The Pensions Strategy Group has just launched a public consultation process on the next steps in the ongoing pension reform.
This is after the Group has completed its analytical report on the developments that have taken place in the pension system in our country in the last 5 years, while projecting the state of the pension system until 2070.
The report was tabled in the House, at the last sitting of Parliament before being adjourned for the Christmas holidays, by the Minister for Solidarity and Social Justice, the Family and the Rights of the Child, Michael Falzon.
This was done in accordance with the legal obligation stemming from the Social Security Act, which also stipulates that the report be discussed by the Parliamentary Committee on Social Affairs.
The report contains only a detailed analysis in order to provoke a healthy discussion and debate, on how to continue strengthening the pension system in our country in order to guarantee the adequacy, sustainability and solidarity of the system.
In its analysis the group notes how with the developments that have taken place in recent years in the economic situation and in the labour market, as well as in the pension system in our country, substantial improvements are being projected, both when compared to 2010 and 2015.
In fact, while the adequacy of the pension was calculated in 2010 to reach 46% by 2060, it is now projected to reach 55% by 2070, an improvement of 9 percentage points. Improvements are also projected in terms of sustainability, where while the deficit of the pension system in 2010 was estimated to reach 5.8% of Gross Domestic Product by 2060, it is now estimated that it will reach 3% of GDP by 2070. In other words, the deficit of the pension system in 2070 is projected to be almost half of what was predicted 10 years ago for 2060.
While this technical group is made up of government and other external experts, the group acts in a totally independent way from the government and the content of the report is purely created by the group.
Eventually the technical group will be evaluating the opinions and suggestions made by the constituted organizations and bodies, by civil society, pensioners’ associations and by the general public, in drawing up the final recommendations that the technical group will be submitting to the Government later this year.
The final recommendations that the technical group will be making will be ruling out raising the retirement age and ruling out raising the rate of the social security contribution, in line with the electoral mandate the present government has.
The public consultation process to be chaired by the Technical Group will be closed on 30 March. The Technical Group will be meeting with constituted organizations and bodies, civil society and pensioners’ associations in meetings to be held in full respect of the regulations and restrictions imposed against the Covid-19 spread.
In the meantime, one can access the report from the website of the Ministry for Solidarity and Social Justice, Family and Children’s Rights which is https://family.gov.mt. The report can be downloaded from this link:
Anyone wishing to send their opinion or suggestions can do so by 4.00pm on 30 March 2021 or by email at firstname.lastname@example.org or by post to:
Pensions Strategy Group
C / O Office of the Permanent Secretary
Ministry of Solidarity and Social Justice, the Family and the Rights of the Child