Employers and Members

The Members contribute to the Account A which is kept in the Fund 10% of their monthly income (basic salary + COLA), while the employer contributes an amount equal to 10% of each member’s monthly income (basic salary + COLA) to the Account B. The incomes arising from the Hotel units are excluded from the contributions.

The total of the annual contributions made to the Fund within 2005 came up to CYP £11,689,046. The contributions per member present an aggregate increase of 13.3% during the last 6 years, while the average annual pace of increase during the same period (1998-2004) is 2.2%. During the said period, the average pace of increase of the index of consumer prices (inflation) was only slightly higher, that is 2.74% annually. We believe that the difference between the increase of the average contribution per member and the inflation is due to a considerable number of non-active members (4000), a fact that alternates our observations. The complete updating of the new software program of the Fund with the members' personal information will demonstrate the real increase in contributions and will lead to more precise conclusions. For the purposes of this report, we consider that the Members’ Contributions will continue to increase with a pace which will be slightly higher than the inflation.