The Pension Law of 1997 (97(I)/1997)

PART I INTRODUCTORY PROVISIONS
Short title

1. The Pensions Laws of 1997 to 1999 shall be referred to together as the Pensions Laws of 1997 to 1999.

97(I)/1997
Interpretation

2. In this Law, unless the context otherwise requires-

“Higher Education” includes the Pedagogical Academy;

“insurable earnings” has the meaning assigned to the term by the Social Insurance Laws;

“Public Educational Service” includes the positions of inspectors, principals, assistant principals, professors and teachers as well as any positions specified in the relevant law or as may be determined by the Council of Ministers;

“Public Service” has the meaning assigned to this term by the Public Service Laws and includes the Auditor General, the Accountant General and their Assistants;

“Public Secondary School” means a school, the administration and maintenance of which is the responsibility of the Republic and which is not governed by any other law and includes a school declared by decision of the Council of Ministers as a public school for the purposes of the Law;

“civil servant” has the meaning assigned to this term by the Civil Service Laws;

“teacher” means-

(a) the teacher appointed in accordance with the Law for service in public elementary schools and includes a Director and the holder of any other position in the Public Educational Service which the Council of Ministers shall designate; and

(b) the teacher appointed by the Ephorate of Armenian Schools of Cyprus for service in an Armenian primary school of Cyprus;

“Armed Forces of the Republic” means the National Guard established under the National Guard Laws and includes any other force that the Council of Ministers declares to be “Armed Forces of the Republic”;

“Application Form” means the Forms prescribed by the Accountant General for the transfer of pension benefits to and from the civil servants’ pension scheme;

“Curator” includes a school secretary, accountant, librarian, childminder and caretaker;

“European Union” means the Council, the European Parliament, the European Commission, the Court of Justice of the European Union, the Court of Auditors, the Economic and Social Committee, the Committee of the Regions, the European Ombudsman, the European Data Protection Supervisor, the European Central Bank, as well as any body or office or institution or agency established or to be established in the future under the Treaty on European Union or the Treaty on the Functioning of the European Union or any legislative act, the Staff Regulations of which contain or will contain provisions identical or analogous to those in Annex VIII, Article 11, of Regulation (EC and Euratom) No 11 and 31/1962.

“Fundamental service” means the period taken into account in determining whether an employee is entitled, by reason of length of service, to a pension, gratuity or other benefit and includes the period from the date on which the employee begins to receive salary for service in a government position until the date on which he leaves government service, without deducting any period of absence on leave without pay;

“Medical Officer” means a person holding a pensionable position in the Public Service for which the relevant service plan requires mandatory registration in the Cyprus Medical Register;

“Private Secondary School” means a private secondary or higher education school in Cyprus registered in the Register of Private Schools under the relevant law and includes the English School;

“Professor” means an educational officer appointed for service in a secondary or higher education school and includes a technologist, instructor, assistant instructor, principal and assistant principal, inspector and the holder of any other position in the Public Educational Service which the Council of Ministers may designate;

“Regulation (EC and EURATOM) No. 11 and 31/1962” means the act of the European Community and the European Atomic Energy Community entitled “REGULATION (EEC) No. 31 and REGULATION (EURATOM) No. 11 laying down the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Economic Community and the European Atomic Energy Community” as last amended by Council Regulation (EC) No. 1296/2009 of 23 December 2009 and as further amended or replaced from time to time;

“Community Secondary School” means a secondary or higher education school in Cyprus which was administered and managed by the Greek Community Assembly or the Government of the Colony of Cyprus or a school committee or ephorate appointed by the Greek Community Assembly or the Government of the Colony of Cyprus;

“State service” means a service under the Republic and includes the public service, the service of the Auditor General, Accountant General and their Assistants, the Public Educational Service, service in the Security Forces and the Army of the Republic and service in any position in respect of which special provision is made by law;

“Government employee” or “employee” means a person holding a position in the State service;

“member of the Police” has the meaning assigned to that term in the Police Law and does not include a special police officer;

“Salary” means the annual salary and includes the indexation allowance but does not include any other allowance;

“Law” means this law;

“law” includes any provision of a legislative nature and the Budget;

“Relevant Minister” in relation to any employee, means the Minister who heads the Ministry for the employees serving in his Ministry and in any Department thereof and the Head of an Independent Office or Service for the employees of such Office or Service;

“Organization” means any legal person under public law or other public law organization without legal personality established in the public interest by a special law whose funds are guaranteed by the Republic and includes any local government authority;

“Army” has the meaning assigned to this term by the Laws on the Army of the Republic;

“Pension” means an annual pension;

“Pensionable remuneration” means the annual basic salary and indexation allowance paid to the employee on the date of his retirement and includes in the case of a Police Officer the good conduct allowance and the merit allowance and in the case of a prison guard the good conduct allowance, but does not include the thirteenth salary or any other allowance or other remuneration of any kind:

It is understood that if on 24 January 1986 a personal allowance was paid to an employee, this allowance is included in the employee’s pensionable earnings:

It is further understood that in the event of retirement or resignation of an employee on the day preceding the date of provision of an increase in the indexation allowance on the basic salary, his pensionable earnings are deemed to increase accordingly, after taking into account the new indexation increase:

It is further provided that in the event that the salary of the employee is on a scale and the employee, by the date of his retirement or resignation or death, has earned less than half of the next increment of his scale, his pensionable earnings shall be deemed increased by as many twelfths of the amount of such increment as there are months in which he served after the granting of his last increment. In the case of an employee who, by the date of his retirement, has earned not less than half of the next increment of his scale, his pensionable earnings shall be deemed increased by the full amount of the increment;

“Pensionable position” means a permanent position in the government service;

“Pensionable service” means service which is taken into account for the calculation of a pension or gratuity or other benefits under the Law. For the calculation of the total pensionable service of an employee, a period of time up to 15 days is ignored and more than 15 days is counted as a full month;

“Pensionable employee” means an employee holding a pensionable position in the government service in a permanent capacity;

“Pensioner” means a person to whom a pension was granted under Part II of the Law or any law repealed upon his retirement from government service;

“Primary education school” includes a kindergarten and a special education school;

“Primary or secondary school outside Cyprus” means a public primary, secondary or higher education school in Greece and includes a primary, secondary or higher education school of the Greek Community abroad recognized by the Greek Government as equivalent to public schools in Greece;

“Secondary School” means a public secondary school of general, technical and vocational education and includes an evening high school;

“Inflation Index” means the Retail Price Index in force from time to time;

“Indexation allowance” means the indexation allowance included in pensionable earnings;

“European Union official” means a person who has been appointed to a permanent post in the European Union by a written act of the appointing authority and whose appointment has been confirmed.”

“Service” means the period from the date on which the employee begins to receive salary for performing duties in a government position until the date on which he leaves government service, without deducting any period of absence on leave without pay;

“Contributory service” means service after the appointed day for which periodic contributions have been paid as provided for in article 41 (Periodic contributions) or service for which periodic contributions have been paid or an agreement has been made for the payment of final contributions by deduction from the lump sum gratuity on the pension as provided for in article 42 (Contributions for previous service);

“Service without contributions” means a service for which no initial or final contributions are paid as defined in article 41 (Periodic contributions);

“Benefit” or “Benefits” means a pension or a pension and a lump sum or gratuity.

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Application of this Law
3.-(1) This Law applies to all government employees.

(2) Subject to the provisions of the Constitution and the Courts Laws, this Law also applies to the members of the Judicial Service of the Republic, the Attorney General and the Assistant Attorney General.

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PART II PENSIONS AND OTHER BENEFITS
Granting retirement benefits
4.-(1) Pension, lump sum or gratuity and other benefits are granted in accordance with the provisions of this Law to state employees of the Republic of Cyprus.

(2) A pension, lump sum or gratuity granted under this Law shall be calculated in accordance with the provisions in force on the date of retirement of the civil servant.

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Debt to the Permanent Fund of the Republic

5. The account of the Permanent Fund of the Republic is debited with any pension, lump sum, gratuity or other benefit for the payment of which the Republic is liable by virtue of the Law.

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Retirement benefits are not transferable.

6. The pension, lump sum, gratuity or other benefit granted under the Law cannot be assigned or transferred and is not subject to seizure, attachment or detention for any debt or claim except-

(a) For a debt owed to the Republic of Cyprus~ or

(b) for satisfaction of an order of a competent Court for the maintenance of the wife or ex-wife or child.

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Income tax exemption

7. Any gratuity or lump sum paid under the provisions of the Law is exempt from income tax.

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Pension coefficient and lump sum
8.-(1) Subject to the provisions of the Law, a government employee who has completed five or more years of service shall be paid upon retirement in any of the cases referred to in article 9 (Cases of granting retirement benefits)-

(a) An annual pension based on a coefficient of one eight hundredth of his annual pensionable earnings on the date of his retirement for each completed month of his pensionable service; and

(b) a lump sum equal to the annual pension multiplied by fourteen and dividing the resulting amount by three:

It is understood that the annual pension paid to an employee under this Part on the date of his retirement may not exceed one-half of his annual pensionable earnings:

It is further provided that the lump sum paid to a public servant including the Auditor General and the Accountant General and their Assistants and to a member of the Police holding the rank of a police officer or above and a professor, under this Part upon his retirement-

(a) on or after the completion of his sixty-first year of age and upon completion of pensionable service of four hundred and twelve months or more, is equal to the annual pension multiplied by fourteen and a half and dividing the resulting amount by three;

(b) on or after the completion of his sixty-second year of age and upon completion of pensionable service of four hundred and twenty-four months or more, is equal to the annual pension multiplied by fifteen and the resulting amount divided by three; and

(c) upon reaching the age of sixty-three and upon completing pensionable service of four hundred and thirty-six months or more, it is equal to the annual pension multiplied by fifteen and a half and dividing the resulting amount by three.

