In view of the proposals of the Pension reforms Working Group, Alternattiva Demokratika Chairperson, Prof. Arnold Cassola, said: “While the thrust of the reforms proposed goes in the right direction, Alternattiva Demokratika feels that there are still two areas which are not being tackled sufficiently and which are already a source of discomfort and preoccupation for pensioners today.  If not tackled appropriately, the hardship will increase in the future.

The Working Group has proposed  a weekly rise of 20 Euros for future pensioners.  Whilst still not adequate enough, this is a step in the right direction. The Group however is ignoring the plight of the over 22000 pensioners who are already today on a less than 500 Euros a month pension, and are therefore already unable today to make ends meet till the end of each month.  One must keep in mind that today pensioners are one of the most vulnerable sectors of society and therefore most susceptible to falling beneath the poverty level.

In a statement, Alternattiva Demokratika said considers that those pensioners who are already today on a less than 500 Euro a month pension should qualify immediately, for a 20 Euro a week raise.

In order to make this raise sustainable, the 20 Euro raise could be financed through a rise in the income tax rate or social security for high income earners.

The second issue concerns the second pillar pension, which is ignored by the recommendations.  Alternattiva Demokratika believes that for those born after 1963, the second pillar pension should be introduced.

This would be financed through contributions by the employer, the employee and the government.

Unlike the present first pillar pension scheme, where contributions go into a common general fund, the second pillar contributions would be invested  in funds in the individual name of each person, to ensure a healthy income for the said individual at retirement.

The lack of implementation of a  second pillar pension scheme will lead to further poverty and erosion of pensions income in the future.

"It is irresponsible to continue to ignore the writing on the wall," concluded Prof. Cassola.