PM hints at revision of pension reform

An internal exercise to take stock of the pensions reform five years from its launch has been embarked upon, Prime Minister Lawrence Gonzi said.

He indicated there could be some fine- tuning, particularly on the need to introduce the second pillar of the reform, which envisages the option for future pensioners to have a private pension.

Speaking during a press conference at the end of an EU Summit in Brussels, Dr Gonzi admitted there was still a lot to do for Malta’s public finances to become sustainable over the long-term but emphasised that the government was on the right track to tackle the deficit and debt issues.

“It is true that the Commission has said that Malta needs to do more changes so that its public finances are sustainable but it also said that, in the short term, Malta is on the right track. We have already reduced the deficit this year while the economy is registering good progress.”

He said the government had started an exercise, piloted by the Finance Ministry, aimed at taking stock of the situation with regards to the pension reform and propose a way forward.

“I still want to discuss this in more detail but it may be the case were the second pillar of the reform (private pensions) will have to be fine-tuned.”

In a report issued yesterday the Commission placed Malta with a group of 15 member states which have problems with regards to the long-term sustainability of their public finances.

The Commission said that urgent reforms should be introduced by Malta in the pensions and healthcare sectors.