Government cautious on European pension reform

“Reforming the pension system has in fact been a priority for the Maltese Government for the last decade. The rationale has always been to introduce a comprehensive pension reform program with the main objective of safeguarding the future sustainability and adequacy of Malta’s pension system,” the ministry for education and employment said.

The Maltese government has in fact started to implement the process in a gradual manner, with the adoption of a set of parametric reforms to the Pay As You Go component of its pension system in 2007. Measures have already been introduced to increase the national retirement age which is being gradually raised 65 and also the extension from 30 to 40 years of the social security contribution period on which pension entitlements are worked out.

Discussions are also underway regarding the possible introduction of further mandatory or voluntary funded pension schemes. 

“The Ministry considers that the debate on reforming social security and pensions should be done in total respect of the principle of subsidiarity. Member States should consequently determine the way in which to ensure the adequacy of their pension systems as well as to what adequate retirement income should entail in their Member States.”