The Wolfson Cyprus Group Conference 2728 May 2005 Sustainable Economic Development in Cyprus: Toward

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The Wolfson Cyprus Group Conference27-28 May
2005 Sustainable Economic Development in Cyprus
Towards Economic Convergence and Reunification
The Case of the Northern Part of Cyprus

• Harmonisation of the
• Social Security Systems
• for United Cyprus
• Hasan SARICA
• MS Economics

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Current Systems

• In North Cyprus
• Social Insurance Scheme for workers,
  self-employeed and houseworks
• Pension Fund for civil servants
• Special pension funds of several public
  institutions
• Provident Fund
• Social services

• In South Cyprus
• Social Insurance Scheme for workers,
  self-employeed, houseworks and CIVIL SERVANTS
• Pension Fund for civil servants
• Special pension funds of several public
  institutions
• Provident Fund
• Social welfare

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Total contributions of parties

• South Cyprus
• Social Insurance Scheme
• - Employees 6.3
• - Employer 6.3
• - State 4
• TOTAL 16.6
• - For self-employees 11.6
• Of total earning based to payment

• North Cyprus
• Social Insurance Scheme
• - Employees 8
• - Employer 10
• - State 6.5
• TOTAL 24.5
• - For self-employees 15
• Of total earning based to payment

4
Total contributions of parties

• North Cyprus (Civil servants)
• Pension Fund
• - Civil Servant 9
• TOTAL 9
• Of total gross monthly salary

• South Cyprus (Civil servants)
• Pension Fund
• - Civil Servant 0.75-1.75
• - Employer 9.4
• - State 3.0
• TOTAL 15.5
• Of total gross monthly salary

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Retirment Age

• In North Cyprus
• Social Insurance Scheme 50
• Pension Fund 55

• In South Cyprus
• Social Insurance Scheme 63
• Pension Fund 60

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Main Divergencies

• Rate of contributions of the parties
• Retirment Age
• Different systems of either side
• Pension system that envisaged at Annan Plan for
  federal civil servants and respective sides
  social security systems

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Harmonisation Issues

• There are several system at each side
• There will be a federal social security system
  for federal civil servants

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Steps Towards Harmonisation

• Harmonisation of the systems in each side
• Harmonisation of systems of the two sides
• Harmonisation of the systems of two sides and
  possible federal system

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Recognition of Benefits

• Sickness
• Maternity
• Accidents at work
• Occupational diseases
• Invalidity
• Old age pension
• Survivors benefits
• Death grants
• Unemployment benefits
• Family benefits

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Agreement between two sides

• Equality of treatment for all individuals
• Aggregation of periods of service between systems
  to be possible
• An individual to be insured under the system
  where s/he works
• Benefits should be coordinated and mutual between
  systems
• Benefits should be pro-rated between systems
• One united body at relations with EU member
  states and others

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• THANK YOU
• FOR YOUR
• CONSIDERATION