Disability pensions, widower pensions, inheritance tax and retirement pensions were among the issues raised at Castille yesterday at the fifth public dialogue meeting on the 2008 pre-

budget document that discussed how the pensions reform could be further improved.

In his introduction, Prime Minister Lawrence Gonzi said that these public discussions were not a waste of time as the government took into consideration what was said.

The pensions reform would work towards obtaining sustainable and adequate pensions for everyone, he said.

“Those who will retire in the next 15 to 20 years will have a pension that is adequate for an acceptable quality of life and a system that can be sustained by the country,” said Dr Gonzi.

Economist Lino Briguglio, who started off the discussion, said that the pensions reform that had been introduced last November was needed simply because the previous system had become unsustainable.

He pointed out that Malta had an ageing population and that while in 2000 there was one pensioner for every four workers, in 2025 there would be one pensioner for every two workers.

“However, even though the pensions reform was very positive – more still needs to be done,” Prof. Briguglio said.

“Receiving a pension does not mean that the elderly are useless, as they can remain active through lifelong learning,” he said.

The president of the Chamber for Small and Medium Enterprises (GRTU), Paul Abela, suggested that the Family and Social Solidarity Ministry should liaise closely with the Malta Council for Economic and Social Development (MCESD).

“The MCESD has representatives from most unions and employers and can work closely with the strategic unit within the ministry to focus on issues and problems with the pensions reform,” said Mr Abela. He also suggested the setting up of a government pension fund that would be administered by financial experts.

Mr Abela referred to a recent agreement between the EU and Switzerland, under which interest amounting to around EUR0.5 million in interest from bank accounts held by Maltese citizens will be passed to the Maltese government, and suggested that this should be included in the pension fund.

One pensioner said the government should allocate a sum of money that would be used by NGOs and organisations to employ a pensioner. “These organisations should be given tax incentives when they employ pensioners,” he said.

Furthermore, he added, a register of active pensioners who are ready to work should be drawn up.

The idea of creating such a register appealed to many members of the

public present.

Another woman reminded Dr Gonzi of a suggestion she had made last year that couples who have children be given a sum of money, which would lead to an improvement in the birth rate.

“You promised that you would consider it and I’m wondering if you still are,” she said.

Dr Gonzi jokingly replied that the idea was still bouncing around in the corridors of Castille.

Another pensioner said he had two constitutional cases pending that had simply been put off because the opposing party was not interested in resolving the issue.

“I was told, very clearly, that they are not interested because they are waiting for me to die,” he said angrily.

“Just as people who are aged over 75 have a card that enables them to jump queues, especially where elections are concerned, I believe that there should be a fast lane for the elderly in court,” he said.

A widow told Dr Gonzi that the current system of eligibility for a widow’s pension was unfair.

“If widows have children over 16 years of age who receive a wage that is more than the minimum wage, they don’t receive the widow’s pension,” she said.

Another woman told the prime minister that, after having received a retirement pension for two years, she had received a letter from Social Services informing her that she had to refund them over Lm3,400 due to a human error.

Several other people said they had been through the same experience and were still paying off the refund.

One woman complained that the succession tax was unfair – especially when one of the spouses died and the other spouse had to pay inheritance tax.

“It is not as though the other spouse is buying the property from the other when they pass away – after all it belongs to both of them,” she said.

Dr Gonzi explained that the government had originally removed the inheritance tax but had then reintroduced it.

“However, I understand that it is not fair, as when a spouse passes away, the other spouse is not buying the property. This is a point that should be looked at closely, especially bearing in mind the current price of property,” he said.

A mother expressed concern that the disability pension of about Lm140 a month was not enough for people with a disability to become financially independent.

And a man asked if it was true that members of parliament had certain privileges, especially where pensions were concerned.

Dr Gonzi pointed out that the aim of the pensions reform was to include everyone in the same system.

“However, the MPs’ employer can kick them out after five years, so I’m not sure if you want to follow their system,” he replied jokingly.

At the end of the meeting, Dr Gonzi thanked everyone who had contributed to the discussion and put forward suggestions.

“I want to urge those who did not have the chance to speak, or who held back from speaking, to put down their suggestions in writing and send them to us,” he said.

Many of the suggestions put forward are ideas that have already been discussed or are in the government’s mind, he added.

“These queries show clearly where the needs of the public are – people are concerned about receiving a good pension. However, solidarity is important, as I believe that pensions should help those who are in dire need first. Unfortunately it is impossible to please everyone,” said Dr Gonzi.