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Judges set to receive uncapped pensions

Pension packages may mirror MPs’

Malta’s judiciary. Photo: Matthew Mirabelli

Malta’s judiciary. Photo: Matthew Mirabelli

Judges and magistrates are set to receive uncapped pensions similar to retirement arrangements for parliamentarians, The Times has learnt.

The reform is part of a shake-up that the government hopes will address complaints about the courts’ efficiency

This means retired judges and magistrates will receive two-thirds of their actual salary. Other pensioners receive two-thirds of an established threshold, set at a maximum of €21,000.

The details of its implementation are still being worked out but there is agreement in principle between the government and the judiciary, according to sources close to the judiciary.

This change, which would also apply to retired judges and magistrates, forms part of a package of reforms for the judiciary recently revealed by The Sunday Times.

The plan is to raise their retirement age from 65 to 68 and to implement more effective surveillance of their performance.

It would come alongside an agreed raise of €12,000 for all the members of the judiciary, staggered over three years, which means that, by 2015, a judge will be receiving a total package of about €62,500 while a magistrate will get just under €57,000.

However, it is not yet clear what this will translate to in terms of pension because a significant portion of this salary package is comprised of allowances, which are not taken into consideration for a pension.

A spokesman for Justice Minister Chris Said, who is leading the negotiations, would not confirm that an uncapped pension was on the cards but said the judiciary’s pension scheme was under discussion.

“The details will be announced once negotiations are over.

“You will appreciate that we cannot comment on matters that are still being discussed,” he said.

Currently, pensions are capped at a maximum income of €16,000 for those born before 1951 and about €21,000 for people born after 1962.

The capping is adjusted for the latter in line with cost of living and salary increases.

Irrespective of one’s income prior to retirement, the maximum pension people can expect to receive is two-thirds of the capped sum.

Parliamentarians, members of Cabinet and Speakers who would have served for five years, on the other hand, receive two-thirds of their average salary in these positions, without capping.

The reform comes as a long overdue shake-up that the government is hoping will address complaints about the efficiency of the judiciary.

From October 1, the courts will have a diary system through which all cases will be appointed and heard by a specific time and date.

Moreover, the judiciary’s watchdog, the Commission for the Administration of Justice, should be given new powers to censure judges and magistrates after facing consistent criticism for being toothless.

Some of the changes require the support of a two-thirds majority in the House of Rep­resentatives. This means the government would require the opposition’s support.

When contacted, the Labour Party spokesman for justice, José Herrera said he felt he could not take a public stand on the proposed reform before the matter was discussed by the Parliamentary Group.

“I can confirm that the government has informed us of the discussions but we’ll have to discuss the matter internally before taking a position,” he said.

News of the salary increase comes after the Prime Minister announced similar improvements to the conditions of the Police Force.

Both issues were raised by rebel backbencher Franco Debono in his criticism of former Justice Minister Carm Mifsud Bonnici.

Governments across Europe have had to face the challenge of making a judicial career attractive to lawyers who often have to abandon a more lucrative private practice.

But the changes also come amid growing concerns about the sustainability of the pension system.

Members of the judiciary in England and Wales only this year started contributing a small percentage of their £100,000-plus salaries into their retirement pots.

The change attracted criticism from the judiciary and the public, the former complaining that the contribution contravenes their contracts and the latter that the cost-cutting does not go far enough to reflect the sacrifice being made by the rest of the population in the recession.

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Eddy Privitera

Aug 20th 2012, 18:45

On this one I heartily agree !

Steve M. Engerer

Aug 20th 2012, 18:51



Well said Dr. Saliba..

R. Cilia

Aug 20th 2012, 21:35

When Jesus spoke those words he was not refering to money, however the sentence you chose from the bible depicts a good picture of how your GonziPN always discriminates in favour of the strong and mighty!

Tony Camilleri

Aug 20th 2012, 23:21

Well said Dr Saliba. I fully agree with you on this.

