The government’s pension reform bill will be sent to trade unions and employers’ organisations in the coming days after President Nikos Christodoulides met Labour Minister Marinos Mousiouttas and Finance Minister Makis Keravnos on Friday to finalise the next stage of the process.

The meeting examined the various aspects of the proposed reforms before it was decided that the draft legislation would be forwarded to the social partners for discussion through the labour advisory body.

Two meetings of the labour advisory body have already been scheduled for August 19 and August 28, where employers and trade unions are expected to examine the government’s proposals before the bill is submitted to parliament.

The legislation is intended to reform the first pillar of Cyprus’ pension system, which covers the social insurance fund, with the government aiming for the first measures to come into force on January 1 next year.

Mousiouttas has previously said pensioners should begin receiving higher payments from February, while insisting the reforms will not include an increase in either the statutory retirement age or social insurance contributions.

He has said the proposals represent “the maximum possible utilisation of the fund’s resources”, adding that any additional expenditure would have to be balanced by savings elsewhere within the system.

Employers and trade unions have welcomed the consultation process but have said key issues remain unresolved until they examine the final text.

Keve has questioned the long-term sustainability of increasing benefits without changing contribution rates or the retirement age, while trade unions have argued reforms to the first pillar should be considered alongside changes to the second, including outstanding issues such as early retirement reductions, widowers’ pensions and eligibility for support.