This newspaper quoted the Prime Minister as saying that “following the sterling work to create jobs and increase pensions, we are now making Malta future proof”.
It was also pointed out that “future proof means anticipating the future and minimising the shocks of future events”.
It is commonly acknowledged that this administration did sterling work to generate jobs. However, as regards increases in pensions one begs to differ and the reality is quite different because only a small percentage of pensioners received an increase in their pension rate.
During the last legislature, the first measure to raise pensions to address the risk of poverty problem among pensioners was implemented, coming into effect in January 2016.
It rightly affected those entitled to the national minimum pension rates.
In the case of a single person, the rate went up by €11.61 a week and that of a married couple just by €3.80 euro a week. This discrepancy was not deemed to be a proper and fair way of tackling the risk of poverty among pensioners.
In fact, pensioners organisations’ representatives drew the attention of Social Security Department officials to the unfair and awkward decision. They were promised the situation will be handled and that adjustments would be made in the Budget for 2017.
Strangely, the 2017 Budget did not address the problem as was promised and provided for an increase of just €4 per week for a married couple, the rate rising to €147.23 a week. No extra increases were awarded to a single person and the weekly pension rate remained €131.47.
A solidarity pension fund to provide for future unpleasant events should be considered
It must be pointed out that a person is considered to be at risk of poverty and social exclusion if the income is less than 60 per cent of the equivilised median income that stands at €156 a week for a single person and €233 for a married couple.
It was promised that pensions will be increased by €4 a week as of January 2018 and by a further €4 from January 2019. There was also a change in the calculation of the pensionable income of widows entitled to a survivors’ pension.
It has to be pointed out that, so far, there is no commitment by the administration on whether the promised increases of €8 a week over a period of two years applies only to pensioners entitled to the national minimum pension or to all pensioners entitled to contributory and non-contributory pensions.
One hopes the Budget for 2018 will refer to this issue and indicate clearly the timeframes as to when the increases will be given and to whom.
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This point is being raised because there are about 90,000 pensioners but, so far, the increases covered only a few.
This means that over 75,000 pensioners were not entitled to higher pensions. This majority only received a cost-of-living adjustment of €1.75 a week.
The above clearly shows that while one can blow one’s trumpet about achievements in the creation of jobs it is not the same when dealing with increases in pensions.
This administration has started the ball rolling with regard to higher pensions. Action had to be taken in view of the fact that thousands of pensioners are at risk of poverty and social exclusion.
Our first priority should be that of keeping our pension system sustainable and that an adequate pension could be granted so that a person can live in dignity on retirement.
Our second priority should be that of keeping our house in order and consolidate all the good the system achieved over the past 60 years. On the other hand, measures should be taken during this legislature to eradicate once and for all the injustices and discrimination that exists between pensioners.
When all this sterling work is done, then a plan to make Malta future-proof with regard to pension increases can be launched.
The idea of planning for the future and minimising the shocks of events yet to happen is very much welcomed and beneficial to all, including pensioners. A solidarity pension fund to provide for future unpleasant events should be considered.
Carmel Mallia is vice president of the National Association of Pensioners.