Public consultation on pension reform launched

Everyone is being invited to take part in the public consultation on the pensions reform, which started yesterday and runs until May 31.

The consultation will revolve around the report drafted by the Pensions Working Group, which among its 45 recommendations said that a mandatory private pension scheme targeted at people under 45 years old should be introduced immediately, and that the pensionable age should be tied to an index of life expectancy.

The report had stressed that the country could not keep postponing the introduction of the second pillar pension because the present system was becoming increasingly insufficient for pensioners to enjoy the quality of life they were used to.

Despite this emphasis, however, Minister Tonio Fenech in January had ruled out the possibility of second-pillar pensions being introduced this year.

The consultation process, led by the working group, will take the form of public discussions and activities, accompanied by a widespread media campaign.

Making the announcement at a meeting of the Malta Council for Economic and Social Development, Employment Minister Dolores Cristina said the government had a “strong interest” in listening to the opinion of all citizens, including young people, as well as social partners before it took a position and decided on the 45 recommendations.

Under a law enacted in 2006, the government is obliged to carry out a strategic revision of pensions every five years to adjust to the changing scenario, as the research period to establish trends in pensions – 50 years – is considered too long.

The European Commission has been stressing the need for Malta to accelerate its pension reform programme to guarantee the long-term stability of public finances.

All documentation pertaining to the revision can be accessed on www.pensionsreform.gov.mt. Formal submissions and questions on the documentation can be made to the Pensions Working Group at pensionsreform@gov.mt.