MCESD members expressed general agreement with the government’s proposals on pension reform during a meeting with the Opposition today, although disagreements persisted over second pillar pensions.
PN deputy leader Mario de Marco and social policy shadow minister Paula Mifsud Bonnici met social partners at Parliament to discuss the government’s consultation document: “Strengthening of the Pension System: a strategy for an adequate and sustainable Maltese pension system”.
In her introductory remarks, Dr Mifsud Bonnici said the discussion was particularly important in light of concerns over the ageing population.
She highlighted the importance of ensuring a good quality of life for the elderly as well as providing a guarantee for young people entering the workforce.
Stressing the need for ongoing reform, Dr Mifsud Bonnici said expenditure should not be increased but that any debate should be framed in the context of EU commitments to reduce the number of people living in poverty.
Kevin Bonello, president of Forum group of trade unions, said the trade union confederation generally welcomed the proposals, but believed more measures should have been proposed for current pensioners.
He also expressed concern over a measure which would allow people of pensionable age to keep working, which he said would negatively impact opportunities for young workers in a number of sectors.
A representative of the Chamber of Commerce emphasised the importance of ensuring competitiveness and the sustainability of public finance.
He said he was pleased with the government’s decision not to push forward the introduction of second pillar pensions, which he described as “inopportune”.
The introduction of second pillar pensions would require employers and employees to pay a percentage of their monthly income into a personal pension account.
MHRA president Tony Zahra, however, said that while it should not be rushed, second pillar pensions were inevitable, and pointed out that the uptake of third pillar pensions had been negligible.
He said it should not be the government’s duty to ensure that everyone is rich, but only to provide a safety net against poverty.
He also questioned the government’s population growth estimates, which he said were highly optimistic and called into question the rest of the report.