AD calls for pay rise to low-income pensioners

The pensions working group is ignoring the plight of the over 22,000 pensioners who have to get by on less than €500 a month, Alternattiva Demokratika chairperson Arnold Cassola said.

Noting that the working group has proposed a weekly rise of €20 for future pensioners, Cassola said that this should be extended to pensioners currently earning under €500 a month and that the raise could be financed through an increase in the income tax rate or social security for high-income earners.

Cassola also called for a second pillar pension to be introduced for people born after 1963, to be financed through contributions by the employer, the employee and the government.

“Unlike the present first pillar pension scheme, where contributions go into a common general fund, the second pillar contributions would be invested  in funds in the individual name of each person, to ensure a healthy income for the said individual at retirement,” Cassola said. “The lack of implementation of a second pillar pension scheme will lead to further poverty and erosion of pensions income in the future. It is irresponsible to continue to ignore the writing on the wall.”