Permanent secretaries, cabinet secretary given special pension by stealth

Tista taqra dan l-artiklu bil-Malti.

Permanent secretaries in the public service and the cabinet secretary have been awarded a special second pension by stealth through a hurried amendment in the Public Administration Act, kept under the radar by parliament since 2019.

The amendment, approved by both Labour Party and Nationalist Party MPs four years ago, was not publicised and did not make it to the media until now. It provides an additional ‘privileged service pension’, which comes in addition to their regular state pension.

It is awarded to permanent or cabinet secretaries who have served at least one term, most of whom were put in their positions by ministers or the prime minister.

They now join parliament and judiciary members in receiving a second, uncapped pension aside from the one earned through national insurance contributions.

This change in the Pensions Ordnance creates another category of pensioners granted privileges over ordinary citizens, even if they served just one term.

Independent MEP candidate Arnold Cassola sounded the alarm over the situation in a social media post, highlighting that the ‘secret’ amendment privileges those in political positions.

Research carried out by The Shift shows that the legal amendment was inserted into a parliamentary act and many other minor amendments to the Public Administration Act. This meant that the amendment to the Pensions Ordinance passed relatively unnoticed, a likely deliberate move.

During the parliamentary committee stage, held in January 2019, then-principal permanent secretary Mario Cutajar attended the MPs committee meeting to ensure that the amendment was inserted into the law as proposed.

Cutajar was then among the first to benefit from the privileged pension when he retired from his post a year later, in 2020.

Other beneficiaries of this privileged pension include many permanent secretaries who served under the PN administration until 2013 and were replaced as soon as Labour took over.

The Shift is informed that these ‘privileged’ former permanent secretaries exerted pressure on the PN to vote in favour of the legal changes presented by the government.

What is a privileged service pension?

Under Maltese law, all those retiring from work who have paid their national insurance contributions are entitled to a contributory pension when they reach 65.

Although this should amount to two-thirds of their regular pay upon retirement, the pension eligibility amount is capped and cannot exceed a certain threshold. Usually, this amounts to a maximum of €1,300 a month.

In 1975, then Labour Party prime minister Dom Mintoff introduced a unique service pension exclusively for members of parliament. Through this controversial law, MPs serving for two terms had become eligible for a second pension on top of their normal contributory one.

This second special pension was uncapped, with beneficiaries entitled to the full two-thirds of an MP honoraria, and increased each time MPs got an increase. This was also extended to members of the cabinet and the President of Malta, who had a second privileged pension, uncapped on the current salary of the last political office they occupied.

A few years ago, to incentivise the best legal brains to become judiciary members, a similar privileged service pension was given to judges and magistrates, with an increase in their retirement age to 68 years.

Now, through a ‘low-profile’ legal amendment, all those occupying the posts of principal permanent secretary, permanent secretary or cabinet secretary have also joined the top-tier service pension eligibility.

                           

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29 Comments
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wenzu
wenzu
1 year ago

THIS is the kind of scum that looks after itself and screws the rest of us.

Albert Mamo
Albert Mamo
1 year ago

THIS IS A CORRUPT, MONEY HUNGRY LABOUR GOVERNMENT. IF THEY DON’T ROB IT. THEY LEGALISE THE ROBBERY!!!💯👎👹

Mick
Mick
1 year ago

Just another day in Mafialand. Greed knows no bounds amongst these “chosen” few who are without doubt the biggest robbers of the National budget. Would you really vote for a Nationalist or Labour representative? The Crooks in Suits party comes to mind

M.Galea
M.Galea
1 year ago

Ghalhekk dawn z zeros jilghaqu lil gvern!!

Wish
Wish
11 months ago
Reply to  M.Galea

Ta min hu l itwal ilsien fosthom, jikkompetu qeghdin!

Robert Agius
Robert Agius
1 year ago

Din bhai tal-500 mitt Ewro ta Gonzi……kullhadd jahxi ghas-skapitu tat-taxpayers. Hallelin.

Michael Borg
11 months ago
Reply to  Robert Agius

Qabel ma twaddab il-tajn, infoma ruhek sew!
Dawk il-€500 kienu qablu li johduha il-koll, inkluz Joe Muscat u ic-corma tieghu. Fil-fatt hadd ma hada ghax il-proposta tnehhiet.

Robert AGIUS
Robert AGIUS
1 year ago

The corruption enablers reward themselves to keep their mouth’s shut….

Anne R. key
Anne R. key
1 year ago

It is of no wonder, that this scum of a government doesn’t give two hoots about the pittance of a pension that we receive – as they themselves are well and truly covered🤮 Hmieg bla tmiem!

