The Malta Independent 31 August 2026, Monday
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Pension reform: Proposal for over 65s to work beyond and receive higher grant when they retire

Monday, 15 June 2015, 19:51 Last update: about 12 years ago

The government is planning on implementing reform in the pension system, allowing those aged 65 to continue working and receive an increased pension at a later stage.

Addressing a Gvern li Jisma activity, Minister for Family and Social Solidarity Michael Farrugia tonight said that people aged 65 and over will now have two options - either keep their state pension or choose not to accept the pension and continue working, to receive an higher pension at a later stage.

The government is expected to meet with MCESD in two days time to discuss the reform, which has already been discussed with members of the opposition.

Dr Farrugia said that there should be a distinction between retirement and pension age, noting that a number of people aged above 60 are still active and contributing to society.

Protection of minors

Dr Farrugia also announced that by the end of this year, the government will be setting up a service specifically for minors who have a drug addiction, after insistence by former Caritas director Mgr Victor Grech.

He added that the ministry will be doing its utmost to assist vulnerable minors who have been taken away from their families and amendments for legislation on the protection of children act are currently being drafted.

Dr Farrugia said that the government will also be discussing the idea of permanent fostering - ensuring long-term shelter for vulnerable children and teenagers.

In the next few weeks, the government is expected to sign a memorandum of understanding with Cambodia, to allow Maltese families to adopt Cambodian children, and is discussing similar texts with Bulgaria and Brazil.

Government plans

Asked about the compensation promised to former dockyard employees and other civil servants who were let off, Dr Farrugia promised that authorities will be calculating and distributing the compensation they deserve in due time.

Parliamentary Secretary Justyne Caruana said that the government is in talks with the police force to ensure that elderly persons are comfortable reporting abuse. She stressed that authorities are there to assist not to replace the role of relatives, who have the responsibility to support their parents or grandparents.

Achievements so far

Dr Farrugia said that his ministry has already implemented 70% of policies and incentives promised in the electoral manifesto.

"Poverty is not a perception - a quarter of the population is in the risk of poverty," he said. In the past two years, the government has implemented a number of incentives encouraging people to enter the workplace, and to reduce their dependency on social benefits. Family friendly measures, such as Klabb 3-16, free childcare centres and breakfast centres have allowed more parents, particularly mothers, to continue working,” he said.

Mrs Caruana said that persons with disability have been given the importance they deserve and a number of reforms have already left a huge positive impact. The quota implemented for the employment of persons with disability has resulted in 20% less registering for work.  She also said residential housing for persons with disability in four localities will be completed shortly. 

The parliamentary secretary said that the quality of service provided for the elderly has improved, and a number of services within the community have been introduced.

 

Six LEAP centres have been launched in different communities and over 200 persons have undergone training courses to enter the workforce, she said.

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