The Finance Ministry this morning issued four early retirement/resignation schemes for Malta Shipyards workers, just days before it will issue an international call for interest in the privatisation of the shipyard.

Finance Minister Tonio Fenech said the schemes were open to all workers at the dockyard and could potentially cost the government €49 million.

The schemes are an improvement on those issued in 2003.

The main points are:

Scheme A, for workers aged 56 and over will enable such workers to immediately retire on two-thirds pension, while still being able to take on a new job. There will be a tax free lump sum based on every year of service, rising from €60 to €121 per year of service.

Scheme B, for those aged between 50 and 55 will enable such workers to become entitled for a pension on turning 56. They too will get the lump sum payments linked to years of service as in scheme A, capped at €28,000 and lump sum pro-rata ex-gratia payment equivalent to 20 weeks pay for every year remaining to age 56. Social security contributions will be covered by government until retirement or until a new job is found.

Scheme C, for the voluntary resignation of those aged 40 to 49 also includes ex-gratia payment, capped at €45,000.

Scheme D, for all the younger workers includes a lump sum equivalent to eight weeks pay for every year of service up to a maximum of €40,000. In all cases, the minimum payable is €11,650.

Applications for the schemes open tomorrow and workers will be told that they will get what they are entitled to in full if they apply up to the end of September, but the benefits will be reduced to 85% if they apply in October.

Details can be found on skemitarzna.com from tomorrow.

Finance Minister Tonio Fenech in the video clip above, explains why the schemes could not be issued after the buyer of Malta Shipyards is identified.