Carmelo borg
1 year ago

Il PN U IL LABOUR QEDGHIN F KONGURA WAHDA.
PROSET CASSOLA
CAPCAP GAHAN
MUR IL MEETINGS U PROTESTI HALLI IGAWDUMIN FUQ DAREK

Anglu Agius
Anglu Agius
11 months ago
Reply to  Carmelo borg

Ghalhekk jien nghid li Il Maltin huma 99.9% Gahan u mhux min ivvota labour biss. PNPL kongura wahda. Ivvota numru 1 lil partiti zghar u lill-indipendenti biex naqtaw ras iz-zewg monstri li qed jigvernaw lil pajjiz.

Mark
Mark
1 year ago

Unless i misread the article (apologies if I did) the introduction of this additional pension was approved by both PL and PN and it benefitted both sides. Therefore both sides colluded between themselves so that both will benefit.

Bil malti pur jitnejku minna – both of them. The more time passes the more I am convinced not to vote.

Elizabeth Ellul
Elizabeth Ellul
11 months ago
Reply to  Mark

Not voting is certainly not the right move and totally counterproductive. You can vote for a smaller party or, better still, for Arnold Cassola, who deserves it. Wasting your vote only helps keep these crooks in power.

Anglu Agius
Anglu Agius
11 months ago
Reply to  Mark

vote independent and small parties

Joe
Joe
11 months ago
Reply to  Mark

Not, not to vote but vote Prf Cassola and the other small parties, & people make sure the election is not rigged.

Paul Bonello
Paul Bonello
11 months ago

Some are more equal than others

Godfrey Leone Ganado
Godfrey Leone Ganado
11 months ago

I was denied my contributory pension until the age of 67 because from 2001 to 2007 I was receiving an annual payment from the practice, of which I had been a partner, as a ‘deferred payment’ for past services. This was classified by the Inland Revenue as a service pension, and thanks to Mintoff I lost 6 years of NI pension amounting to thousands, besides continuing to pay National Insurance.
I was born pre-1962 which also makes me an unpriviledged beneficiary of the pension which is now being gradually corrected. Still this is another injustice as Profs Cassola already stated.
So, thank you Profs Cassola for your continuous pressure for the correction of this injustice.
As regards the GWU militant Labour Mario Cutajar, as I have already said many times, this Master political prostitute has to be investigated by the FIAU/Director of Revenue to establish whether he always declared his earnings and also by the Standards Commissioner for his alleged failure in missing keeping Cabinet minutes as well as possible jobs/promotions for votes in the public sector and government agencies.

Wish
Wish
11 months ago

Spot on!

Godfrey Leone Ganado
Godfrey Leone Ganado
11 months ago

The above photo should be hanged on the Labour brothel side of Parliament. Why should we not have a museum of political prostitutes over the last 10 years?

D M Briffa
D M Briffa
11 months ago

The food bill for the piggeries gets bigger and bigger.

Carmelina
Carmelina
11 months ago

everyday we get news ( thank god for A.Cassola, people like him & news portal namely the shift)of how we are being robbed blatantly. Shameful episodes although no one is ashamed to take help himself / herself of the Maltese coffers

Michael Borg
11 months ago

Tajjeb! Jien hdimt 50 sena biex qed niehu il-pensjoni tat 2/3 (IKKAPPJATA) u il-Parjamentari, dawn u ohrajn ippapuwa, wara 5 snin.
Din diskriminazzjoni frenata u ingusta ghall l-ahhar, specjalment li m’ghandhomx Kapping! Jien x’ghamilt biex nigi iddiskriminat? Ix-xoghol tieghie dejjem tajtu….u iktar!
Ikkrejaw zweg kategorijji ta cittadini! Allat u taz-zibel

Gerald
Gerald
11 months ago

Ara hawnx xi hadd minn dawn is- sinjuri (fil- very sens tal- kelma) jghid li qed nghixu f’ socjeta gusta?!?!

Hopeless
Hopeless
11 months ago

Both parties are complicit: when it comes to cramming one’s pockets, principles, values, slogans, beliefs are placed in that famous ‘waist’ bin. Us, poor sods, bear the burden, smile and vote.

Joseph
Joseph
11 months ago

Let the socialists within the labour party know, although i suspect they are in on it!

Wish
Wish
11 months ago

Dawn mhux kollha positions of trust, suppost barra mal bidla fil gvern mhux pendjoni minn fuq darna, dawn huma l enablers tal korruzzjoni li saret matul iz zmienijiet, suppost kollha f xi cella mispiccaw!

Charles P
Charles P
11 months ago

This news item came a few hours after we were told that public servants would not be entitled to COLA increase in their salary. These lurid individuals are thieves. No more, no less.

https://timesofmalta.com/articles/view/unions-demand-urgent-meeting-pm-missing-cola-mechanism.1065309

Ċapċpilhom, ĠAĦAN!

Martin
Martin
11 months ago

kulħadd jitħanżer ,Rosianne Cutajar was right.

Ray Farrugia
Ray Farrugia
11 months ago

Vote only the new candidates and stay off all those who have already made it to parliament. That will send a strong signal: abuse our trust and next election you are out.

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