Unions against the proposed 12 per cent drop in pension payments for those who retire before the age of 65 said on Tuesday they were not satisfied with the labour ministry’s latest proposal.

The two sides met on Monday.

“The opinion that the labour ministry proposal regarding the 12 per cent drop in pension payments is not satisfactory is a common assessment of all the involved organisations,” a statement released on Tuesday said.

The data that was taken into consideration to come up with the proposal “are very problematic,” it added.

The statement was signed by 19 trade unions and social organisations as well as pensioners’, youth, women, and self-employed groups.

“Noting the ineffectiveness [of the labour ministry proposal], we will continue to closely monitor the matter,” the statement continued.

According to Labour Minister Yiannis Panayiotou, the proposal would positively impact a total of 10,000 pensioners who have taken early retirement since 2012, with all 10,000 set to receive an extra €800 per year.

In addition, the scrapping of the reduction would allow an extra 1,000 people per year to retire early while taking home a pension €800 higher than it otherwise would have been.

Under the current system, people can retire at 63 if they have completed 33 years of social insurance contribution. Retirement at this age is two years sooner than the official retirement age that qualifies retirees for a full state pension.

However, early retirees are penalised to the tune of 12 per cent even after full pension rights come into effect at 65. The reduction was deemed unfair on people who had put in 40 years of contributions as opposed to those who had put in 33.

Back in November, Panayiotou said that an actuarial study on social insurance fund reserves found that relief could be provided without any impact on the fund or without higher contributions from elsewhere for a certain segment of pensioners even if the 12 per cent was totally abolished for some.