Proposals for second pillar schemes are rather unlikely to work in Malta considering our small size and demographic layout, National Association of Pensioners chairperson Albert J. Tabone said yesterday.

Speaking at a press conference announcing the association’s reactions to the proposed pension reform, Mr Tabone said that the association was not against reform but wanted to guarantee that pensioners retain an adequate standard of living and not just simply exist.

Mr Tabone said that the large bulk of business in Malta was made up of small and medium sized enterprises and these were faced with constantly rising costs so the possibility of added pension schemes for their employees was rather far-fetched.

Commenting on the reforms proposed by the government, Mr Tabone said that there should be some simplification of proceedings and it must be kept in mind that the establishment of adequacy must be the basis for any reform.

He said that pensioners are important contributors to society and the premise that they are expendable should be discarded.

Pensioners have a right for a decent income after retiring as they had given their all through all their working life and this must be recognised, the NAP Chairperson added.

Mr Tabone said that the association had come out with various proposals to aid the reform process and these included the following:

The highest pensionable income should also include an increase tied to the inflation rate and should not just be two thirds of the final gross income;

A full pension should be given to those persons who will have paid 2080 contributions with this pension coming into effect only when the retiree is 61 years old;

Current and future pensioners should not be worse off after the reforms are implemented;

The 60 per cent calculation should be drawn out from an average of wages;

The state, the employer and the employee should contribute one per cent extra in social security contributions which should be placed into a fund to be used for future pension payments.

Answering questions from journalists, Mr Tabone said that the pensions problem would be at its worst in the years 2025-2050 after which it was expected to tail off, according to the current demographic trends.