No mandatory second pillar pensions under Labour, Muscat says
No mandatory second pillar pensions under Labour
Private pension schemes, economic growth and a bigger overall workforce would guard against the need to introduce a mandatory second-pillar pension within the next legislature, Labour leader Joseph Muscat said this morning.
Speaking outside St Vincent De Paul residential home, the PL leader said Labour was committed to not raising the retirement age any further and he pledged to begin the process of increasing the minimum pension until it reached 60 per cent of the national average income - something he admitted would not be achieved within one legislature.
Dr Muscat however did not explain how the PL reconciled its calculations with those of a government-appointed pensions working group, which last year found that even a massive increase in workforce participation would not be enough to make Malta's pensions system sustainable. The group's report also said a second-pillar pension system was necessary - something social partners have agreed to oppose.
Neither political party has ever directly responded to the report findings.
Dr Muscat argued that some of the working group's conclusions were "contradictory" and said the PL would meet with group members to better understand their reasoning. He added that the government had never made its position on the working group report clear.
The PL leader also listed some of his party's other proposals for the elderly. Those with a home carer would be exempt from paying stamp duty for their carer, while pensioners who continued to work would get a full pension.
A comprehensive law regulating elderly homes would be enacted, while specialised "patient hotels" would offer short-term care for the elderly. Day care centres would be turned into "lifelong learning hubs" to better match lifelong learning aims, Dr Muscat added.
The PL leader declined to enter into the merits of the Presidential pardon granted to George Farrugia in exchange for evidence concerning oil procurement corruption. He said the pardon could only be judged on the basis of what evidence emerged from it.
He however called on the Prime Minister to make a clear statement about the emails published yesterday by The Sunday Times, which make reference to an "AG".
"I don't want to speculate, but everyone can read," Dr Muscat said. " Austin Gatt should clear the air with a proper declaration. And the government's reply yesterday was very weak - in fact it was no reply at all," he said.
Dr Muscat also said that Anglu Farrugia had been informed of the PL decision to send him to a Falklands conference as a party representative before the announcement was publicly made. He however declined to say when party officials had first approached Dr Farrugia with the offer.
20 Comments
Post comment
Please sign in or create your Account to post comments.
m farrugia
Feb 11th, 18:17
tajjeb id dinja kollha tghid li ghandha problem bil pensjonijiet u malta le.ha isolviha bit tkabbir flekonimija
taf kemm ha jkabbarha lekonomija, billi irahhas il kontijiet tad dawl u ma issir l-ebda power station ghax mghandux pjan tajjeb, imbaghad idahhal ruxmata taxxi u per ezempju ma jinghatawx incentivi imhabbra fil budget bhal rohs fl income tax, u taf kemm tikber hekk lekonomija bis sekondi
Joe Grech
Feb 11th, 12:55
Why is the Pensions Situation so very bad? Can anyone send in a comment to explain that?
Where funds intended for the Pensions abused and used for other things instead?
Second pillar pensions may probably be required to help improve the situation but making them mandatory is the real problem. Many of those struggling against the rising cost of living will find it difficult to pay.
David Borg
Feb 11th, 12:28
He promises the world with no idea about their repurcussions.
Suffice to say that his plans on pensions are diametrically opposed to the European Commission's views on sustainability: http://www.timesofmalta.com/articles/view/20120217/local/Malta-told-to-speed-up-pace-of-pension-reform.407201
Silvan saliba butler
Feb 11th, 11:54
Ghalxiex kull ma jghid jm tridu tmaqdruh u tkissruh ? Xi tridu mela tibqaw tahdmu sa xi 70 sena ! Jek proposta hija tajba , gejja min fejn gejja hija tajba l aqwa jkollok l hegga li timplimentha ! Populistic huwa min wara li pl hareg l proposta tat tablet ftit wara hareg jghid li l proposta idea tieghu ! Jew min qal li l manifest tal pl huwakollu ideat tieghu ! Jaqbadni d dahk jiena nisma :-)
Denis Pace
Feb 11th, 18:47
Huwa zball kbir li se nbatuh meta naslu ghal pensjoni fi zien 10-15 sena.
Mr ALBERT LEONE GANADO
Feb 11th, 11:34
Promoting long term Individual Savings accounts in approved schemes through tax incentives and benefits often called the third pillar is a much better solution than a mandatory second pensions pillar . It allows the individual a certain level of control in investing for his retirement. However our Government should plan a strategy to partially fund its state pension commitments.
Gordon Farrugia
Feb 11th, 13:57
They just have to look at the UK and how they do it...
BUT the problem is that the local market is too small and politicians are adverse to seeing Maltese money invested overseas (very short-sighted view but well...). The consequence is that they keep dragging their feet and for them third pillar means only another National Insurance tax which people can't afford
Jo Camm
Feb 11th, 11:18
Whoever introduces this "mandatory second-pillar pension" should first of all make sure that these pension schemes are 100% secure. Some such pension schemes fell through in other countries and the government (i.e. taxpayer) had to make good not to let pensioners suffer.
Mr Joe Micallef
Feb 11th, 11:08
The ineptness of this wannabe populistic little opportunistic politician with no foresight or ability to read well ahead of times, is exposed every time he opens his mouth.
Tony Borg
Feb 11th, 12:30
Looks like Joseph Muscat must be getting under your skin. Calm down Mr. Micallef. Few weeks to go yet. Plenty of time for heart attacks!!!!
Andre Briffa
Feb 11th, 12:47
Well said.
M BUHAGIAR
Feb 11th, 14:40
I sympathize really with you PN apologists cos yesterday must have been a very difficult day for you to digest!! I bet you had a rough night .
But be strong , your agony will soon be over!
Gordon Farrugia
Feb 11th, 10:57
The problem is that in malta we have no tax incentives to save! If I buy international shares I have to pay 35% capital gains, on bonds 15%. In the UK they have Individual Savings Accounts and Sipps which is a kind of account where you can put money and invest tax free - why don't we have any such schemes in Malta. A private pension isn't the answer - you retire and they may be bust by then...
A Spiteri
Feb 11th, 10:47
end the nationalised pension scam...give incentives to people to invest in private pension policies and for people to take on these private pensions!
pension is surely the area where one day the government will admit defeat, even if we have a 100% government!
S Portelli
Feb 11th, 10:32
This is a time bomb which needs to be addressed ! This has been ignored for quite some time by both parties.
John Grima
Feb 11th, 10:30
'the PL would meet with group members to better understand their reasoning. ' Would it not be better if the labour party had met these group members to understand their reasoning BEFORE making policy. One shouldn't make policies on presumed facts but policy should be done on actual facts.
m. borg (slm)
Feb 11th, 11:29
Well you could list some examples gonzi did as you are saying.
John Grima
Feb 11th, 13:12
I am not saying that one side did things right and the other did not. All I am saying is that it is a better way of operating if one gets all the facts before deciding about a policy. The fact that Gonzi did things wrong does not mean that it is OK for the other party to do things just as wrong especially if they are putting themselves forward to be a better alternative. cont/
John Grima
Feb 11th, 13:14
I am neither with one party or the other. All that I am saying is that there is a better way to decide on a policy by getting all the facts first before making a decision.
Michael Borg
Feb 11th, 10:06
within the next legislature then after we see uxxx !!! the problem wont be seen in the next 5 years so why worry tioday we live tomorrow naraw !!!
Please choose the reason of your report below: