UHM sees need for pensions system reform

The Union Haddiema Maghqudin's general secretary, Gejtu Vella, said yesterday that pensioners retiring as soon as five or 10 years from now could find it hard to make ends meet with two thirds of Lm6,750, the maximum pension capping legislated 17 years ago.

Speaking at the UHM pensioners' annual general meeting, Mr Vella said pensioners were carrying additional burdens while the purchasing power of money continued to weaken.

Mr Vella said the reform of the pensions system had been on the agenda for years. "Today, 37,438 people receive a retirement pension, 8,763 receive an invalidity pension and the average retirement age in Malta is 57 years eight months," he said.

Mr Vella explained that the country spent Lm90 million on retirement pensions and Lm36 million on widows' pensions together with an additional Lm13 million for invalidity pensions.

The UHM agreed that reform was necessary to ensure an adequate livelihood for future pensioners but such reform could not take place unless the government and the social partners had concrete proposals in hand.

"The government is still drafting a white paper on pensions reform. While the UHM is in favour of such a reform, the union thinks change should come about after discussions and well-thought out plans where solidarity is of utmost importance," Mr Vella said.

He said the union would be carefully weighing proposals in the white paper, making sure pensioners were not affected negatively by the reform.

The UHM would make sure reforms were introduced over a number of years and that new measures were implemented after discussions between the government and the social partners.