Copyright timesofmalta
The budget is now over and the propaganda bombardment by the government, worth thousands of euros, has started. The general impression is that it was quite a positive budget. Indeed, I would say that, all in all, the positives are noteworthy. As my colleague in Momentum, Mark Camilleri Gambin, has pointed out: “Incentives for larger families are quite tangible and, while such financial aid is most welcome, more consideration needs to be given to family well-being, which is often strained by the necessity for both parents to work and rush between commitments; the 24-hour opening of the Gżira and Qormi health centres was desperately needed; widespread AI training is something without which the country cannot move ahead.” A number of fiscal measures aimed at increasing Malta’s waning population can certainly be considered family-friendly and positive. What I find less convincing is the reasoning behind these measures. Perhaps unintentionally, the underlying message suggests that single women and single men without children are viewed as less important than those who have children. But the scope of this article is to tackle another issue: the false impression given about pensions. Let me begin by commending the government for adopting a proposal that Momentum and I have been advocating for the past five years: ensuring that social security contributions made by 16- and 17-year-olds count toward their pension entitlement. Until now, for reasons that were never entirely clear, these contributions had to be paid for two years but were excluded from the final pension calculation. Until now, 16-year-olds could contest elections, become mayors, officiate at marriages and sign bylaws – but the social contributions they made between ages 16 and 18 did not count toward their pension, effectively wasting those two years. This has finally been corrected, meaning that someone who began paying contributions at 16 could, if they wish, now retire as early as 56. However, the big headline on pensions is: €10 rise for all pensioners. This is a blatant twisting of the truth and it is also about time that journalists question such a statement, which is only meant to dupe people. It is not true that pensioners got a €10 increase. The truth is that all the working population, including pensioners, got €4.66 a week to compensate for last year’s cost-of-living rise. The marketed figure of €10 for pensioners includes the €4.66 given to the whole population. So, the real extra rise for pensioners is €5.34 a week. Is it so difficult for honest politicians to just say things as they are, rather than try and dupe people with a round figure, like €10? We then have the issue of the pre-1962 pensioners. First scandal: mothers born after 1962 get four years social security payments from the state for every child, up to three children. Therefore, a maximum of 12 years payment. But mothers born between 1952 and 1961 only get two years social security payments for every child, up to three children. Ergo a maximum of six years. Why? Are their children worth less? Arnold Cassola is chairperson of Momentum.
