Reforms in State pensions announced in the Budget may be of some help to 12,000 pensioners described as being among the most vulnerable but to thousands of others they fall shortof expectations.

In the light of all the talk by the government that, once the economy is doing well, it is time to think about the pensioners’ lot, the outcomeis disappointing.

Welcome as the rise in the minimum pension is, it is doubtful if it is enough to take many of the ‘most vulnerable’ out of the risk of poverty. While the economy is doing well, with the growth rate ranking among the best, if not the best, in the European Union, there are serious gaps in the distribution of wealth.

While some segments of the population are getting richer, others are taking only a trickle. The latest figures from the EU give a harrowing picture of the situation. The number of people considered to be at the risk of poverty has gone up by four per cent, to 23.8 per cent, last year.

In other words, the island had 100,000 people considered to be at the risk of poverty in 2014.

Considering the national debate that has been going on about the plight of these people, one would have expected more tangible moves.

The weekly rise in the minimum pension, announced by the Finance Minister, needs to be clarified as well. The national minimum pension is €138 per week for a married person and €119 per week for a single person.

Does the minister’s statement mean these will get a rise of €8.92 and€8 respectively?

If the government wanted to bring about a real improvement in the situation of a large swathe of pensioners, it should have found the means to grant the guaranteed national minimum pension, equivalent to 60 per cent of the median income, as from next year. According to the Budget speech, this rate is now only expected to be reached in 2027, that is, 12 years from now.

And what about the rest of the pensioners, those who are on the two-thirds pension? Does the government think their pension, which is topped up by the annual cost-of-living allowance, is adequate for them to make ends meet today?

With income from savings slashed to the bone following the sharp fall in interest rates on deposits, most are far from enjoying the living standard they had hoped to get when they retired.

In this case, there is a glaring discriminatory treatment in that there are people in society whose two-thirds pension is uncapped.

This situation is no longer tenable. The ceiling on the two-thirds pension has now been on for more than 20 years, a matter that needs to be seen to with some urgency if the country wants to do justice with pensioners.

The maximum pensionable income ought to be the same to all categoriesof pensioners.

There is also need of a proper indexation of pensions to deal with the erosion of the purchasing power of pensioners. The issue over service pensions needs to be settled once and for all and the top-up pension of €300 to those over 75 is meagre.

These matters can be seen to if the government sets its priorities right. Cutting unnecessary expenditure, such as, for example, a good chunk of the scandalous travelling going on at the cost of the taxpayer, reducing the ever-growing number of consultancy jobs and desisting from unnecessarily overloading the workforce in the public service, will help.

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