(2) Subject to the provisions for a maximum pension rate, in the case of an employee who has served as a police officer or sergeant for more than twenty-five years, his pensionable service shall be increased by as many additional months as the months of his service over twenty-five years, with a maximum increase limit of sixty months:

It is understood that in the event of retirement of a member of the Police with the rank of police officer or sergeant-

(a) Upon reaching the age of 55; or

(b) pursuant to the provisions of paragraph (e) of article 9 (Cases of granting pension benefits) of this Law, after completing the months of service that ensure the maximum pension rate,

it will be considered that his pensionable earnings increase by an amount equal to two annual increments of his scale:

It is further understood that the provisions of this subsection shall apply only in the case of retirement of a member of the Police who holds a rank not higher than sergeant and who is serving on 10 March 2010 and who retires upon reaching the age of fifty-five or at any earlier time:

It is further provided that in the event of retirement of a member of the Police who holds a rank not higher than sergeant-

(a) who reaches the age of fifty-five between 11 March 2010 and 10 September 2011, both dates inclusive, shall be deemed to have his pensionable earnings increased by an amount equal to two annual increments of his scale. or

(b) who reaches the age of fifty-five between 11 September 2011 and 10 March 2013, both dates inclusive, his pensionable earnings shall be deemed to increase by an amount equal to one annual increment in his scale.

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Cases of granting retirement benefits

9. Subject to the provisions of the Law, a pension and a lump sum or gratuity or other benefit shall be granted to an employee upon retirement in any of the following cases:

(a) Upon reaching the mandatory retirement age or at any later time;

(b) in any case of an employee attaining the age of fifty-five years or a medical officer appointed on or after the date of commencement of the Pensions (Amendment) Law of 2001, fifty-eight years or another public servant including the Auditor General and the Accountant General and their Assistants appointed on or after the date of commencement of the Pensions (Amendment) Law of 2005, fifty-eight years or a police officer or sergeant serving on the 10th day of March 2010 fifty years or a Professor appointed on or after the date of commencement of the Pensions (Amendment) (No. 2) Law of 2010, fifty-eight years or at any later time when he is required or permitted to retire;

(c) by the abolition of his position;

(d) upon his retirement to facilitate the improvement of the organization of the service to which he belongs, thereby achieving a more efficient operation or economy;

(e) if the Public Service Commission in the case of a civil servant or the relevant Minister in the case of a member of the Public Education Service or the Security Forces or the Army is satisfied by a report of a Government Medical Council that the employee is unable to perform his duties due to mental or physical incapacity and that such incapacity is likely to be permanent;

(f) in the event of termination of the employee’s services for specific reasons of public interest in accordance with the relevant law;

(g) in the event of retirement of an employee due to unjustified incompetence or unsuitability;

(h) in the event of imposition by the competent disciplinary body of the disciplinary penalty of forced retirement;

(i) upon retirement for reasons of public interest in order for the employee to undertake a public function incompatible with the office or position held;

(j) upon retirement for reasons of public interest in order to be appointed to a public law organization or local government authority;

(k) in the event of voluntary early retirement.

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Retirement before completing five years of service

10. Except for the cases for which special provision is made in the Law, in the event of retirement of an employee, in one of the cases of article 9 (Cases of granting retirement benefits) before completing five years of service, a gratuity equal to one-tenth of his monthly pensionable earnings on the date of his retirement is paid for each completed month of pensionable service.

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Tipping female employees in certain situations

11. Notwithstanding the provisions of article 9, (Cases of granting pension benefits) if a female employee, whose appointment to a pensionable position has been ratified, if such ratification is required, and who has completed not less than three years of service, is permitted by the Public Service Commission or the Minister of Finance or the relevant Minister, as the case may be, to retire on account of marriage or imminent marriage or childbearing or adoption by her of a child not older than six years of age, she shall be granted a gratuity equal to one-twelfth of her monthly pensionable earnings on the date of retirement for each month of pensionable service, if she produces satisfactory proof of the marriage or childbearing or adoption of a child to the Accountant General of the Republic.

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Mandatory retirement age
12.-(1) Subject to the provisions of the Constitution, any other law and subsections (1A), (2), (3), (4) and (4A) of this section, the compulsory retirement age of all employees shall be the age of sixty years.

(1A) The mandatory retirement age of a Professor who reaches the age of sixty on or after September 1, 2013 is sixty-three years of age:

It is understood that the mandatory retirement age of a Professor who reaches the age of sixty between September 1, 2011 and August 31, 2012, both dates inclusive, is the age of sixty-one years:

It is further understood that the mandatory retirement age of a Professor who reaches the age of sixty between September 1, 2012 and August 31, 2013, both dates inclusive, is the age of sixty-two years.

(2)(a) The mandatory retirement age of a member of the Police who holds the rank of lieutenant or above and who reaches the age of sixty on or after 11 March 2010 is sixty-one years.

(b) The mandatory retirement age of a member of the Police who holds a rank not higher than sergeant and who completes his fifty-fifth year of age on or after 11 March 2013 is the age of sixty years:

It is understood that the mandatory retirement age of a member of the Police who holds a rank not higher than sergeant and who completes his fifty-fifth year of age between 11 March 2010 and 10 September 2011, both dates inclusive, is the age of fifty-eight years:

It is further provided that the mandatory retirement age of a member of the Police who holds a rank not higher than sergeant and who completes his fifty-fifth year of age between 11 September 2011 and 10 March 2013, both dates inclusive, is the age of fifty-nine years.

(3) The mandatory retirement age for members of the Army is determined by the Army of the Republic Law and the Regulations issued thereunder.

(4) The mandatory retirement age of a medical officer who has not reached the age of sixty-three (63) years, on the date of enactment of this Law, is the age of sixty-five (65) years.

(5) An employee is considered to have reached full age on the anniversary of his birthday.

(6) Every employee retires on the first day of the month following the month in which he reaches the age of mandatory retirement:

It is understood that the Minister of Education and Culture may allow a professor or teacher who reaches the mandatory retirement age during the school year to continue serving until the end of the school year.

(7) The Council of Ministers may require an employee, if this is desirable in the public interest, to retire upon reaching an age five years below the mandatory retirement age or at any later time.

(8) The Council of Ministers may, if it is desirable in the public interest, allow an employee to remain in service after the date of his mandatory retirement age for such period as the Council of Ministers may determine.

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PART III BASIC AND PENSION SERVICE
Fundamental and pensionable service
13.-(1) Subject to the provisions of the Law, a period that is not considered as fundamental service is not considered as pensionable service.

(2) Unless otherwise specifically provided for in the Law, no period during which the employee was not in the state service shall be taken into account in the calculation of the basic or pensionable service.

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Calculation of pensionable service

14. Only service in a pensionable position is considered pensionable:

It is understood that-

(a) When a period of service in a non-pensionable position or service on a temporary or contract or probationary or casual or hourly basis is followed either immediately or after an interruption by service in a pensionable position and the appointment of the employee to a pensionable position has been confirmed, such period shall be considered pensionable~

(b) when an employee holding a pensionable position whose appointment has been ratified is seconded to a non-pensionable position and retires from a non-pensionable position, his period of service in a non-pensionable position shall be considered pensionable and his pension shall be calculated on the basis of his earnings on the date of his retirement~

(c) when an employee holding a non-pensionable position retires due to age limit or dies in service and has completed five or more years of service, he shall be deemed to hold, on the date of his retirement or death, a pensionable position for the purposes of section 8 (Pension coefficient and lump sum) and section 30 (Gratuity when the employee dies in service or after retirement) and as a “pensionable employee” for the purposes of Part V of the Law~

(d) service of an employee in the Armed Forces of the Republic which interrupts his service shall be deemed, for the purposes of this Law, to be government service. During such service the employee shall be deemed to hold the position he held before the commencement of his service in the Armed Forces of the Republic~

(e) a period during which an employee performed duties in a position following a replacement appointment is considered pensionable service if immediately before or after such service the employee holds a pensionable position in a substantive capacity~

(f) in the event of the death of an employee during service, any period of regular leave to which the employee would be entitled on the day of his death shall be considered as pensionable service.

(g) a period of absence of an employee on leave without pay shall not be considered pensionable service, unless the leave is educational leave granted by the competent authority in accordance with the regulations in force at the time or is leave granted with the approval of the Council of Ministers in the interest of education or for public policy purposes~

(h) notwithstanding the provisions of the Law or any other law, in the event of re-employment in the state service of any person who was dismissed under the provisions of the Suspension of the Pre-emption Procedure of the Certain Disciplinary Offences (Conduct of Investigation and Trial) Laws of 1977 to 1978 Law, the period during which such person was out of service shall not be taken into account for the purposes of pension or the duration of prior service or seniority or for the purposes of payment of any other benefit or compensation.

