A ‘special’ clause inserted in an early retirement package given to Parliamentary Secretary Michael Falzon by Bank of Valletta – which allows him to return to his job if he leaves government – is unique, The Sunday Times of Malta has learnt.
Bank of Valletta confirmed that this is the first time any employee has been given an option to return, though it added that none of its staff had ever been appointed to Cabinet. Dr Falzon also received a €260,000 pay-off.
The Malta Union of Bank Employees criticised the special provision, saying it defeated the object of early retirement, while it also objected to a post at BOV being left vacant.
In Dr Falzon’s ministerial declaration of assets, published last week, he declared that he received €260,000 from the bank as an early retirement payout.
The rules of early retirement have to have some flexibility to cater for evolving circumstances
When contacted for a reaction, BOV said: “While the bank cannot comment on individual cases, the scheme allows employees aged over 50 to request retirement on various grounds, including health, or on appointment to a senior public post.”
It added: “In the latter case, the employee retains the right to return to his or her employment upon termination of the appointment. In such cases, the employee is obliged to return retirement benefits received on pro-rata basis.”
Asked to say whether this clause was given to other employees and to specify the categories of employment falling under “senior public post”, the bank did not reply.
“We can only add that the granting of early retirement to officials who are appointed for a definite period in a senior public post is restricted to executives in non-collective agreement grades,” BOV said.
“It is also the first time that an employee of the bank had been appointed to serve in a government Cabinet. So the rules of early retirement have to have some flexibility to cater for evolving circumstances,” BOV said.
MUBE said: “We know of no other case that will allow the post [of the retired employee] to remain vacant for a number of years pending the person’s decision on whether he/she would want to return to the bank or not within a stipulated time-frame.”
Senior BOV officials told this newspaper that the concession given to Dr Falzon was already being challenged by some employees who were given early retirement packages in recent years.
In the past five years, BOV has granted early retirement packages to 117 employees but none were given the option to return.
Dr Falzon did not respond to questions.