ANTHONY PAVIA

Aug 20th 2012, 16:22

As happened with the Public sector's reform (?). A lot of words/promises and a lot of money paid out. Result! Performance worse than before as they created more chiefs than indians; and promises were very soon forgotten. Not enough though! The incessant braying for more "justice" started immediately following the signing of the collective agreement.

John Vella

Aug 20th 2012, 15:00

damn right Mr Mizzi

Manuel Briffa

Aug 20th 2012, 15:46

Indeed Mr Mizzi, the discrimination already exists with parliamentarians. They all get their full 2/3rds pension, unlike us mere mortals, who have to make do with a 'capped' pension. What are we, children of a lesser God? Where's the logic behind this horribly unjust system?

Tony Camilleri

Aug 20th 2012, 23:25

I will support you and perhaps people can start a class action.
As Mr Briffa said this is already carried out by the politicians who get better terms for their pensions and revisions according to the current salaries while the rest of us will have our pensions capped and also they get their pension after being elected twice while we have to work, if we survive, according to an ever-increasing age.

Tony Camilleri

Aug 20th 2012, 23:26

That is also another form of discrimination. because why should a date make a difference to your pension if you have paid the required amount of contributions? Discrimination by the highest authorities of the State.

Charles Grixti

Aug 20th 2012, 14:17

That is what you get when you vote in Right-Wing governments - more money for them and less for the working classes - call it an insult if you will be that is the nature of the beast and it will only get worse - the lower and middle class has to be stripped of all its previous gains with the ultimate aim to creating a two-tier society, the rich on top and the poor at the bottom. The same model that was in force in South America by the fascist Juntas (backed by the US and CIA) has now been made to be the 'ideal' model for all of the world thanks to Globalism, the War on Terror, and the idea that if we make the rich richer, somehow the wealth will 'trickle down' to the rest of us, known as the "Trickle Down" theory of economics, of course all with the help of the IMF and other neo-con agencies.

M Farrugia

Aug 20th 2012, 11:28

nzqbel mieghek mija fil-mija habib

Alfred Cauchi

Aug 20th 2012, 11:38

Well said Mr. Mifsud, Just remember these last fees weeks what kind of judgments and penalties where given . WE ALL LOST OUR CONFIDENCE IN MALTESE JUDICARY . HEJ What about those two that where found guilty of bribery will they get uncapped pension too

Anthony Grech

Aug 20th 2012, 13:10

100% right Mr. Mifsud.

Mr ALBERT LEONE GANADO

Aug 20th 2012, 12:55

One trusts that a formula be found to give a fair and just pension to all those who have retired and not discriminate between retired employees who equally served the country. Because of capping I get a pension which is about 1/4 the salary of the current equivalent post. How different it was under Dom Mintoff when except for a handful of persons two thirds pension really meant two thirds and my father ended up getting a pension higher than the salary when he was working. Pensioners now face a double whammy because their life savings are hardly earning any interest income with interest rates at one percent and inflation at 3.5 per cent. Perhaps the country can no longer afford to give everyone a two-thirds pension but in fairness we pensioners should all be treated the same. Rather then let the judiciary enter the select pension club of the MPS I suggest that the pension should be 50 per cent of the current post for all with a minimum capping so that the lowly paid will also benefit.from a living wage.

Dominic Chircop

Aug 20th 2012, 14:14

Rell that to your PM, Joseph!!!

Charles Grixti

Aug 20th 2012, 14:26

Never mind a fair pension for all. The unstated aim for all governments is to remove the National Pension althogther. One has to save during his working life and buy a private pension scheme. Those that are not able to do this for any reason, too bad you starve or beg.

This is where we are heading folks! The rich want it all.

V. Cauchi

Aug 20th 2012, 12:06

Things are worse off for persons born after 1962. While the difference in income capping is 75%, the difference in pension received will only be 40%. At the current rate of inflation a pension will in 2027, when it will start being given at age 65, be very much equivalent to its present money's worth.

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