Pension Scheme for Lawyers
Σχέδιο Συνταξιοδότησης Δικηγόρων
Coverage
Mandatory insurance
- All practicing lawyers in the private sector.
- Lawyers employed by the Law Office from 14/09/1966 until 18/03/2005.
Financing
General finances
- PAYG-financed through contributions to the ‘Advocates Pension Fund’ by practicing lawyers and certain lawyers employed at the Law Office.
Contribution payments
- Contributions are paid in the form of registration fees, licence renewal fees, and other special fees.
- One-time registration fee: EUR 50.
- For the purpose of renewing their licence to practice the profession, lawyers must pay EUR 480 for the previous year during which they held a licence to practice the profession.
- If a lawyer continues to practice law after the age of 70, he/she does not pay the fee for renewing his/her licence; years for which he/she does not pay the fee will not be counted towards the contribution period.
- Other fees are paid by lawyers to the ‘Advocates Pension Fund’ when filing petitions and appearing before courts.
Taxation of contribution payments
- Contributions are tax-deductible.
Administration
- The ‘Advocates Pension Fund’ provides pensions to retired lawyers.
- The ‘Advocates Pension Fund’ is under the control of the Board of Directors comprised of the Attorney-General (as its President), the President, Secretary and the Treasurer of the Cyprus Bar Association, the Presidents of the Local Bar Associations and a retired lawyer that receives pension in accordance with the relevant regulations.
Qualifying Conditions
Qualifying conditions
- Upon completing 40 years of practicing the legal profession, regardless of the person’s age.
- Upon completing 35 years of practicing the legal profession and attaining, at the same time, the age of 65.
- Upon completing 25 years of practicing the legal profession and attaining, at the same time, the age of 70.
Early retirement
- Available at age 60 to persons with 35 years of practicing the legal profession, with gradual negative (permanent) actuarial adjustments (6% per year).
- Available at age 65 to persons with 25 years of practicing the legal profession, with gradual negative (permanent) actuarial adjustments (6% per year).
Benefits
Pension payments
- Monthly pension and lump sum benefit based on the years of practicing the legal profession and/or age criteria.
- If the financial conditions of the Fund permit so, the pensioners may be granted a 13th and 14th pension payment.
Factors for benefit calculation
- The amount of the monthly pension is calculated via formulas decided by the Council of the Cyprus Bar Association.
- The current formula is as follows: basic monthly pension plus 30% of the basic monthly pension.
- The basic monthly pension is calculated as follows: the number of months of practiced law multiplied by 9350 and divided by 5760.
Taxation and social security contributions
- Benefits may be subject to taxation, in accordance with the Income Tax Law (Law 118(I)/2002) in the event that total pension amount exceeds EUR 19,500.
- Contributions to public health insurance are mandatory (2.65% of pension benefit for the Cypriot General Health System).
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Mandatory insurance
- All practicing lawyers in the private sector.
- Lawyers employed by the Law Office from 14/09/1966 until 18/03/2005.
General finances
- PAYG-financed through contributions to the ‘Advocates Pension Fund’ by practicing lawyers and certain lawyers employed at the Law Office.
Contribution payments
- Contributions are paid in the form of registration fees, licence renewal fees, and other special fees.
- One-time registration fee: EUR 50.
- For the purpose of renewing their licence to practice the profession, lawyers must pay EUR 480 for the previous year during which they held a licence to practice the profession.
- If a lawyer continues to practice law after the age of 70, he/she does not pay the fee for renewing his/her licence; years for which he/she does not pay the fee will not be counted towards the contribution period.
- Other fees are paid by lawyers to the ‘Advocates Pension Fund’ when filing petitions and appearing before courts.
Taxation of contribution payments
- Contributions are tax-deductible.
- The ‘Advocates Pension Fund’ provides pensions to retired lawyers.
- The ‘Advocates Pension Fund’ is under the control of the Board of Directors comprised of the Attorney-General (as its President), the President, Secretary and the Treasurer of the Cyprus Bar Association, the Presidents of the Local Bar Associations and a retired lawyer that receives pension in accordance with the relevant regulations.
Qualifying conditions
- Upon completing 40 years of practicing the legal profession, regardless of the person’s age.
- Upon completing 35 years of practicing the legal profession and attaining, at the same time, the age of 65.
- Upon completing 25 years of practicing the legal profession and attaining, at the same time, the age of 70.
Early retirement
- Available at age 60 to persons with 35 years of practicing the legal profession, with gradual negative (permanent) actuarial adjustments (6% per year).
- Available at age 65 to persons with 25 years of practicing the legal profession, with gradual negative (permanent) actuarial adjustments (6% per year).
Pension payments
- Monthly pension and lump sum benefit based on the years of practicing the legal profession and/or age criteria.
- If the financial conditions of the Fund permit so, the pensioners may be granted a 13th and 14th pension payment.
Factors for benefit calculation
- The amount of the monthly pension is calculated via formulas decided by the Council of the Cyprus Bar Association.
- The current formula is as follows: basic monthly pension plus 30% of the basic monthly pension.
- The basic monthly pension is calculated as follows: the number of months of practiced law multiplied by 9350 and divided by 5760.
Taxation and social security contributions
- Benefits may be subject to taxation, in accordance with the Income Tax Law (Law 118(I)/2002) in the event that total pension amount exceeds EUR 19,500.
- Contributions to public health insurance are mandatory (2.65% of pension benefit for the Cypriot General Health System).
Legal Basis: Advocates (Pensions and Allowances) Regulations of 1966-2018 (Οι περί Δικηγόρων (Συντάξεις και Χορηγήματα) Κανονισμοί του 1966-2018); Advocates Law (Cap. 2) (Ο περί Δικηγόρων Νόμος (Κεφ. 2)).