Prime Minister Joseph Muscat today promised that a Labour government would continue to strengthen pensions after the June 3 election. 

Addressing an activity in Marsa, Dr Muscat said the aim was to increase pensions to 60 per cent of the minimum national income. The target was to give pensioners an €8 weekly increase in pensions, he said.

Dr Muscat promised that a Labour government would not increase the retirement age or national insurance contribution.

He said his government would remove an anomaly which previously disqualified pensioners who retired after 2008 from receiving the annual cost of living adjustment.

Widows would gradually qualify for a full pension upon reaching retirement age, he said.

Widows would gradually qualify for a full pension upon reaching retirement age

Full invalidity pensions would be given to those certified to be suffering from a terminal illness.

He said legal amendments would be introduced to protect the pension rights of people who got divorced or separated. This measure, which he said would mainly benefit women, would ensure that those who spent time out of work to raise their families would have their right to a proper pension protected.

People working multiple part-time jobs would be able to pay national insurance contributions on all these jobs.

Presently, Dr Muscat explained, this contribution could only be paid on one part-time job.

He said the government would continue to incentivise private pension plans by offering a maximum tax credit of €300 on a €2,000 annual contribution. The principle that no taxes would be paid on pension earnings up to €13,000 would be strengthened, he said.

 

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