The government has postponed the presentation of its pension reform bill, with Labour Minister Marinos Mousiouttas conceding that additional time will be given for consultations in an effort to secure broader consensus before the legislation is finalised.

Speaking to newspaper Politis on Monday, Mousiouttas said the bill would not be presented to cabinet this week as originally planned, following requests from trade unions and employers’ organisations for discussions to continue without strict deadlines.

“Since there is a call for the dialogue to continue without restrictive timetables, in order to have more convergences and therefore fewer disagreements after its presentation, we decided not to present the bill today,” he said.

He said the delay would be brief and insisted the government remains committed to advancing the reform package as soon as possible.

“This will be done in a very short period of time so that the social partners can have all the data before them and take a position on the whole,” he said.

He added that discussions concerning the second pillar of the pension system would continue in the coming weeks, while the timing of the bill’s submission to cabinet would depend on the progress of consultations.

The postponement comes as the government seeks to build support for one of the most significant overhauls of the pension system since 1980.

The reform package is expected to address a range of issues including support for low-income pensioners, the management and investment of social insurance fund reserves, and the reduction of “penalties” applied to people who retire before the age of 65, who at present receive 12 per cent less than they would if they retired at 65.

He has repeatedly stressed that any reform must balance improved pension outcomes with the sustainability of the social insurance fund and the preservation of fiscal stability.

Earlier this month, he ruled out proposals to raise minimum pensions from €450 to more than €1,000 per month, as had been suggested by House President Annita Demetriou and Direct Democracy Cyprus leader Fidias Panayiotou, arguing that such increases would place excessive strain on public finances.

“It is not possible for a pension of €450 to increase by 125 per cent to €1,088,” he said, while assuring pensioners that increases would be granted to the greatest extent possible within the limits of the system.

The government’s approach has also included rejecting proposals to reduce pensions for higher earners.

A report examining the future cost of pensions had explored cuts of between two and five per cent for the highest earning pensioners, but Mousiouttas said the government did not support that option.

“Our own view is that this scenario should be set aside and we should remain within the bounds of scenarios in which no reduction of the acquired rights of any pensioner is envisaged,” he said earlier this year.

Trade unions have welcomed continued dialogue while expressing concerns over the pace and structure of the reform process.

Both trade unions Peo and Sek have argued that the content of the reforms should take precedence over any timetable and have called for a comprehensive approach to ensure future pensions remain above the poverty threshold.

The government has previously indicated that it wants pension reform legislation approved in time to come into force by January of next year.