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Categories of service considered pensionable

15. Regardless of the provisions of the Law, the following categories of service are considered pensionable-

(a) Service which could be considered as pensionable under any law repealed by this Law or any other law governing the granting of a pension from the Consolidated Fund of the Republic, if such service precedes, either immediately or after the interruption of pensionable service under this Law or interrupts such service or if such service was interrupted or is interrupted by reason of study in Cyprus at the Teachers’ College or the Pedagogical Academy, including service in a primary, secondary or higher education school outside Cyprus~

(b) the service of a professor or teacher in public schools in Greece, which precedes a permanent appointment in public secondary or primary schools in Cyprus:

It is understood that the amounts that the professor or teacher is entitled to receive from the Auxiliary Funds of Greece, as well as the other pension benefits to which he is entitled for his service in Greece in accordance with the Convention between the Government of the Republic of Cyprus and the Government of the Hellenic Republic on the Retirement of Public Servants of 1994, will be paid directly to the Republic of Cyprus.

(c) in the case of a professor or teacher who serves in schools in the Turkish-occupied areas of Cyprus or served in these schools before his retirement or death and does not complete the maximum service limit required by Law for full pension, his time of service in these schools after the Turkish invasion shall be considered double for the purposes of calculating his retirement benefits~

(d) full-time service under the Greek Community Assembly of Cyprus which preceded service under the Government of the Republic~

(e) service as a teacher or professor before 1 September 1961, in a community secondary school or in a primary or secondary school outside Cyprus or in a private secondary school,

(i) preceded without interruption, either immediately or subsequently, by service in the Government of the Colony of Cyprus, service under the Greek Community Assembly as specified in (2) above or under the Government of the Colony of Cyprus~

(ii) the service was continuous:

It is understood that-

(a) interruption due to temporary suspension of employment not resulting from fault; the resignation of the professor is not considered to interrupt the continuity of service~

The Minister of Finance may decide that any interruption which does not fall within the above shall not be deemed to interrupt the continuity of the service if he is satisfied that the circumstances of the interruption justify such a decision.

(b) any period of interruption of service between 1 April 1955 and 31 August 1959, both dates inclusive, during which a professor who had previous service which is pensionable under another provision of this article did not work as a professor as a result of-

(i) dismissal from his position or termination of his services~ or

(ii) cancellation of the license to practice his profession under the Secondary Education Law, in force at that time, or

(iii) imprisonment of ~ or

(iv) confinement in a police station or detention center~ or

(v) his expulsion from Cyprus~ or

(vi) temporary suspension of the operation of the secondary school where he worked,

if the Minister of Finance is satisfied that this interruption was due exclusively to political reasons.

For the purposes of this section, the term “political speech” means any speech relating to actual or alleged participation in or association with a group or organization which was considered by the then Government of the Colony of Cyprus to be promoting political aims or actual or alleged participation, directly or indirectly, in actions which were considered by that Government to be motivated by political motives~

(iii) the service was on a full-time basis:

It is understood that if the service was not full-time, it will be considered as set out in Part A of the Annex.

Service after 31 August 1961, if not on a full-time basis, is calculated as set out in Part B of the Annex~

(f) any period of service as a teacher in the Armenian Primary Schools of Cyprus, which was offered before 1.11.1996 but does not include service as a teacher who was not serving on that date~

(g) service as a Superintendent before 1 September 1961, in a community secondary or higher education school in Cyprus or in a private school in Cyprus registered in the Register of Secondary Education Schools under the Secondary Education Law, which immediately preceded service under the Greek Community Assembly, shall be considered pensionable service, if such service was continuous and on a full-time basis:

It is understood that an interruption due to temporary suspension of employment that is not due to the fault or resignation of the supervisor is not considered to interrupt the continuity of the service:

It is understood that if this service was not on a full-time basis, it will be considered as specified in Part C of the Annex~

(h) service as a Visiting Sister in a School Board which preceded either immediately or after a break in service under the Law.

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Provident Fund, pension and gratuity refund

16. Any period of service for which any sum of money was received-

(i) From employer contributions to a Provident Fund and interest on contributions~ or

(ii) in the form of a pension or gratuity or compensation under any law or regulation or General Provision,

is not considered a service unless the interested party elects, by a document addressed to the Accountant General, to return the amount received with interest at such rate as the Minister of Finance may determine.

The election shall be exercised within three months from the date of entry into force of the Law or from the date of appointment to a permanent position by letter addressed to the Accountant General. The time and manner of return shall be determined by the Accountant General:

It is understood that the Minister of Finance may in any special case allow the election to be exercised until such later date as he may determine.

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Written by a professor or editor from another source

17. Any pension paid to a professor or curator from another source for service considered pensionable under this Law shall be deducted from the pension payable under the Law.

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Recognition of prior service
18.-(1) Subject to the provisions of subsections (2), (3) and (7), if an employee who has served for any period has left or leaves the service for any reason without receiving any benefit under this Law and has later been reappointed or is reappointed to a government service and has served for five years or more and finally retires in any case in which he is entitled to a pension under section 9, his previous service shall be taken into account for the calculation of his pension upon his final retirement:

It is understood that, if, by virtue of any law or regulation, a gratuity was granted to the employee for his previous service, the provisions of this subsection shall apply only if the employee immediately after his reappointment or at any later date as the Minister of Finance may permit in a special case, elects to return the gratuity paid to him.

(2) If an employee who retired under paragraph (c), (d) or (e) of article 9 (Cases of granting retirement benefits) – abolition of the position, compulsory retirement for the development of the Department or due to physical or mental incapacity – was reappointed or is reappointed to a government service and serves for a period of not less than five years and finally retires in any case in which he is entitled to a pension under article 9, his previous service shall be taken into account for the calculation of his pension upon his final retirement, if he immediately after his re-appointment notifies the Accountant General in writing that-

(a) He undertakes to immediately return any lump sum gratuity granted to him upon his retirement before completing five years of service under article 10 (Retirement before completing five years of service)~ or

(b) consents to the suspension of payment, from the date of his reappointment, of any pension granted to him and to the immediate refund of any sum paid to him as a lump sum gratuity. In such case, in calculating the pension and gratuity on his final retirement, no account shall be taken of any period of service which may have been added to his previous retirement:

It is understood that, if the employee does not give notice of his consent as provided in subparagraph (b) above, any additional pension granted to him under paragraph (b) of article 19 (Pension in case of abolition of position or reorganization), or under article 20 (Pension increase in case of retirement due to illness), shall be deducted from his pension from the date of his reappointment. The additional pension deducted shall be that which is paid to him on the date of his reappointment.

(3) If a female employee who retired under section 11 (Gift to female employees in certain cases) – due to impending marriage or marriage or childbearing or adoption of a child – is reappointed to the state service and serves for a period of not less than five years and finally retires in any case in which she is entitled to a pension under section 9 (Cases of granting of pension benefits) of the Law, her previous service shall be taken into account for the calculation of her pension upon final retirement, provided that immediately after her re-appointment or at any later date, as in a special case permitted by the Minister of Finance, she notifies the Accountant General in writing that she undertakes to return any gratuity granted to her.

(4) If an employee who retired under paragraph (i) of section 9 (Cases of granting retirement benefits) – in order to be appointed to an organization – is reappointed to the state service, serves for a period of not less than five years and finally retires in any case in which he is entitled to a pension under section 9 of the Law, his previous service shall be taken into account provided that the organization returns to the Government of the Republic the amount paid under section 25.

(5) The repayment of any amount under this section shall be made with simple interest, at such rate as the Minister of Finance may determine, calculated from the date on which the amount was paid until the date of repayment of the entire amount. The time and manner of repayment shall be determined by the Minister of Finance.

(6) In the event that an employee referred to in subsections (1), (2), (3), or (4) of this article, except as provided in subsection (2), dies at any time after his reappointment, his previous service shall be taken into account for the calculation of the family pension and the lump sum gratuity paid to his legal personal representative, without taking into account the condition of these subsections for at least five years of service after his reappointment.

(7) Subject to the provisions of the preceding paragraphs, a professor or teacher to whom a gratuity was granted for any previous service under the Teachers’ Pensions Laws or the Elementary Education Law or this Law, may exercise any election to return the gratuity to the Government of the Republic, without the imposition of interest, if the return is required for the purposes of granting a pension for such service by the Government of the Hellenic Republic.

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PART IV RETIREMENT BENEFITS FOR REASONS OTHER THAN RETIREMENT DUE TO AGE LIMIT
Pension in case of position abolition or reorganization

19. An employee holding a pensionable position who is compulsorily retired due to the abolition of his position or in order to facilitate the improvement of the organization of the department of the state service to which he belongs, with which more efficient operation or economy can be achieved, may be granted-

(a) Pension without taking into account the condition of completing five years of service~

(b) an additional pension equal to one sixtieth of his pensionable earnings for each period of three years of pensionable service:

It is understood that-

(i) the additional pension shall not exceed ten sixtieths of a year and

(ii) the total of the additional pension and the pension shall not exceed the pension to which he would have been entitled, if he had continued to serve in the position he held on the date of his retirement, and had retired upon reaching the mandatory retirement age, receiving all the increments to which he would have been entitled up to that date.

