The effect of Service Pension on a Contributory Pension

Service Credits 

Effective January 5, 1987, a former member of the Malta Police Force or the Armed Forces of Malta who retires or has retired on a full pension after twenty-five (25) years of service, and who is not gainfully employed prior to reaching pension age, will be granted service credits for the period they remain unemployed before reaching pension age.

Pensionable Income of Disciplinary Forces

Effective January 1, 2020, the pensionable income used for assessing a Contributory Pension for a former member of the Malta Police Force, the Armed Forces of Malta, the Civil Protection Department, or the Correctional Facility, born before January 1, 1962, who retires or has retired with a full government pension as their primary pension after completing at least twenty-five (25) years of service before reaching pension age, and who is granted a service pension, shall be determined as follows: it will either be the amount specified in the Thirteenth (13th) Schedule or the pensionable income that would have applied if the individual’s last day of employment, following their acceptance of retirement arrangements, had coincided with the retirement or invalidity date, whichever amount is higher.

Service Pension Abatement

The current Service Pension abatement began in 2008.

A yearly abatement of two-hundred euro (€200) is established under the Social Security Act, ensuring its continuation each year.

As of now, the total amount abated from the Service Pension stands at three-thousand and six-hundred and sixty-six euro (€3,666).

Age 72 Proviso through the years

Effective January 4, 1992, if a Service Pension has been partially commuted and the pensioner has reached the age of seventy-two (72), only fifty percent (50%) of the commuted portion will be considered. If the Service Pension has been fully commuted, it will no longer be considered.

Effective January 5, 2019, for partially commuted Service Pensions where the pensioner has reached the age of seventy-two (72), only twenty-five percent (25%) of the commuted portion will be considered.

Effective January 1, 2022, if a Service Pension has been partially commuted and the pensioner has reached the age of seventy-two (72), the commuted portion will no longer be considered when calculating the contributory pension.

More than one Service Pension

Effective January 4, 1992, if a person receives two or more Service Pensions, only the highest of these pensions will be considered a Service Pension for the purpose of assessing, revising, or re-assessing a pension.

However, solely for the purpose of assessing, revising, or re-assessing a Retirement Pension, if a person receives two or more Service Pensions and one of them is payable by or on behalf of the United Kingdom Government, the Director may choose, on the person’s behalf, which of these Service Pensions will be considered the Service Pension. This choice can be made only once.