Ministry welcomes European green paper on pensions

The Education Ministry welcomed the publication of the Green Paper “Towards adequate, sustainable and safe European pension systems” on the future of pensions.

This, it said, launched an important public debate on the future of pension systems to ensure their adequacy and sustainability.

"While we acknowledge the importance of the Green Paper and positively note that it recognises that there in no ‘one-size-fits-all’ solution in this regard, reforming the pension system has in fact been a priority for the Maltese government for the last decade.

"The rationale has always been to introduce a comprehensive pension reform program with the main objective of safeguarding the future sustainability and adequacy of Malta’s pension system.

"The Maltese government has in fact started to implement the process in a gradual manner, with the adoption of a set of parametric reforms to the Pay As You Go component of its pension system in 2007.

"In actual fact, amongst other, measures have already been introduced to increase the national retirement age which is being gradually raised to sixty-five years and also the extension from thirty to forty years of the social security contribution period on which pension entitlements are worked out. Discussions are also underway regarding the possible introduction of further mandatory or voluntary funded pension scheme," the ministry said.

It said the debate on reforming social security and pensions should be done in total respect of the principle of subsidiarity.

Member States should consequently determine the way to ensure the adequacy of their pension systems as well as to what adequate retirement income should entail in their Member States.

While it was not against strengthening the policy coordination framework at EU level in the area of pensions, the ministry believed this should not prejudice Member States’ competence in determining pension policies at national level.

The European Commission is inviting all interested parties to respond to the questions set out in this Green Paper, together with any additional comments, by means of an online questionnaire.

The deadline for submission of feedback is 15 November 2010.

The Maltese government will be providing feedback to the Commission during this consultation period and urges all stakeholders, social partners and non governmental organisations to also provide their views and valuable practical experiences.

http://ec.europa.eu/yourvoice/ipm/forms/dispatch?form=pensions