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Pension increase in case of retirement due to illness
20.-(1) Subject to the provisions of paragraph (2), in the event that an employee who retires under section 9(e) (Cases of granting retirement benefits) due to physical or mental incapacity has, on the date of his retirement, completed pensionable service-

(a) Five or more years but less than ten years is considered to have completed twice the pensionable service~

(b) ten or more years but less than fifteen years shall be deemed to have completed twenty years of pensionable service~

(c) fifteen or more years but less than twenty-three years, his pensionable service shall be increased by five years, with a maximum pensionable service limit of twenty-five years~

(d) twenty-three or more years but under thirty years, his pensionable service is increased by two years, with a maximum pensionable service limit of thirty years.

The above added service is considered a service with contributions:

It is understood that in no case will the pension be calculated based on service longer than that which the employee would have had if he had remained in service until his mandatory retirement age.

(2) The provisions of subsection (1) shall not apply in the case of an employee who is entitled to an additional pension due to disability resulting from an injury sustained in the performance of his duties under section 28 (Pension in the event of retirement due to disability), if such additional pension is greater than the benefit provided under subsection (1).

97(I)/1997
Termination of service for reasons of public interest

21. In the event of termination by the Council of Ministers of the service of an employee for specific reasons of public interest in accordance with the provisions of the relevant law, any new service of such employee following reappointment to any state service after his retirement pursuant to paragraph (f) of article 9 (Cases of granting retirement benefits) shall not be considered a continuation of his previous service, unless the Minister of Finance decides otherwise based on the circumstances of each case, in which case the employee shall return the benefits granted to him so that his previous service may be recognized.

97(I)/1997
Pension benefits in the event of a disciplinary penalty of forced retirement

22. In the event of forced retirement from a pensionable position, the issue of pension benefits is submitted by the Minister of Finance to the Council of Ministers, which decides on the pension benefits to be granted as well as the time of commencement of their payment, taking into account the circumstances of the case:

It is understood that the retirement benefits granted will not be less than those that would be granted to the employee if the penalty of dismissal were imposed on him.

97(I)/1997
Retirement due to unjustified incompetence or unsuitability

23. In the event of retirement of an employee for reasons of incompetence or unsuitability, in accordance with the provisions of the relevant law, retirement benefits are paid to him based on his actual service.

97(I)/1997
Retirement to take up public office
24.-(1) When an employee retires from service to undertake a public function that is incompatible with the office or position he holds in the state service, he shall in any case receive for his service-

(a) Pension under Article 8 (Pension Factor and Lump Sum) without taking into account the condition for completion of five years of service~ and

(b) such additional pension as the Council of Ministers deems fair and appropriate.

For the purposes of this article, an employee also includes a person serving on a temporary or other temporary basis in the public service.

(2) The additional pension referred to in paragraph (b) of subsection (1)-

(a) Together with the pension granted to him under paragraph (a) of subsection (1) or any other provision of this Part, it shall not exceed-

(i) in a case where the employee has not completed ten years of service, the pension to which he would be entitled, if he served in the government service for an additional period equal to that served before assuming public office, or if he retired due to age limit, whichever is the lesser~

(ii) in a case where the employee has completed ten years of service, the pension to which he would be entitled, if he served in the government service for a further period of ten years or if he retired from it due to age limit, whichever is the lesser~

(b) increases by any percentage by which pensions will increase between the date of his retirement and the date of payment of the additional pension.

(3) Any new service undertaken by any person in the state service or the judicial service, after his retirement, shall not be considered as a continuation of his previous service.

(4) In the case of a civil servant who retired under section 9 (Cases of granting retirement benefits) of this Law due to appointment to a public law organization in which a Pension Scheme does not operate and who subsequently retired from the organization to take up a public function which is incompatible with the office or position which he held in the civil service and in the organization, the Council of Ministers may approve the granting by the Government of such additional pension for as many years as he served in the organization. Such additional pension shall in no case exceed the pension for ten years of service and, together with the pension earned from his service in the civil service, shall not exceed the pension to which he would have been entitled if he had retired from the civil service due to age.

97(I)/19973(I)/199877(I)/1999
Retirement due to imminent appointment to an organization
25.-(1) If an employee holding a pensionable position is permitted to retire due to an imminent appointment to an organization, the Government of the Republic shall pay to the organization, upon his retirement from the state service, a lump sum equal to one-twelfth of his monthly pensionable remuneration on the day of his retirement for each completed month of pensionable service and an amount equal to twice the amount of the contributions paid by the employee for the transfer of the pension to his widow and children, together with interest at such rate as the Minister of Finance may from time to time determine. In such a case, his service in the government service is taken into account by the organization for determining the length of service that entitles him to benefits and for calculating the retirement benefits that he will be entitled to receive from the organization based on the retirement benefits plan that operates in the organization and is similar to the government pension plan.

(2) If the employee to whom subsection (1) applies is entitled upon his retirement from the organization to an annual pension, this may not exceed one-half of his annual pensionable earnings on the day of his retirement from the organization.

97(I)/1997
Benefits for employees with service in an organization
26.-(1) If an employee, who was appointed or was to be appointed to the service, had or has previous service in an organization, such previous service shall be considered as pensionable service for the purpose of determining the length of service which entitles him to benefits and for the purpose of calculating the retirement benefits to which he will be entitled from the Government of the Republic based on the provisions of this Law, whether his appointment to the state service was or was to be made immediately or after an interruption.

(2) The organization shall pay to the Government of the Republic, upon the employee’s retirement from the organization, a lump sum equal to one-twelfth of the employee’s monthly pensionable earnings for each completed month of pensionable service in the organization, as well as double any contributions paid by the employee for the transfer of the pension to his widow and children, with interest on all amounts from the date of retirement until the date of payment at such rate as the Minister of Finance may determine from time to time.

(3) If the employee was paid by the organization any benefit in the form of a gratuity or employer contributions to a Provident Fund, the provisions of this article shall apply only if the employee elects to pay to the Government such benefit with interest as referred to in subsection (2) above, in which case the organization shall not be obliged to pay the lump sum referred to in the previous subsection.

97(I)/1997
Right to transfer pension benefits from the civil service pension scheme to the European Union pension scheme
26A – (1) An employee who holds a pensionable position in the public service and who retires to take up duties in a permanent position in the European Union, is entitled, from the date of his permanent appointment and until the date on which he becomes entitled to a seniority pension within the meaning of Regulation 77 of Regulation (EC and Euratom) No. 11 and 31/1962, to act so that the Government of the Republic pays to the European Union the amount reflecting the capital value of the benefits he has secured under the civil service pension scheme, by reducing this amount to the time of his actual transfer:

It is understood that the transfer of retirement benefits may be carried out provided that the employee has not reached the age of sixty-three (63) years on the date of transfer.

(2) The amount referred to in subsection (1) shall be calculated as 1/12 of the monthly pensionable earnings of the employee on the day of his retirement for each completed month of pensionable service. To this amount shall be added an amount equal to twice the contributions paid by the employee for the transfer of the pension to the widow and children, together with interest at such rate as the Minister of Finance may from time to time determine:

It is understood that the months of service may not exceed four hundred (400).

(3) Upon receipt of a letter from the European Union for the transfer of pension benefits from the civil servants’ pension scheme to the European Union pension scheme, the General Accounting Office of the Republic of Cyprus shall, within three months from the date of receipt of the above letter, notify the European Union and the interested party of the necessary information in relation to the said transfer as well as the relevant application form for processing the transfer, as defined in article 2.

(4) The interested party, within three months from the date of the said notification document, must declare in writing to the General Accounting Office, through the European Union, whether he accepts the transfer of the relevant amount from the civil service pension scheme to the European Union pension scheme and this declaration is final and irrevocable. The actual transfer of the capital by the General Accounting Office shall be made within six months from the date of acceptance of the transfer, through the European Union. If the actual transfer is made after the end of the six-month period, the General Accounting Office shall pay relevant interest at such rate as may be determined by the Minister of Finance from time to time.

31(I)/2012
Right to transfer pension benefits from the European Union pension scheme to the civil service pension scheme
26B – (1) Where an official of the European Union, who, on the basis of Regulation (EC and EURATOM) No. 11 and 31/1962, has established a right to a pension, is appointed to a pensionable position in the civil service, he shall be entitled, from the date of ratification of his appointment, to transfer, to the civil service pension scheme, the actuarial equivalent amount of the seniority pension rights he has acquired for his service in the European Union, as calculated on the basis of Regulation (EC and EURATOM) No. 11 and 31/1962, and in such a case his service in the European Union shall be considered as pensionable service under the civil service pension scheme.

(2) Upon receipt of a letter for the transfer of pension benefits from the European Union pension scheme to the civil service pension scheme, an application form for the transfer of said benefits, as defined in article 2, shall be sent to the person concerned.

(3) Upon receipt of the completed and signed application form for the transfer of pension rights to the civil service pension system, the General Accounting Office of the Republic sends to the European Union and to the interested party all the information necessary for the processing of the transfer.

