|Some will end up poor|
The Communist Party of Malta appeals to the pension working group to strengthen the pay-as-you-go-system, so that it guarantees a decent living after years of work. The neoliberal concept to weaken the first pillar so as to make the second pillar palatable and convince people that a private pension is essential to their future should be dumped by the working group.
"Various organisations, such as the unions, the employers and the pension organisations are all infavour of a strategy to reinforce the first pillar pension", said the Party.
"The second pillar as envisaged meant, the workers and employers would have to pay a new contribution over and above what they pay under the PAYE system to the benefit of private insurance companies", stated the Party.
“Other concerns which we feel the working group should address are the issue of precarious employment and low wage vis-a-vis pension sustainability and adequacy. In real terms, a large number of our workforce, mostly the young, women and people socially deprived will reach the pensionable age with less than 40 years contribution. This will result in poverty amongst future pensioners”, stated the Communist Party.