Pension Scheme for Physicians and Dentists

Mandatory insurance

• Every physician registered under the provisions of the relevant legislation and who is practicing medicine in the Republic of Cyprus as a freelancer or an employee (with the exception of physicians working for the public, wider public, or local authority).

Voluntary insurance

• Dentists who are registered under the provisions of the relevant law and who are practicing dentists in the Republic as freelancers or as employees (with the exception of dentists working for the public, or wider public or local authority).
• Potentially pharmacists who are registered under the provisions of the relevant law and who are practicing the profession in the Republic as freelancers or as employees (with the exception of those pharmacists working for the public, wider public, or local authority). (No pharmacists participate in the scheme thus far.)

General finances

• PAYG-financed through registration fees and contributions from its members.
• Donations.
• Investments of the fund’s assets.

Contribution rates

• One-time registration fee: EUR 51.26.
• Fixed monthly contribution payments independent of declared income (EUR 88); lower payments for first 24 months (EUR 44).
• Additional voluntary contribution payments are allowed (up to 5 times of the fixed monthly payment).

Taxation of contribution payments

• Contributions are tax-deductible.

• The Supervisory Committee of the ‘Doctors and Dentists Pension Fund’.

Qualifying conditions

• Retirement age is 65 with minimum contribution period of 60 months.

Early retirement

• Available at age 60, with minimum contribution period of 120 months without actuarial adjustments.

Pension benefits

• Amount based on contribution payments.
• The beneficiary may choose to receive monthly or yearly pension payments or a mix of the two.
• Lump sum amount for contributors who do not qualify for full pension benefits: contributors who have reached the age of 65 and who have paid contributions of at least 6 months, but who are not entitled to receive a pension, are entitled to a lump sum retirement payment.

Pension calculation

• The annual amount of the pension is equal to 1/360 of the ‘maximum amount of pension’ for each month of paid contributions.
• The ‘maximum amount of pension’ for persons that have paid the basic contribution fee of EUR 88 per month is EUR 1,408; the ‘maximum amount of pension’ for persons contributing a larger amount is accordingly 1/2, 3/4, 1½, 2 times higher than the above amount.
• Lump sum amount: it is calculated by the Board of Directors, following consultations with the actuary of the ‘Doctors and Dentists Fund’, and taking into consideration the amount of contributions made by that person, the administrative costs of the Fund and the interest on the investments of the Fund.

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).