31(I)/2012
Voluntary early retirement
27.-(1)(a) When a government servant, holding a pensionable position and having completed five or more years of service and not less than forty-five years of age or forty-eight years of age in the case of a medical officer appointed on or after the date of commencement of the Pensions (Amendment) Law of 2001 or forty-eight years of age in the case of another public servant including the Auditor General and the Accountant General and their Assistants, appointed on or after the date of commencement of the Pensions (Amendment) Law of 2005 or forty-eight years of age in the case of a Professor appointed on or after the date of commencement of the Pensions (Amendment) (No. 2) Law of 2010, submits an application for early retirement from service, which is approved by the competent body, the lump sum to which he is entitled shall be paid to him forthwith. for his service, while the pension is frozen and paid immediately upon his reaching the age of fifty-five years or fifty-eight years in the case of a medical officer appointed on or after the date of entry into force of the Pensions (Amendment) Law of 2001 or fifty-eight years in the case of another public servant including the Auditor General and the Accountant General and their Assistants, appointed on or after the date of entry into force of the Pensions (Amendment) Law of 2005 or fifty-eight years in the case of a Professor appointed on or after the date of entry into force of the Pensions (Amendment) (No. 2) Law of 2010. The pension and the lump sum are calculated under article 8 (Pension coefficient and lump sum) based on his pensionable earnings on the day of early retirement. retirement. The pension, which will commence to be paid after reaching the age of fifty-five years or fifty-eight years in the case of a medical officer appointed on or after the date of commencement of the Pensions (Amendment) Law of 2001 or fifty-eight years in the case of another public servant including the Auditor General and the Accountant General and their Assistants, appointed on or after the date of commencement of the Pensions (Amendment) Law of 2005, will be increased by any percentage by which the pensions may have been increased between the date of his retirement and the date of payment of the pension:

It is understood that the competent body shall mandatorily approve the application for early retirement submitted by a member of the Police who is serving on 10 March 2010 and who submits the application upon reaching the age of sixty, in the case of a member of the Police who holds the rank of lieutenant or higher, or, in the case of a member of the Police who holds the rank of sergeant or higher, upon reaching the age of fifty-five or at any later time.

(b) When an employee who holds a pensionable position and does not satisfy the other conditions of paragraph (a) of this subsection, but has pensionable service of not less than three years, resigns from his position with the permission of the competent body, he shall receive immediately after his resignation a lump sum equal to one-twelfth of his monthly pensionable earnings on the date of his resignation for each completed month of service.

(2) If the employee to whom paragraph (a) of subsection (1) applies falls ill at any time before attaining the age of fifty-five years or fifty-eight years in the case of a medical officer appointed on or after the date of commencement of the Pensions (Amendment) Law of 2001 or fifty-eight years in the case of another public servant including the Auditor General and the Accountant General and their Assistants, appointed on or after the date of commencement of the Pensions (Amendment) Law of 2005 or fifty-eight years in the case of a Professor appointed on or after the date of commencement of the Pensions (Amendment) (No. 2) Law of 2010, the Minister of Finance, if satisfied by a medical report of a Government Medical Council that he is suffering from a physical or mental disability which is in all probability permanent and of such a nature that he cannot exercise any profession, may allow the pension to be paid immediately. In such a case the provisions of article 20 (Increase of pension in case of retirement due to illness) for increase of pension in cases of retirement due to illness shall not apply. The pension shall be calculated and increased as provided in subsection (1)(a) above.

(3) If the employee to whom paragraph (a) of subsection (1) applies dies at any time before attaining the age of fifty-five years or fifty-eight years in the case of a medical officer appointed on or after the date of commencement of the Pensions (Amendment) Law of 2001 or fifty-eight years in the case of another public servant including the Auditor General and the Accountant General and their Assistants, appointed on or after the date of commencement of the Pensions (Amendment) Law of 2005 or fifty-eight years in the case of a Professor appointed on or after the date of commencement of the Pensions (Amendment) (No. 2) Law of 2010, a widow and children’s pension shall be paid to his widow and children who are entitled to a pension, if any, in accordance with the provisions of Part V of the of this Law, without applying the first proviso to paragraph (1) of section 38 (Calculation of widow’s pension) regarding additional service in the calculation of the percentage of widow’s pension. The pension shall be calculated and increased as provided in subsection (1)(a) above.

(4)(a) If the employee to whom subsection (1) applies is reappointed to the government service before the payment of any pension and ultimately retires in any case in which he is entitled to a pension under section 9 (Cases of granting pension benefits), his previous service shall be taken into account for the calculation of his pension upon his final retirement, provided that his period of service immediately before his final retirement is not less than five years and he immediately after his re-appointment elects to return any lump sum or gratuity granted to him under paragraph (a) or (b) of subsection (1):

It is understood that, if the employee, who chose to return the lump sum or the gratuity, dies at any time after his reappointment, his previous service shall be taken into account for the calculation of the widow’s and children’s pension and the lump sum gratuity granted to his legal personal representative, without taking into account the condition of this subsection for completion of five years of service.

(b) The refund of the lump sum or gratuity under this subsection shall be made with simple interest at such rate as the Minister of Finance may from time to time determine. The interest shall be calculated from the date of payment of the lump sum or gratuity to the employee until the date of refund of the entire amount. The time and manner of refund shall be determined by the Accountant General.

(5) If the employee to whom paragraph (a) of subsection (1) applies is reappointed or re-employed in any service of the Republic after attaining the age of fifty-five years or fifty-eight years in the case of a medical officer appointed on or after the date of commencement of the Pensions (Amendment) Law of 2001 or fifty-eight years in the case of another public employee including the Auditor General and the Accountant General and their Assistants, appointed on or after the date of commencement of the Pensions (Amendment) Law of 2005 or fifty-eight years in the case of a Professor appointed on or after the date of commencement of the Pensions (Amendment) (No. 2) Law of 2010, the payment of the pension shall be suspended during his re-appointment. The payment of the pension resumes after his final retirement at the level at which it would have been if it had not been interrupted.

97(I)/1997141(I)/200169(I)/200537(I)/201094(I)/2010
Pension in case of retirement due to disability
28.-(1) In the event that any employee becomes permanently disabled as a result of an injury sustained-

(a) In the active performance of his duty~

(b) without his own negligence~ and

(c) due to circumstances which can be specifically attributed to the nature of his duty,

the Council of Ministers may-

(i) if his retirement becomes necessary or is substantially accelerated and if his total service is less than five years, to grant him, in lieu of a gratuity under section 10 (Retirement before completing five years of service), a pension and a lump sum under section 8 (Pension coefficient and lump sum), based on his length of service, without taking into account the condition for completing five years of service~

(ii) to grant him upon his retirement an additional pension, calculated as follows based on his pensionable earnings on the date of his retirement:

When the disability is-

light – five sixtieths (5/60) of pensionable earnings~

serious – ten sixty (10/60)~

very serious – fifteen sixty (15/60)~

full – twenty-sixty (20/60).

For the purposes of this paragraph:

“mild disability” means a degree of disability between 10% and 30%, both percentages inclusive~

“severe disability” means a degree of disability of over 30% up to and including 50%~

“very severe disability” means a degree of disability of over 50% up to and including 70%~

“complete disability” means a degree of disability of more than 70%,

as disability and its degrees are defined in the Social Insurance Laws or in any law amending or replacing them:

It is understood that the additional pension may be reduced by such amount as the Council of Ministers may deem reasonable, if disability is not the reason or the only reason for retirement.

(2) If the employee who became disabled as mentioned above at the date of the injury did not hold a pensionable position or held a pensionable position on probation, the Council of Ministers may, upon his retirement, grant him a pension of an amount equal to the additional pension that could have been granted to him under subsection (1) if the position he held was pensionable and his appointment had been confirmed.

(3) Any additional pension payable under subparagraph (ii) of subsection (1), together with any pension payable under this Law and together with the annual amount of the benefit paid due to disability as a pension under the Social Insurance Laws, may not exceed the annual pensionable earnings of the employee on the date of his retirement.

97(I)/1997
Pension increase in cases of retirement due to total disability
29.-(1) Notwithstanding the provisions of section 20 (Increase in pension in case of retirement due to illness) and subject to the provisions of section 8 (Pension coefficient and lump sum) in the event of retirement of an employee who has completed five or more years of service under paragraph (e) of section 9 (Cases for granting pension benefits) because the employee is unable to perform his duties due to mental or physical disability and such disability is likely to be permanent and he has become totally disabled, the pension granted to him is that which would have been paid to him if the retiree had continued in service and retired on the date on which he would have reached the age limit for compulsory retirement. This pension is calculated based on the highest step of the salary scale of the position immediately above the position held on the date of retirement. The period of pensionable service added is considered as service with contributions:

It is understood that, if the total pension resulting under article 28 (Pension in the event of retirement due to disability) is greater than the pension based on this article, the greater pension shall be paid.

(2) For the purposes of this section-

“totally disabled” means an employee who has become permanently incapacitated to a degree of one hundred percent and this incapacity makes it impossible to perform the duties of his position, provided that the said incapacity and its degree are due exclusively to injuries caused under circumstances judged by the Minister of Finance to result from his participation in the Liberation Struggle of 1955-1959 or from the conditions created after 21 December 1963, or from the illegal action of EOKA B or during or after the coup of 15 July 1974, or from 20 July 1974, due to the Turkish invasion.

