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Retirement in BOCY at 65th year

04/07/2013 13:18
Bank of Cyprus Management and ETYK agreed to extend the retirement age of the employees in the bank until the 65th year.

The agreement, which extends the maximum retirement age by three years, is expected to be applicable to other banks with the renewal of the union contract.

The bank employees, based on the last union contract, retire on December 31 of the year in which they reach the age of 60, if they complete a total of 36 years of actual service in the bank.

If an employee has not completed the 36 years of actual service, then the retirement age is extended until December 31 of the year in which he/she complements the 36 years or December 31 of the year in which he/she complements the 62nd year of his age, whichever comes first.

Under the new agreement, which seems to have emerged a few days ago in the context of the ongoing negotiations between the two sides for the staff salary cuts, the relevant provision is amended as follows:

The extension of the retirement age of the employees in BOCY will be of tiered character. From 1/1/2014 the retirement age will be extended to 63rd year, from 01.01.2015 will be extended to 64th and from 1/1/2016 to the 65th.

The achievement of the agreement was confirmed to StockWatch by the Chairman of the Bank of Cyprus Board, Sophocles Michaelides, without entering in details.

He merely said that the extension of the retirement age to the 65th year is an obligation that derives the memorandum agreement between Cyprus and the troika.

The agreement was confirmed by the Chairman of ETYK Loizos Hadjiicostis, while the details will be announced to the members shortly.

The agreement is estimated to be a harbinger for the extension of the retirement age to other bank employees, since without the new arrangement and with the provisions of the memorandum they would have seven-year gap between the retirement and receiving the pension from the Social Insurance Fund.