[WATCH] Working pensioners could take up job opportunities for the young- ForUM

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PN deputy leader Mario de Marco together with shadow minister for social policy Paula Mifsud Bonnici and spokesperson for the elderly Robert Cutajar today held a consultation meeting to discuss the proposals made for the pensions reform.

During the meeting ForUM president Kevin Bonello said that the group wanted to see more measures to fight poverty among the elderly but suggested that encouraging more pensioners to remain in the labour market could have negative consequences for young, fresh graduates.

"This measure can impinge on the employment opportunities of young people," he said, adding however that the incentives taken to encourage teaching and tertiary education were noteworthy.

On his part PN deputy leader Mario de Marco said "today's meeting is meant for the opposition to see the opinion of MCESD members about the proposals being made, and where possible to take these opinions and make new proposals," De Marco said.

The 27 recommendations, De Marco said, are meant to make pensions sustainable and adequate for Maltese families.   

A chamber or commerce representative said that the chamber was glad of the decision not to push for the introduction of second pillar pensions, as he felt that it was “not the right time to introduce this measure”.

“The introduction of second pillar pensions,” (which would require employers and employees to pay a percentage of their monthly income into a personal pension account,) “would require extensive and long term blue prints,” he said.

De Marco said that the previous legislation had suggested a reform of the system every five years to ensure that the system was as up to date and sustainable as possible.

MHRA president Tony Zahra agreed that second pillar pensions should not be rushed, but that they were also inevitable.

“It should not be the government’s duty to ensure that everyone is rich, but to provide a safety net against poverty,” he said. He further questioned the government’s population growth estimates, which he said were highly optimistic.

“The figures in question informed many of the recommendations made in the report,” he added, further questioning the validity of the recommendations.

Mifsud Bonnici said that PN believes in public consultation above everything.

"In the past the reform in the pensions system was meant to have as little impact as possible and to be as sustainable as possible," she said.

She added that research used in the preparation of the proposals suggested that by 2060 men will live some 8 years longer than before

"The possibility of populations becoming so much older obviously points to greater and more diverse and ever changing needs," she said stressing the needs for reforms every five years to ensure sustainability.

"We also need these reforms for the local economy and to promote active ageing and ensure that pensions respect the life of the elderly," she said recalling the EU's aims to reduce poverty and unemployment by 2020 as being tied to these reforms.

The consultation with the relevant stakeholders then carried on behind closed doors.