon retirement and/or allow for a cash surrender before retirement. ","Yes",null,"Yes","Yes","It depends on the specific policy terms.","It depends on the terms of the plan chosen "]
[]
[9,"Pillar 3","Individual Life Insurance Schemes with Retirement Characteristics ","Cyprus","Private","Voluntary ","Individual Life Insurance Schemes with Retirement Characteristics - Insurance Pension Plans funded by the insured’s regular premiums that usually give a choice between investing in different investment schemes. They pay the accumulated policy value as a tax-free lump sum upon retirement (retirement age chosen by insured) or  allow the insured to choose between lump sum or annuity .These products are generally liquid, although a few may have some limited surrender restrictions (i.e no surrender in the first 2 years, or before 50 years old). \nSuch schemes also include life cover, in order for premiums to qualify for tax exemption. ","Funded","Individual ","Insurance Companies","Lump Sum and/or Annuity ","Premiums paid are tax deductible, provided that (a) the annual premiums paid do not exceed 7% of the insured amount (any amount in excess is not tax-deductible), and (b) the sum of  the tax–deductible contributions for (i) life insurance, (ii) social insurance, (iii) pension/provident funds, (iv) health insurance, does not exceed 1/6th of a person’s total annual gross income. If it does, any amount in excess is not tax-deductible.","No","Such schemes also include life cover, in order for premiums to qualify for tax exemption. As such their investment performance ceteris paribus, cannot be superior to the investement performance of an individual insurance Pension Plan. Other than that however, they provide superior tax advantages on the benefit pay out as well as more flexibilty compared to Individual Inusrance Pension Plans.","Yes","Yes","It depends on the specific policy terms.","It depends on the terms of the plan chosen "]

{"sheet":"Sheet2","index":1,"n_rows":0,"n_cols":0,"rows_kept":0,"cut":false,"hidden":false,"merged":[]}

{"sheet":"Sheet3","index":2,"n_rows":0,"n_cols":0,"rows_kept":0,"cut":false,"hidden":false,"merged":[]}