Alternattiva Demokratika – The Green Party submitted its proposals to Government’s pensions group on the pension reform. AD said that it believes in a socially just and economically sustainable pensions system.

Michael Briguglio, AD Chairperson, said, “Having a universal pension for all – which is as equal as possible – is essential. This does not hinder the people’s right to invest in private pension schemes on a voluntary basis.”

“As a responsible party, AD agrees with the addition of a second pillar to the first pillar. Thus, the financial sustainability of the pensions system will not be jeopardised as people will be saving an extra amount of money that will be used solely for pension purposes and will not be used by the government for other reasons. The second pillar should, however, be introduced in a responsible manner, thus avoiding shocks in people’s quality of life. In all cases, the state should have the ultimate say in the financing of the pensions system. This should be coupled with civil society and professional involvement in the policy aspect and management of the system.”

“On the other hand, the requirement that one would have to have worked 40 years to be entitled to contributory pensions is definitely not agreeable.This is especially so in this day and age of precarious employment, individualisation of lifestyles and employment as well as other realities such as having people moving in and out of the labour force due to factors such as unemployment, care work and parenthood.”

Nighat Urpani, AD spokesperson for Social Protection, added, “Irrespective of the number of years worked, one should be guaranteed the right to a decent pension. The state pension should also retain its non-contributory pensions to cover groups such as those who do not form part of the labour force and those who for some reason or another cannot pay second pillar contributions for justified reasons. Such pensions, together with those for low and middle income earners should guarantee a decent quality of life. More emphasis should be made on having the lowest-paid pensions based on realistic cost-of-living calculations. Social justice should be prioritised.”

“With regard to retirement age, all citizens should be eligible for a state pension at the age of 65, subject to the transition period already defined, without losing their right to remain part of the workforce and without losing pensions should they opt to keep working.”

“It is clear that Malta’s pension system cannot remain as it is. Otherwise, given the demographic reality of an ageing population, there will simply not be enough funds to sustain Malta’s pensions in the future as the ratio between workers and pensions shall keep narrowing. Besides, due to cost-of-living increases, the value of pensions will keep declining, thus probably resulting in more poverty among pensioners. In short, keeping the present pensions system is not an option because this will ultimately lead to financial collapse and to poorer pensioners.”

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