The effect of Service Pension on a Contributory Pension

Service Credits 

With effect from the 5th January 1987, an ex-member of the Malta Police Force or of the Armed Forces of Malta who retires or has retired from the service on a full  pension (on 25 years of service)  from Government  as  his  employer  on completion of service prior to reaching pension age, for  any  period  during  which  he  is  not  gainfully occupied and has not yet reached pension age will be awarded service credits

Pensionable Income of Disciplinary Forces

With effect from the 1st January 2020, the pensionable income utilised for a Contributory Pension assessment, of an ex-member of the Malta Police Force, the Armed Forces of Malta, the Civil Protection Department of Malta or of the Corradino Correctional Facility, born before the 1st January 1962, who retires or has retired from the service with a full Government pension as his main pension, on completion of at least twenty-five (25) years of service prior to reaching pension age and who is accordingly granted a service pension, and who later becomes entitled to a pension in respect of retirement or invalidity in accordance with the SS Act, shall be that specified in the Thirteenth Schedule, or the pensionable income which would have otherwise resulted  if that person’s last day of employment, after that person would have accepted the arrangement to retire from service, had been the date of retirement from the service or the date of invalidity, whichever pensionable income is the higher.

Service Pension Abatement

Current Service Pension abatement started as from year 2008.

Yearly two-hundred euro (€200) abatement is enacted in the Social Security Act, thus is guranteed to continue for every year.

Current total service pension abated amount is now three-thousand and four-hundred and sixty-six euro (€3,466).

Age 72 Proviso through the years

With effect from the 4th January 1992,  where a Service Pension has been commuted in part only and the pensioner has reached his 72nd birthday, 50% of the commuted part only of such Service Pension shall be taken into account.

With effect from 4th January 1992 where such Service Pension has been commuted in whole, it shall no longer be taken into account for the purposes of this Act.

With effect from 5th January 2019, where a Service Pension has been commuted in part and the pensioner has reached the age of seventy-two (72), twenty-five per cent (25%) of the commuted part only of such Service Pension shall be taken into account.

With effect from 1st January 2022, where a Service Pension has been commuted in part thereof only and the pensioner has reached the age of seventy-two (72) years, the commuted part shall not be taken into account when calculating the contributory pension.

With effect from 1st January 2024, service pensioners who have been boarded-out and retired with the service pension early due to illness, will start to see the mentioned adjustment of the commuted pension part, after twelve (12) years from when they started receiving the pension of service and not when they turn seventy-two (72) years old.

More than one Service Pension

With effect from the 4th January 1992, where a person is in receipt of two or more Service Pensions, only the highest of such Service Pensions shall be deemed to be a Service Pension for the purpose of assessing, revising or re-assessing a pension.

However, and solely for the purpose of assessing, revising or re-assessing a Retirement Pension, where a person who is in receipt of two or more such Service Pensions one of which is payable by or on behalf of the United Kingdom Government, the Director shall have the right to elect, on behalf of the person, which of such  Service  Pensions is to be deemed to be the Service Pension. The right to such election shall be exercised only once.