Pensioners call for effective revision of pensions cap

The Alliance of Pensioners' Organisations, which includes the Pensioners' Association, the GWU and the UHM, has called on the authorities to revision the maximum pension cap.

In a statement it noted that at the opening of the Forensic Year, the Chief Justice raised the question of the honoraria and occupational pension arrangements of judges and magistrates.

The alliance said it agreed that members of both benches of the judiciary meritted a level of remuneration consonant with their important roles, and which excluded other part-time remunerative work. It acknowledged that the level of remuneration may affect the calibre of the people who chose to serve in the judiciary.

"The Social Security Pension entitlement of Judges, Magistrates and of those in the professions, business and senior management is in the current sorry state because when the wage and price freeze ended in 1987, successive administrations repeatedly failed to address the problem of the artificial cap of the pension that can be paid. This cap on the Maximum Pensionable Income remained unchanged between 1981 and 2004 in spite of the salary revolution the country underwent. It only started being increased in 2005 by an annual flat rate Cost of Living addition, which addition reflects inflation at the minimum wage level," the alliance said.

The problem, therefore, went beyond that of the judiciary.

"When it comes to pensions, the political class has highly advantageous arrangements without any cap. These are paid for by taxpayers. The creation of another privileged category in the area of pensions would demolish the dam holding back a truly substantial upward revision of the pension cap in the case of Social Security pensions," the alliance said.