The government’s pension reform must deliver sustainable and adequate pensions without increasing contributions or the retirement age, Disy president Annita Demetriou said on Thursday after meeting Labour Minister Marinos Mousiouttas.

The meeting was part of the government’s consultations with parliamentary parties ahead of the submission of the pension reform bill to the House, with Mousiouttas saying the dialogue would continue before the legislation is brought forward.

Demetriou affirmed that Disy would “contribute constructively once again” after being briefed on the main principles of the proposed reform.

Mousiouttas said the government had “carried out all aspects of the project, resolved questions, listened to suggestions and decided that this dialogue will continue”.

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He said the government was open to concerns and proposals from political parties and social partners.

“The result is to help our current retirees and current workers and future retirees live a better and more dignified life,” he said.

The minister said the reform aimed to correct distortions in the pension system while taking account of demographic and financial conditions over the next 40 years.

He said the government hoped to begin parliamentary debate as soon as possible, with implementation targeted for January of next year.

The reform includes a proposal to reduce the early retirement penalty from 12 per cent to 4.5 per cent, while limiting the reduction on the basic pension to 7.5 per cent.

Mousiouttas said the measures would increase pensions for affected retirees by an average of around 6 per cent.

The government estimates the reform will cost €24 million for current pensioners and a further €12 million cumulatively over five years.

Mousiouttas said its sustainability would be reviewed after five years.

Demetriou said pensions were “a critical issue” affecting the whole of society and said Disy would establish its own working group to study the proposals.

“We want to have a comprehensive and sustainable reform that will provide adequate pensions without increasing contributions and the retirement age,” she said.