97(I)/1997
Gratuity when the employee dies in service or after retirement
30.-(1) When an employee holding a pensionable position or an employee serving in a non-pensionable position to which he was seconded from a pensionable position dies in service, his legal personal representative shall be granted a lump sum not exceeding his annual pensionable earnings on the date of his death or the expiry of any leave he may have had to his credit on that date or the lump sum to which he would have been entitled if he had retired due to physical or mental disability under paragraph (e) of article 9 (Cases for granting pension benefits) on the date of his death or the expiry of any leave he may have had to his credit on that date, whichever of these amounts is the greater:

It is understood that, in the case of a professor or teacher, for the purposes of this subsection, if death occurs between 31 January and 31 August, his pensionable service is deemed to be increased by two months or by the period of time between the date of his death and 31 August, if this is shorter than two months.

(2) Where an employee to whom a pension or gratuity was granted under this Part of the Law dies after his retirement and the total amount paid or payable to him up to his death by way of pension or gratuity or other retirement benefit for any government service is less than the annual pensionable emoluments he was receiving at the time of his retirement, his legal personal representative shall be granted a gratuity equal to the difference.

97(I)/1997
Pensions to dependents of an employee who died in the performance of his duty
31.-(1) Subject to the provisions of this section and the following section, where an employee dies while in service as a result of an injury sustained-

(a) In the active performance of his duty~

(b) without his own negligence~ and

(c) due to circumstances which can be specifically attributed to the nature of his duty,

the Council of Ministers may grant, in addition to the gratuity that may have been granted to his legal personal representative under article 30 (Gratuity when the employee dies in service or after retirement) –

(i) if the deceased employee leaves a widow, a pension to her, provided she remains unmarried, the amount of which shall not exceed twenty-five percent (25%) of his annual pensionable earnings at the date of his death~

(ii) if the deceased employee leaves a widow to whom a pension is granted under the preceding paragraph and a child or children, a pension for each child, not exceeding one-sixth of the amount of the pension determined by the preceding paragraph~

(iii) if the deceased employee leaves a child or children but no widow, or if no pension is granted to the widow, a pension for each child, the amount of which is double the amount specified in the preceding paragraph~

(iv) if the deceased employee leaves a child or children and a widow to whom a pension is granted under paragraph (1) and the widow subsequently dies, a pension for each child from the date of the widow’s death equal to twice the amount specified in paragraph (ii)~

(v) if the deceased employee does not leave a widow or if no pension is granted to the widow and if his parents or either of them were wholly or mainly dependent on him for his maintenance, a pension to the father or mother or to both, provided that they or either of them lack sufficient means of maintenance. The amount of the parents’ pension shall not exceed the amount of the pension which could be granted to his widow:

It is understood that:-

(a) A pension shall not be paid under this subsection at any time for more than three children~

(b) in the case of a pension granted under paragraph (v) of this subsection, if either parent was widowed at the time of the grant of the pension and subsequently remarries, such pension shall terminate from the date of the remarriage. If, in the opinion of the Minister of Finance, at any time any of the parents to whom a pension was granted under paragraph (v) has other sufficient means of maintenance, such pension shall terminate from the date to be determined by the Minister of Finance~

(c) the Minister of Finance may order the termination of the payment of a pension granted under this subsection to a female child, when the child marries~

(d) the Minister of Finance may order-

(i) the continuation of payment of a pension for a child who, although he has ceased to be entitled to it under this article, suffered, during the time when he was entitled to a pension, a mental or physical disability certified by a Government Medical Council and rendering him incapable of earning the necessary means of subsistence~

(ii) subject to the provisions of paragraphs (a) and (c) of this proviso, the payment of a pension for a child who, regardless of age at the time of the death of his father, suffers from a mental or physical disability, certified by a Government Medical Board and rendering him incapable of earning a living:

It is understood that the Minister of Finance may order the termination of the pension at any time, if he is satisfied by an opinion of the Government Medical Council that the disability has ceased to exist or does not prevent the child from earning a living.

(2) The Minister of Finance shall determine the minimum pension granted under this article. This amount shall also include pensions granted to children under this article. This minimum pension shall not be subject to the indexation increase provided for in article 44 (Indexation of pensions) of the Law.

(3) Any pensions payable under this section shall be reduced by an amount equal to one third of the annual benefit amount paid as a death pension under the Social Insurance Laws.

(4) Any pensions payable under this section together with the annual amount of any benefit paid as a pension under the Social Insurance Laws shall in no case exceed the pensionable earnings of the deceased employee on the day of his death.

(5) For the purposes of this Law, “children” are the legitimate or legitimized or out of wedlock or recognized or adopted or are natural children of the spouse provided that they do not exceed the eighteenth (18th) year of age or the twenty-fifth (25th) year if they are attending a school, college, university or other educational institution or are being practiced by any person in any profession, profession or art under conditions that require them to devote their entire time to their studies or practice or are on active service in the National Guard by virtue of the National Guard Laws. The term “children” also includes stepchildren.

(6) The provisions of this article shall not apply in the event of the death of an official if his widow or children or his dependent parents are entitled to pensions under Part V:

It is understood that, if the pensions granted under Part V are in total smaller than the pensions granted under this article, the pensions that are in total larger shall be paid.

97(I)/1997
Pensions to dependents of a police officer who died in the line of duty
32.-(1) Notwithstanding the provisions of section 31 for pensions to dependants, where a police officer who has completed five or more years of service dies while on duty-

(a) In the active performance of his duty~

(b) without his own negligence~ and

(c) due to circumstances which can be specifically attributed to the nature of his duty,

The pension granted to the widow and child is that which would have been paid to them if the deceased had been in service and had died on the date on which he would have reached the age of compulsory retirement. This pension is calculated on the basis of the highest step of the salary scale of the grade immediately above the grade held by the deceased on the date of his death. The period of service added shall be considered as service with contributions:

It is understood that if the pensions granted under article 31 are in total greater than the pensions that would be granted under this article, the greater pensions shall be paid.

(2) The provisions of this article shall also apply in the case of a police officer who, regardless of the length of his service, died under circumstances arising from the conditions created after 21 December 1963, or from the illegal action of EOKA B or from the coup of 15 July 1974, or the Turkish invasion, provided that in his case the conditions of paragraphs (b) and (c) of subsection (1) of this article are met.

(3) The term “police officer” in this article has the meaning assigned to it by the Police Law.

97(I)/1997
Re-employment. Suspension of pension payment

33. If a retired employee is reappointed to a pensionable position in the state service, the payment of his pension shall be suspended during his new service. The payment of the pension shall resume after the termination of his new re-appointment, at the level it would have been if it had not been suspended:

It is understood that if the monthly salary is lower than his monthly pensionable earnings on the day of his retirement, he shall be paid such part of the pension which, added to the salary, equals it to the amount of his said pensionable earnings.

97(I)/1997
PART V FAMILY PENSION
Implementation of Part V

34. Part V of the Act and any other articles providing for family pension shall apply from 1st January 1990 to both female government employees holding a pensionable position and female pensioners. Any reference to the words “employee”, “pensioner”, “deceased”, “widow”, “the wife”, “contributor” shall be construed as including “female employee”, “female pensioner”, “deceased”, “widower”, “the husband”, “female contributor” and any reference to children shall be construed as including the children of a female employee or a female pensioner.

97(I)/1997
Appointed day

35. “Designated day” means April 1, 1967, for male employees, September 1, 1967, for teachers, July 1, 1973, for members of the Army and January 1, 1990, for female employees.

97(I)/1997
Family pensions

36. Subject to the provisions of this Part, in the event of the death of a person if the deceased-

(a) He was retired~ or

(b) was entitled to a pension under this Law, whether such pension was granted or not, or

(c) was still serving as an employee and at the time of his death would have been entitled to a pension if he had then retired under paragraph (e) of article 9 (Cases of granting retirement benefits),

granted for the service of-

(i) “widow’s pension” when a spouse is left behind~ and

(ii) children’s pension, as provided below.

97(I)/1997
Widow’s pension
37.-(1) A widow’s pension is paid to the surviving wife from the death of her husband until her death.

(2) A widow’s pension shall not be granted if the widow remarries after the death of her husband. If, after the grant of a pension, the widow remarries, the pension shall terminate from the date of the new marriage:

It is understood that in the event of dissolution of the new marriage or death of the new spouse, the Minister may, after taking into account the circumstances of the case, authorize the payment to the widow of a pension up to the amount that would have been paid if it had not been interrupted.

(3) For the purposes of this Part, no account shall be taken of a marriage which took place when the deceased ceased to be an employee:

It is understood that, if the deceased had a spouse at the time of his retirement, who died after his retirement and he subsequently remarried, his last spouse is considered a widow for the purposes of this Part.

