Pensions Reform Information, 2015
A Strategy for an adequate and sustainable Maltese pension system
Two years ago Government appointed a group of experts with the aim of drawing up a comprehensive strategy aimed at addressing current and future challenges of our pension system.
This Pensions Strategy Group has now completed its task and has presented a set of reforms to the pension system directed to secure adequacy, sustainability and solidarity over the long term. In crafting such reforms the Group has sought to introduce a milieu that incentivises people to change their behaviour as against opting for mandatory mechanisms.
Moreover, the Group has sought to balance adequacy and sustainability without recommending changes to the mandatory retirement age or social security contribution rate. It has sought to weave this balance to minimise, to the extent possible, impacts on disposable income and competiveness.
The Group was guided in its work by 5 principles on which it felt the foundations of our pension system should be based in the years to come. These principles are:
- the need for a clear definition of the objectives of the pension system;
- an adequate and sustainable pension system sustained by a strong active employment policy;
- the State pension should be a solid foundation, but not the only source of retirement income;
- the pension system to be socially sustainable needs to provide a fair balance between contributions and benefits across generations; and,
- to remain adequate and sustainable, the pension system needs to be able to evolve, particularly to respond to long term developments.
Guided by these clear principles, the Group thought about reforms that:
- address changing needs and issues relating to society and the labour market;
- ensure a socially adequate and sustainable pension system that provides for a fair balance between contributions and benefits across generations;
- could be made outside of the pension system to ensure that it is not the only source of income; and
- address challenges faced by current pensioners.
The proposed pensions strategy is now open for public consultation. The general public is invited to give its feedback about the proposed reforms and make its suggestions.
Such feedback can be sent by 31st July 2015, either by email on email@example.com or by post to:
Office of the Permanent Secretary
Ministry for the Family, Children’s Rights and Social Solidarity
310, Republic Street,
Valletta VLT 1110