Addressing a press conference, Dr Sant said the report also included guidelines stipulated by the Maltese government. These include the lowering of the contribution rate from 10 per cent to eight per cent, and from 15 per cent to 12 per cent for the self-employed.

They also propose a gradual increase in the retirement age from 61 to 65 for both sexes to be fully phased in by 2015. The government guidelines also refer to the gradual increase in the minimum years of contribution required for a two-thirds pension. This will be increased by five years, from 30 to 35 years. This is also to be phased in by 2015.

The government’s guidelines also propose the gradual change in how the pension is calculated. At present, the figure is taken on the best three years of the last 10 working years. It is proposed that the amount will be calculated on all the last 10 years.

This effectively reduces the pension because the average over 10 years is lower than the average over the best three years. This change will also be fully phased in by 2015.

The World Bank report, compiled by Anita Schwarz, Alberto Musalem and Tatyana Bogomolova, proposes a further rise in the retirement age beyond 65 years and proposes the 68 mark by 2072 for both men and women.

It also proposes that the target pension for a full career is two-thirds of the net wage rather than two-thirds of the gross wage. The report further proposes that with a retirement age of 61, workers are retiring on average with 38 years of service. Therefore, it proposes that the full career is defined as a period of 45 years in service.

Dr Sant said it was evident that the government was planning to increase burdens while reducing the pension. He said the proposals would mean that whereas a pensioner currently received 52 per cent of an average wage, the pensioner would receive only 33 per cent of this average wage. He also complained that the proposals would mean that from the present 10 per cent contribution, the pensioner would have to contribute 13 per cent of an average wage.

Dr Sant said the proposed measures were “confused” and based on the assumption that by increasing the retirement age, the problem of the sustainability of the pension system was going to improve.

He said that the government should concentrate its effort on more important issues before attempting to solve a problem which is not as pressing. Among other more important issues, Dr Sant mentioned the country’s financial deficit, its competitiveness and the lack of investment. “These are the crucial challenges lying ahead and the review of the pension system can be made at a later stage,” he said.

Dr Sant said it did not make sense that the report was not made public simply because of the forthcoming European Parliament election.