Proposals on pension reform were generally welcomed by unions and employer groups yesterday, although disagreements persisted over second pillar pensions.

The differing views on the second pillar pension, a work-related pension paid by employee and employer, emerged during a meeting of members of the Malta Council for Economic and Social Development with representatives of the Nationalist Party in Parliament.

PN social policy shadow minister Paula Mifsud Bonnici said the discussion was particularly important in light of an increase of two million people over 60 by 2060 across the EU.

She said the country’s pension scheme should ensure a good quality of life for the elderly and promote active ageing, as well as providing a guarantee for young people entering the workforce and ensuring continued economic growth.

A representative of the Chamber of Commerce expressed satisfaction at the government’s decision not to push forward the introduction of second pillar pensions, which he described as “inopportune”. The government has ruled out a second pillar scheme, which would oblige employers and employees to pay a percentage of their monthly income into a personal pension account, but the Opposition has said it is central to ensuring pensions’ sustainability.

However, Malta Hotels and Restaurants Association (MHRA) president Tony Zahra said that while it should not be rushed, the introduction of second pillar pensions was inevitable, and pointed out that the uptake of third pillar pensions – private pensions – had been negligible.

Meanwhile, Forum president Kevin Bonello said the trade union confederation generally welcomed the proposals but expressed concern over a measure which would allow people of pensionable age to keep working.

This, he said, would negatively impact opportunities for young workers in a number of sectors.