The proper sharing of the common good is one of the requirements leading to a just society. Unfortunately, we are far away from attaining this goal.

The Head of State and the head of the Catholic Church are worried about the prevailing situation with regard to a just society, in spite of the fact that Malta is experiencing an economic boom.

The Archbishop pointed out that “society is quickly evolving from democracy to kerdocracy”. On the other hand, the President remarked, among other things, that “it is immoral to reduce people who have worked so hard and those who genuinely are not able to work to the brink of poverty”.

The Alliance of Pensioners’ Organisations reflected on the above remarks and would like to comment from the point of view of pensioners. Thousands of pensioners have worked for over 40 years and paid social security contributions according to the law.

Thousands are entitled to a service pension on retirement for giving a service in line with a contract agreed upon by the employee and the employer.

In the circumstances, the alliance would like to focus on and point out several “immoralities” that are pushing pensioners to the brink of poverty.

A proper indexation of pensions to safeguard and enhance the purchasing power of pensioners should be put in place

One of the pensioners’ main concerns is that interest rates on bank accounts have been cut drastically, further affecting their supplementary income.

No increases are made to a service pension paid in terms of the Pensions Ordinance (Treasury pension) to public officers employed by the government.

A service pension is deducted from one’s two-thirds pension entitlement.

Where a service pension is commuted in full, it is not considered for abatement from the two-thirds pension. Therefore, pensioners who have commuted their pension in full are entitled to a full two-thirds pension.

On the other hand, where a pensioner has commuted part of the service pension, it is deducted from the two-thirds pension.

By law, a married person maintaining a wife is entitled to a retirement pension at the married rate. When the wife becomes entitled to a pension herself, the married rate paid to the husband is reduced to that of a single person.

The two-thirds pension has become an illusion for persons whose pension is calculated on revenue in excess of the maximum pensionable income. This is presently equivalent to scale 12 (€18,096) of the public service. This is because the maximum pensionable income has been kept artificially low for over a quarter of a century. When the two-thirds pension scheme was introduced, the maximum pensionable income was equivalent to the salary of the President.

If the 1981 ceiling of the maximum pensionable income – €15,723 – was revised in line with inflation, the figure in January 2016 would have exceeded €34,000.

A proper indexation of pensions to safeguard and enhance the purchasing power of pensioners should be put in place. This will be the proper tool to avoid the risk of poverty faced by thousands of pensioners when they grow old. Cost of living adjustment increases are inadequate to keep up with the current financial constraints.

The guaranteed national minimum pension was introduced in January. Together with the supplementary allowance, the benefit paid is now equivalent to 60 per cent of the median income. This benefit is now paid in full to a single person. However, in cases of a two-person household, such as a married couple, the 60 per cent of the median income is not paid in full.

The alliance is very much concerned about the above-mentioned injustices. Politicians should stop ignoring this social problem. The regular erosion of the purchasing power of pensioners due to increases in the prices of goods and services is a real problem.

Measures that reduce the income of pensioners without a valid reason are not only unjustified but immoral. It is very unfair for pensioners to move towards the poverty threshold as they grow older.

In a just society, efforts would be made to ensure that those in receipt of a pension, together with those at the lower end of the wage structure, would, at least, have the value of their incomes maintained.

In this regard, Malta lacks a sense of true justice, for otherwise, how can one justify inflation-proofing income at social wage level (minimum wage plus) only? Those above the threshold will thus always fall back. The higher up the ladder one is, the bigger the loss of the value of such incomes (pensions, in particular).

In the circumstances, while we acknowledge and welcome our economic growth, we feel it is the duty of politicians to rediscover and rekindle their social conscience. Massive material gains, fraud, corruption, tax evasion, money laundering, destruction of the environment, etc, are the enemies of social justice and a just society.

Moral and social values should be a priority and included in the national agenda, together with our economic achievements. The economic and the social should be two faces on the same coin. This is the way forward and how the common good can be enjoyed fairly by both the rich and the poor.

The fulfilment of our dreams for a just society should always be our target.

Carmel Mallia is president of the Alliance for Pensioners’ Organisations.