The vital role of sustainable, sufficient and adequate pensions
“The Malta Chamber is a firm believer in the positive impact that sustainable and adequate pensions can have in addressing the issues related to enhancing sound and proper governance protocols for both a short term and a long term recovery,” said Dr Marthese Portelli, The Malta Chamber CEO, during a luncheon organised by STM Malta.
The event aimed at providing: • a holistic overview of the pension system • the importance of providing for a pension • the key differences between a state and a private pension • the benefits of employers offering an occupational pension scheme to its employees, and • how one can better manage investment risk.
Addressing attendees, the Malta Chamber CEO noted the proactive efforts The Chamber is taking in championing sustainability with regards to pensions. Several recommendations were outlined which featured in the recently published pre-budget recommendations. These included allowing older employees entitled for a full pension at 61, to return to, or stay within employment, whilst also receiving a full pension and emphasising on the important role that supplementary pensions play in maintaining the future adequacy of pensions.
“Earlier this month we signed a Strategic Alliance Collaboration with STM Malta with the aim of raising awareness and tackling the issues related to the sustainability of the state pension while promoting Malta beyond our borders as a leading base for international cross-border pension provision,” explained Dr Portelli.
Deborah Schembri Managing Director & CEO of STM Malta Pension Services Limited stated that the key purpose of pension systems is to protect older people from poverty and to allow them to enjoy decent living standards and economic independence when ageing. Financial sustainability of pension schemes is the indispensable means to this end. She explained how “Supplementary pensions (other than state pensions) will need to play an ever greater role in maintaining the future adequacy of pensions, in particular where the adequacy of public pensions is expected to deteriorate. Education, tax and other financial incentives are an important part of the policy mix to develop occupational pensions.”
The event was attended by Minister Clyde Caruana, Minister Michael Farrugia and Hon David Agius.
