Alternativa Demokratika’s Michael Briguglio discusses pension reform (August 20) and, like some others, recommends re-introduction of second pillar (occupation/service) pensions after these were abolished for those who started paying National Insurance contributions after 1979 (with some exceptions, such as parliamentarians).
He omits to explain how his party would remedy this discriminatory financial punishment the Maltese state has imposed on those with non-commuted second pillar pensions from other EU countries. As Joseph V. Caruana (August 2) and Joseph Grech (August 26) have reminded those who wish to listen, the Maltese state has been defrauding some or most of the pension due to those who paid NI and who also have some non-commuted second pillar pension from another country.
All the talk about the social solidarity of our welfare state will not impress those like Messrs Caruana and Grech, whose pension money they worked for has been used by the state to subsidise the non-means-tested free health services and tertiary education with stipends of others including, of all people, the seriously well-off.
All local media commentators on the recent pensions EU Green Paper, including our Green Party, have conveniently ignored the recommendations, within this EU document, for portability of pensions (including second pillar/occupational/service ones) across EU states. Current Maltese pension law does not permit portability of second pillar pensions earned in other EU countries and punishes those who have worked in both Malta and elsewhere.
Our organisation recommends improving our basic pension system by removing its present in-built discriminations and raising the maximum pensionable income so that a reasonable safety net is achieved against poverty in old age.
We are against the re-introduction of second pillar pensions with their serious economy side effects. We would not be against fiscal encouragement of private third pillar systems once the basic pension has been satisfactorily reformed.