Cabinet decision 'close'

The Cabinet is set to meet in a marathon session today to draw up what could be the final document on pension reform.

Sources said submissions were still being sent to the government even at this stage and nothing was being ruled out, but Prime Minister Lawrence Gonzi has often said that decision time has come.

It is expected that the details on the reform will be made public by the end of the month.

The Cabinet will be deciding on several issues, but the reforms centre around three main ones: the establishment of a minimum pension that is higher than the existing one; the introduction of private pensions and the gradual introduction of a retirement age of 65.

The sources explained that there will essentially be three categories according to different age groups. Current pensioners will not be affected.

A gradual phasing-in system will be introduced for those over 46. Private pensions will be introduced for those under 46. A decision has still to be made about whether there will be a guaranteed minimum pension for those in this age bracket, for which a contribution will have to be paid. But a private pension will also have to be taken out.

The sources said the announcement of the pensions reform package will continue to show the government's commitment in making the necessary decisions at the opportune time.