Government to address pre-1962 pensioners anomaly on lower rates

The Labour administration will be resolving anomalies between pre-1962 pensioners and latter-day pensioners who are each paying different levels of contributions for different pension rates.

Labour was reacting to a proposal by the Nationalist Party issued by its pensioners section APAN, saying the PN will pledge the 70/30 pension payable to those born after 31 December 1961, to all pensioners.

The PN said pensioners born before the end of 1961 had become second-class pensioners, even though those enjoying a higher pension after the threshold date were also paying higher contributions. “The PN demands that all pensioners who receive a two-thirds pension should have an adequate compensation for the sharp rise in inflation that is eating out their monthly pension.”

Labour social policy minister Michael Falzon reacted by saying that the government had “invested” in the elderly, by giving them peace of mind and stability in the face of challenges.

Falzon said it was the PN-led administration which in 2006, had decided to actually ‘create’ two tiers of pensioners – those born before and after 1962 – by just passing on two-thirds of the annual Cost of Living Adjustment compensation. The full COLA was only added in 2008.

Falzon said Labour had increased pensions from one budget to the other – up to €70 more per week – and said Labour will be introducing changes so that the highest pensionable income for those born before 1962 will increase at a faster pace, to reach the same levels as those who were born after 1962.

Labour MP Romilda Zarb accused the PN of not being credible on its social policy proposals. “This government has helped families and the elderly to be able to withstand challenges... we’re not resting on our laurels, or on the fact that Malta currently has the lowest unemployment rate in the EU. This government has its hand on the pulse of the nation, even at times of unprecedented international challenges.”