New Pension and Provident Fund Law in Cyprus

The Cyprus Parliament has recently passed a new Pensions Law (click on the link to open this in pdf) which effectively unifies the previous legislation (L. 44/1981 and L. 146/2006 and their relevant amendments).

The Management Committees of Pension Funds and Provident Funds in Cyprus should ensure compliance with the new Law as some of its articles might require changes to their Rules. A notable addition in the new Law is the requirement to restrict the vesting period to a maximum of 4 years (i.e. all Provident Fund members with more than 4 years of service are entitled to 100% of the employer’s contributions).

In addition, a new set of guidance/rules will be issued imminently by the Regulatory Authority.

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