97(I)/1997
Widow’s pension calculation
38.-(1) Subject to the provisions of subsections (2) and (3), the amount of the widow’s pension shall be calculated on the amount of the pension to which the deceased pensioner was receiving or to which the deceased pensionable employee would have been entitled, based on his pensionable service, on the day of his death and shall be determined as a percentage thereof-

(i) for service with contributions, 75% of the pension~

(ii) for service without contributions, a percentage of 37.5% of the pension:

It is understood that if a pensionable employee had, on the day of his death in service, completed pensionable service-

(a) Five or more but less than ten years, is considered to have completed twice the pensionable service~

(b) ten or more but less than fifteen years, he shall be deemed to have completed twenty years of pensionable service~

(c) fifteen or more but less than twenty-three years, his pensionable service is increased by five years, with a maximum pensionable service limit of twenty-five years~

(d) twenty-three or more but under thirty years, his pensionable service is increased by two years, with a maximum pensionable service limit of thirty years.

The service added in this way is considered a service with contributions:

It is understood that the pensionable service may in no case exceed that which the employee would have had if he had remained in service until his mandatory retirement age.

(2)(a) The widow’s pension of a pensioner who retired before the specified date is 37.5% of the pension paid to him on the day of his death:

It is understood that in the case of a pensioner who was a contributor to the Widows’ and Orphans’ Pension Fund, established under the Widows’ and Orphans’ Pensions Law, his widow’s pension for the completed months of service for which he was a contributor to this Fund is 75% of the pension paid to him on the day of his death and which was earned during the above months.

(b) The provisions of paragraph (a) of this subsection shall also apply in the case of a pensioner who was a pensionable employee within the meaning of article 2 of the Compensation of Beneficiary Employees Law, and retired under the provisions thereof or is an employee whose services were terminated for public interest purposes under paragraph (f) of article 6 of the Pensions Law, Cap. 311, which is repealed by the Law and who served under the Community Assembly.

(3) The minimum pension payable under this section shall be fixed, with effect from 1 July 1985, at fifty-five pounds and 24 cents per month. This minimum pension shall not be subject to the indexation provided for in section 44 (Indexation of pensions):

It is understood that the Minister of Finance may review the amount of the minimum widow’s pension based on the percentage by which the basic benefits increase from time to time under the Social Insurance Laws.

97(I)/1997
Children’s pension
39.-(1) A children’s pension is granted if there are children who are entitled to it and is paid as long as they are entitled to it.

(2) Subject to the provisions of this article, the children of the deceased and the children of his spouse are entitled to a pension.

(3) For the purposes of this article, children are children born in or out of wedlock, or legitimized or recognized, or adopted or are natural children of the spouse provided that they do not exceed the eighteenth (18th) year of age or the twenty-fifth (25th) year if they are attending a school, college, university or other educational institution or are being practiced by any person in any profession, profession or art under conditions that require them to devote their entire time to their studies or practice or are on active service in the National Guard under the National Guard Laws. The term “children” includes stepchildren.

(4) They are not entitled to a children’s pension under this article-

(a) Children of the deceased who were born after the lapse of ten months after he ceased to be an employee or were adopted by him after he ceased to be an employee~

(b) children of the deceased’s spouse who were born or adopted after the dissolution of the marriage or after the deceased ceased to be an employee.

(5) Subject to the provisions of subsection (4), no pension shall be granted for a natural, step, adopted or illegitimate child of the spouse of the deceased, unless at the time of his death he was wholly or mainly dependent on the deceased.

(6) Notwithstanding the preceding provisions of this section, the Minister of Finance may order-

(a) The payment of a child’s pension for a child who, regardless of age, at the time of his father’s death suffers from a mental or physical disability, certified by a Medical Board as rendering him incapable of earning the necessities of life~

(b) the continuation of the payment of a child’s pension to a child who, although he/she has ceased to be entitled to it under this article, suffered during the period in which he/she was entitled to a pension, a mental or physical disability certified by a Medical Board as rendering him/her incapable of earning the necessities of life:

It is understood that the Minister of Finance may, in any case, at any time, order the termination of the pension, if he is satisfied that the disability has ceased to exist or does not prevent the child from earning the necessities of life.

97(I)/1997
Calculation and method of payment of child pension
40.-(1) Only one child’s pension shall be granted for the service of any employee, but-

(a) Its percentage varies, depending on the number of children who are entitled to it~

(b) is paid to the person or persons and in such installments as the Minister may determine~ and

(c) the person to whom the whole or any part thereof is paid uses the amount paid to him without discrimination for the benefit of all the children entitled to it or for the benefit of such of them as the Minister may determine.

(2) When the deceased leaves a widow, the percentage of the children’s pension during her lifetime is 16.67% of the widow’s pension in respect of each eligible child, with a maximum limit of the pension for two children.

(3) When the deceased does not leave a widow or, if a widow is left, after her death, the percentage of the children’s pension is 44.44% of the pension which would be paid to the widow in respect of each eligible child, with a maximum limit of the pension for three children.

(4) When the widow remarries, the percentage of the children’s pension is 22.22% of the pension that would be paid to the widow, with a maximum limit of the pension for three children.

(5) The provisions of subsection (3) of article 37 regarding the minimum widow’s pension shall apply to the widow’s pension and to the pension which would be paid to the widow referred to in subsections (2), (3) and (4) above.

97(I)/1997
PART VI CONTRIBUTIONS
Periodic contributions
41.-(1) The following persons (“contributors”) shall be required to pay contributions under this section referred to as “periodic contributions”-

(a) Any person (contributor) who is a pensionable employee, except an employee who has exercised in writing and irrevocably the right to elect, shall not be subject to the provisions of Part I of this Law~

(b) Anyone who becomes a pensionable employee at any time after the appointed day.

(2) Periodic contributions shall be paid-

(a) In the case of a contributor who was a pensionable employee on the appointed day, from that day until he ceases to be an employee~

(b) in all other cases, from the day the contributor becomes a pensionable employee until he ceases to be an employee.

(3) Periodic contributions are calculated on the contributor’s monthly pensionable earnings.

(4) The periodic contributions payable are an amount equal to 0.75% of the contributor’s annual pensionable earnings up to an amount equal to his insurable earnings, which are determined from time to time based on the Social Insurance Laws and at a rate of 1.75% of the pensionable earnings in excess of his insurable earnings:

It is understood that in the event that an employee elects to pay contributions for a period prior to 5.10.1980, the contribution rate for the period up to 5.10.1980 will be 1.75%.

(5) If a contributor is on leave with reduced pay or on standby or on leave without pay, which is considered pensionable service under section 14 (Calculation of pensionable service), he shall contribute at the rate specified in subsection (4) above. No contribution shall be paid for a period during which the contributor is on leave without pay which is not considered pensionable service under the Law.

(6) The obligation to pay periodic contributions shall be created daily and the amount of the contribution shall be deducted monthly from the contributor’s earnings. If during the period of leave without pay which is considered pensionable service, the contributor fails to pay his contributions, the amount of the arrears of contributions shall be deducted from his earnings after such leave in such instalments as the Accountant General may determine in each case.

(7) Notwithstanding the provisions of subsection (2), no contributor shall be required to pay an amount representing more than four hundred monthly contributions, taking into account the contributions paid or deemed to have been paid under this section.

97(I)/1997
Contributions for previous service
42.-(1) Every employee who has previous service which may be considered as pensionable service and who has not paid contributions may, within such period as the Minister of Finance may allow, exercise an irrevocable right of election to pay the prescribed contributions for his previous service. The pension for such previous service shall be calculated on the basis of the percentage specified in paragraph (a) of subsection (1) of section 38 (Calculation of widow’s pension).

(2) The right to elect shall be exercised by a document addressed to the Accountant General specifying the period for which the employee wishes to pay the contributions payable and the manner of their payment. Such contributions may be paid at the time of exercising the election (“initial contribution”) or in instalments.

(3) For the purposes of this section, an employee who was a contributor to the Widows and Orphans Pension Fund, established by the Widows and Orphans Pensions Law, for the period during which he was a contributor to the Fund and a contribution was paid by the Government to the Fund, shall be deemed to have paid the contribution specified in this Law.

97(I)/1997
Refund of contributions
43.-(1) If a contributor, who has paid periodic contributions, dies or ceases to be an employee and-

(a) He was not married during the period of his service for which contributions were paid~ or

(b) is not entitled to a pension under Part II,

all periodic contributions and any initial contribution paid are returned to him or his legal personal representative, as the case may be.

(2) If the spouse of a contributor who paid periodic contributions dies before him (her) or their marriage is dissolved by divorce and the contributor dies in service or retires, without remarrying, the periodic contributions paid and any initial contribution paid shall be returned to him or, as the case may be, to his legal personal representative:

It is understood that, in the event that upon the retirement or death of a contributor there are eligible children, as the term is interpreted in this Law, the contributions referred to in this subsection are not refunded.

(3) In the event that, based on this article, contributions must be refunded, they shall be refunded with simple interest at such rate as the Minister may from time to time determine.

97(I)/1997
PART VII MISCELLANEOUS PROVISIONS
Indexation of pensions
44.-(1) Notwithstanding the provisions of Parts II, III, IV, V and VI of the Law, the Minister shall have the power, by decree published in the Official Gazette of the Republic, to determine from time to time the amount of the increase, due to the fluctuation of the indexation index, to be given to the pensions of retired employees who retired before 1 January or 1 July of the year in which the decision is published or to the pensions of dependents of employees or pensioners who died before 1 January or 1 July of the year in question.

