Hon. Minister Dr Michael Falzon LLD, MP
Ministry for the Family, Children's Rights and Social Solidarity
310, Palazzo Ferreria
Republic Street
Valletta
Ministry for the Family, Children's Rights and Social Solidarity
310, Palazzo Ferreria
Republic Street
Valletta
Copied to:
Permanent Secretary – Mr Mark Musu'
28th January 2019
Re: Former British service pensions
Dear Minister,
Some 6,000 Maltese pensioners, who were public employees in Malta before 1979,
have since been defrauded of their pension rights due to a 1979 law providing that Maltese
statutory old-age pensions are partly reduced by the sum of service pensions paid for past
services in Malta or abroad. This should be changed.
have since been defrauded of their pension rights due to a 1979 law providing that Maltese
statutory old-age pensions are partly reduced by the sum of service pensions paid for past
services in Malta or abroad. This should be changed.
Instead of receiving a service pension from the Treasury and a Social Security pension,
as they were entitled by contract, the social security pension of these former servicemen
was severely cut (down to around one third), despite them having paid all their all their
National Insurance contributions for over 40 years and also contributed to the Widows
and Orphans Fund. Moreover, these pensioners have never received increases to their
Treasury service pension.
as they were entitled by contract, the social security pension of these former servicemen
was severely cut (down to around one third), despite them having paid all their all their
National Insurance contributions for over 40 years and also contributed to the Widows
and Orphans Fund. Moreover, these pensioners have never received increases to their
Treasury service pension.
Following the petition brought by Joseph Caruana to the European Parliament in 2006,
this grossly unfair discrimination had been highlighted by the European Commission as
in breach of EU social security coordination rules, which cover all pensions based on
national legislation and prohibit the suspension and reduction of benefits. EU social
security coordination rules (Regulation EC No 883/2004 and formerly Regulation (EEC)
No 1408/71) give EU citizens the same rights and obligations as nationals of the country
where they are covered.
The Commission warned the Maltese government already in 2009 to stop reducing
Maltese old-age pensions by the amount of civil servant pensions received from other
member states. In 2013, it decided to haul Malta before the European Court of Justice,
which the following year in its decision C.12/14 dismissed the case based on technicalities,
leaving the issue in a stalemate.
Maltese old-age pensions by the amount of civil servant pensions received from other
member states. In 2013, it decided to haul Malta before the European Court of Justice,
which the following year in its decision C.12/14 dismissed the case based on technicalities,
leaving the issue in a stalemate.
The discrimination against pensioners receiving British service pensions continues.
It is time for the government of Malta to put an end to this. With the current raise of
cost of living in Malta, providing all pensioners with an adequate and fair pension after
decades of work and social contributions is the bare minimum.
It is time for the government of Malta to put an end to this. With the current raise of
cost of living in Malta, providing all pensioners with an adequate and fair pension after
decades of work and social contributions is the bare minimum.
First of all, the Maltese government should request from the British government to explicitly
declare that British pension schemes fall under the scope of the EU Regulations on social
security coordination.
declare that British pension schemes fall under the scope of the EU Regulations on social
security coordination.
Second, the Maltese government should apply such EU Regulations to British service
pensions, disapplying the 1979 law, and stop the reduction of pension benefits.
pensions, disapplying the 1979 law, and stop the reduction of pension benefits.
Third, the Maltese government should make use of its budget surplus available to provide
compensations to pensioners whose pensions had been unfairly deducted, at least since the
accession of Malta to the European Union in 2004.
compensations to pensioners whose pensions had been unfairly deducted, at least since the
accession of Malta to the European Union in 2004.
Fourth, the Maltese government should ensure that Treasury service pensioners are also
given a fair treatment, so as to restore overall equity among all pensioners in Malta.
Respectfully yours,
Dr Michael Briguglio
