Free public transport for the elderly, the introduction of second-pillar pensions and a better distribution of wealth are among the key proposals made by the National Association of Pensioners.
The call was made in a resolution approved recently during an annual general conference held at the Catholic Institute in Floriana.
On a positive note, the association welcomed the 62+ Government Savings Bond rolled out last year. The scheme was meant to offer pensioners an additional stream of revenue through an interest rate of three per cent payable twice a year.
Furthermore, the resolution noted an improvement in the income of single persons, and welcomed the decision to increase the tax-free capping on pensions to €13,200.
However, the association expressed concern on the privatisation of the three State hospitals particularly in the wake of fears that public healthcare would not remain free and that the level of service would decline.
In view of this it called for a revision in the mechanism used to calculate the Guaranteed National Minimum Pension and to address the service pensions’ saga once and for all.
The latter affects those who receive an additional pension from the UK having been employed by the British services prior to their departure from Malta in 1979.
The controversy revolves around a decision which had been taken decades ago whereby this service pension was being deducted from the two-thirds pension.
However, as from 2007 the service pension is being increase by €200 per year.
Another proposal being made is to make an upward revision of the maximum eligible pension, as at present those paying higher contributions during their career are being penalised as they are getting the same pension of others contributing a lower amount.
READ: In 2016, the Finance Minister had hinted at second-pillar pensions
The pensioners’ association is also recommending favourable interest rates and a tax exemption from income generated from the 62+ Government Savings Bonds.
However, one of the most radical and controversial proposals is for the introduction of second-pillar pensions whereby future beneficiaries and employers contribute a sum into a pension fund.
To date, the government has resisted calls to consider such schemes on the grounds that this would place a significant burden on employers and consequently dent their competitiveness.
The National Association of Pensioners is also suggesting the make the bus service free of charge for the elderly.
A copy of the resolution was sent to the President, the Speaker, the Prime Minister, MPs and other State entities.