Forum says no to increased retirement age

The federation of unions Forum has denounced plans to increase the retirement age further, as totally unacceptable.

The 11-union forum said that it was adamantly against the life-expectancy principle and that every effort had to be made to strengthen first pillar pensions.

“The second pillar must not be mandatory at this stage. As for the third pillar pension, every effort must be made to minimise risks. Efforts must be made to increase tax incentives for the third pillar pension. The use of schemes where individuals save for their pensions must be encouraged,” Forum president John Bencini said.

Forum said it agreed that pensions were in dire need of reform if their sustainability was to be guaranteed over the next decade.

But it said that pensioners were already finding it hard to make both ends meet due to hiked utility bills and fuel prices.

“Unemployment is down and the number of gainfully occupied increases each passing year. Unfortunately, we still have a very low female labour participation and there is much room for improvement. Family friendly measures need to be strengthened,” Bencini said.

The former teachers’ union boss also sounded a pessimistic note on Malta’s future development in these areas. “Malta will always lag behind most of Europe. First due to our culture, which although is changing nonetheless has its effect on housewives staying strictly at home taking care of the house, children or elderly relatives.

“The second is due to the relatively high fees for childcare and serious lack of childcare centres. A good incentive to assist families in balancing careers and family constraints by increasing parental leave was not supported by government.”

Forum also said the 40 years’ contributory period for national insurance payments was discriminatory against women who are at times constrained to abandon their work for a period of time on unpaid leave, to raise children.

“While it is positive that mothers are given credit for each child they have, the same should be allotted to those who participated in non-compulsory education, sixth-form, undergraduate university as well as post-graduate studies. This category should also be given credit by reducing the minimum number of NI contributions. Similarly, years spent as an apprentice where NI was not paid by the employer should also qualify for credits.”

Bencini said Forum was also in favour of early retirement in certain cases such as professions which require mental and physical strength throughout. “Workers should be given the opportunity for early retirement if they opt so and are ready to give up part of their pension.”

He added that proposed home reversion plans were not feasible since property is the only possible asset of a family after years paying a mortgage. “This proposal would adversely affect the individual psychologically, added to consequences brought about by old age and inactivity.”