AN agrees many pensioners risk falling below poverty line

Azzjoni Nazzjonali agrees with a proposal by the Alliance of Pensioners Association to ensure that the lowest pension, be it contributory or the old age pension, would not be less than 60 per cent of the average national wage.

The issue was discussed during a meeting yesterday between AN leader Josie Muscat and Anġlu Xuereb, deputy leader, and a delegation from the Alliance led by its president Albert Tabone.

The two sides agreed that if remedial measures were not taken many pensioners risked falling below the poverty line.

The Alliance believes that the proposed measure should be applied to all pensioners by not later than January 2009. Dr Muscat said that AN believes that in the case of retirement pensions only the highest pension rate should apply. However, before detailed costings are carried out, AN could not commit itself to say when the arrangement should come into force.

He proposed that, as from January 1, 2014, in the case of the pension of those born on December 31, 1951 or before, the income taken into account to work out their pension would be increased by three quarters of the amount applicable for those born on January 1, 1962 and after. Those born between January 1, 1952 and December 12, 1961 would have pensions increased on the basis of pensionable income at the rate of seven/eighths of the amount applicable for those born on January 1, 1962 and after.

The Alliance of Pensioners Association is insisting on a change in the present pension arrangements. It is proposing that, as from January 1, 2009, the highest pensionable income would increase to €17,200 and that in January of each year between 2010 and 2013 the pensionable income would increase with the same rate of inflation or by €500 annually, whichever is the higher.

Dr Muscat said AN first had to see what such measures would entail financially and so could not commit itself to insist that the highest pensionable income between 2010 and 2013 would increase at a higher rate than the inflation rate. In his work as a doctor in the south of Malta, Dr Muscat said he came across people earning the minimum wage who were finding it extremely difficult to cope with the cost of living. Imagine how pensioners were faring, he added.

Mr Xuereb said it is calculated that a mere sum of Lm500,000 would improve the situation of about 2,300 pensioners who are below the European poverty line. The PN was using half that sum to install billboards in practically every corner of Malta and Gozo, he added.