(2) The amount of this increase will be determined based on the percentage increase in the average of the index of the past six months compared to the average of the index of the immediately preceding six months and will begin to be paid from the first day of the six months in which the decision is published:

It is understood that in cases of retirement or death during the past six months, the indexation allowance that was taken into account when calculating the pension of the retired employee or the pension of dependents will be taken into account for the purposes of determining the amount of this increase.

(3) For the purposes of this section – “six months that have passed” means the six months that ended on the day preceding the first day of the six months within which the Minister’s decision is published~

“Dependents’ pension” means a pension paid under this Law to the widow and/or children of a deceased pensioner or deceased employee.

97(I)/1997
Reduction of benefits under Social Security Laws
45.-(1) Subject to the provisions of subsection (2), the pensions provided under this Law shall be reduced by the amount of the corresponding supplementary benefit paid to the pensioner or in respect of him under the Social Insurance Laws in respect of the insurable earnings on which contributions were paid from 6 October 1980.

(2) For the purposes of articles 5(1) and 88(1) of the Social Insurance Laws, the employee is deemed, in respect of any service other than the service taken into account for the calculation of the maximum pension rate provided for in this Law and the lump sum, not to be covered by an occupational pension scheme.

(3) From the gratuity provided under this Law to an employee to whom a pension is not paid under this Law, the contribution paid by the Government of the Republic on his insurable earnings for the proportional part of his pension under the Social Insurance Laws shall be deducted, at the time of granting the gratuity, together with interest, the rate of which shall be determined by the Minister of Finance.

(4) In the event of death in service of an employee who does not leave a beneficiary under the Social Insurance Laws, the contribution referred to in the previous paragraph shall not be deducted.

97(I)/1997
Special provisions in relation to the implementation of articles 5 and 88 of the Social Insurance Laws
46.-(1) An employee who, before his retirement, completes pensionable service of not less than 400 months shall, from the date on which he completes such service, cease to be considered to be subject to an occupational pension scheme and the provisions of the proviso to subsection (1) of section 5 and subsection (1) of section 88 of the Social Insurance Laws shall cease to apply in his case from the first of the month following that date.

(2) An employee who was in service on 1 January 1988, and completed by 25 May 1990, pensionable service of at least 400 months, shall be deemed not to have been subject to an occupational pension scheme from the date of completion of the said pensionable service and the provisions of the proviso to subsection (1) of section 5 and the provisions of subsection (3) of section 88 of the Social Insurance Laws shall be deemed to have ceased to apply in his case from the first of the month following that date:

It is understood that an employee who had completed the said pensionable service before 1 January 1988, is entitled to elect, within six months from the date of publication of this Law, that the provisions of this subsection shall be applied in his case retroactively from the first of the month following the date on which he completed 400 months of pensionable service, or on 6 October 1980, whichever of these dates is later.

(3) Any social security contribution which would be payable retroactively by an employee or pensioner to whom the provisions of subsection (2) apply shall be paid into the Consolidated Fund of the Republic in the manner and at the time determined by the Minister.

(4) In the cases of employees and pensioners to whom the provisions of subsections (1) and (2) of this article apply, the provisions of subsection (1) of article 88 of the Social Insurance Laws shall not apply with regard to any pensionable service during which they are considered not to be covered by an occupational pension scheme.

97(I)/1997
Life certificate and evidence..

47. Every pensioner, widow/widower, child or parent after acquiring the right to an annual pension shall produce proof of life and any other supporting documents specified by the Accountant General. In case of failure to comply, the Minister may suspend the payment of the pension.

97(I)/1997
Certificate of service

48. Details concerning the service of an employee which cannot be verified on the basis of existing records shall be confirmed by the production of such evidence as the Minister may determine.

97(I)/1997
Power to extend time

49. Where any period or date is specified in the Law, within or on which any right of election must be exercised, the Minister may, upon written application to him, regardless of whether such period has expired or the date has passed, extend such period or specify a later date for the submission of an application or the exercise of the right of election.

97(I)/1997
Abolitions and reservations

50. The laws and regulations referred to in the Schedule to the Law are repealed from the date of entry into force of the Law:

It is understood that the repeal of laws and regulations shall be without any effect on-

(a) The rights acquired by any person under the repealed laws and regulations~

(b) the rights which were preserved or acquired by any person by virtue of any election in accordance with the provisions of the repealed laws or regulations.

97(I)/1997
ANNEXES
ANNEX

(article 15)

A teaching position that was not on a full-time basis is calculated as follows:

A. Service before 1.9.1961

If teaching employment –

does not exceed 26 hours per month Unknown

exceeds 26 hours but does not count as one third of the month

exceeds 56 hours per month

exceeds 56 but does not exceed It is counted as two-thirds of the month

90 hours per month

exceeds 90 hours per month A whole month is counted

B. Service after 31.8.1961

If teaching employment –

does not exceed 21 hours per month Unknown

exceeds 21 hours but does not exceed one third of the month

it goes up to 47 hours per month

exceeds 47 but does not exceed It is counted as two-thirds of the month

77 hours per month

exceeds 77 hours per month Counts as a full month

For the calculation of teaching employment –

(a) The ten-month period of school work each year, which includes school holidays and the Christmas and Easter holidays, is taken into account.

(b) the teacher is considered to have had the same teaching workload on each school holiday, except Saturday and Sunday, as on the corresponding day of the immediately preceding week.

(c) if the teacher’s employment began before the Christmas or Easter holidays and continued after the holidays, the teacher is considered to have had the same teaching employment on each day of the holidays, except Saturday and Sunday, as on the corresponding day of the week immediately preceding the holidays.

(d) if the part-time employment of a teacher in a school year, calculated as defined above, was of at least five months duration, one fifth is added to the total number of months considered for the two-month period of summer vacation during which school work is interrupted.

C. Service as a curator before 1.9.1961 is calculated as follows:

If employment –

does not exceed 43 hours per month Unknown

exceeds 43 hours but does not exceed one third of the month

it goes up to 86 hours per month

exceeds 86 hours but does not exceed two-thirds of the month

it goes up to 129 hours per month

exceeds 129 hours per month A whole month is counted

For the purpose of calculating this employment, the supervisor is assumed to have had the same employment on each school holiday and during the Christmas and Easter holidays as on the corresponding day of the immediately preceding week.

PANEL

(article 50)

(Laws and Regulations that are repealed)

I. The Pensions Law,

Chapter 311.

17 of 1960

9 of 1967

18 of 1967

51 of 1968

119 of 1968

9 of 1971

65 of 1973

42 of 1976

38 of 1979

2 of 1981

39 of 1981

25 of 1984

2 of 1986

47 of 1987

61 of 1990

107 of 1990

137 of 1991

33(I) of 1992

112(I) of 1992

43(I) of 1993

17(I) of 1994

5(I) of 1995

71(I) of 1996

II. The Pension Regulations

Chapter 311, Table.

Government Gazette,

Annex Three: 14.5.1959

Official Gazette,

Annex Three: 8.12.1961

Law 9 of 1967, Table

Law 18 of 1967, Table

Official Gazette,

Annex Three: 8.9.1967, 4.10.1968

Law 9 of 1971, Table

Law 42 of 1976, Table

Law 38 of 1979, Table

Law 39 of 1981, Table

Law 25 of 1984, Table

Official Gazette,

Annex Three: 31.3.1988

Law 61 of 1990, Table

Law 33(I) of 1992, Table

Law 43(I) of 1993, Table.

III. Parts V, VA and VB of the Elementary Education Law,

Chapter 166.

21 of 1959

19 of 1967

62 of 1968

69 of 1970

20 of 1971

67 of 1973

70 of 1975

41 of 1976

36 of 1979

38 of 1981

26 of 1984

4 of 1986

33 of 1988

63 of 1990

35(I) of 1992

114(I) of 1992

45(I) of 1993

95(I) of 1994

28(I) of 1996

73(I) of 1996

88(I) of 1996

IV. The Laws on Teachers’ Pensions.

56 of 1967

1 of 1970

19 of 1971

66 of 1973

43 of 1976

37 of 1979

40 of 1981

24 of 1984

3 of 1986

34 of 1988

62 of 1990

34(I) of 1992

111(I) of 1992

44(I) of 1993

16(I) of 1994

99(I) of 1994

26(I) of 1996

72(I) of 1996.

Note
3 of L77(I)/99 Entry into force of this Law
The force of this Law is deemed to have begun on June 1, 1989.

Note
6 of Law 141(I)/2001Entry into force of Law 141(I)/2001
(1) Subject to the provisions of subsection (2), this Law [S.S.: namely L.141(I)/2001] shall come into force on the first day of January 2002.

(2) Article 4 of this Law [S.S.: namely L.141(I)/2001] shall enter into force on 31 October 2001.

Note
6 of Law 69(I)/2005Entry into force of Law 69(I)/2005
This Law [S.S.: namely L.69(I)/2005] shall enter into force on the first day of July 2005.

Note
6 of Law 94(I)/2010Entry into force of Law 94(I)/2010
This Law [S.S.: namely L.94(I)/2010] shall enter into force on 1 September 2011.

Note
3 of Law 31(I)/2012Entry into force of Law 31(I)/2012
The force of this Law [S.S.: namely L.31(I)/2012] is deemed to have commenced on 1 May 2004.

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