Occupational social security schemes (Chapter 2 of Directive 2006/54)

• Author: Romina Bartolo
• Pages: 38-40

38

6Occupational social security schemes (Chapter 2 of Directive 2006/54)

6.1General (legal) context

6.1.1Surveys and reports on the practical difficulties linked to occupational and/or

statutory social security issues

On 9 August 2016, the Malta Chamber of Commerce published an article on women and

pensions. The author is a national expert in the field. The article highlights the differences

between the work patterns of women and of men, their life expectancy and the fact that

these differences are not incorporated directly into the pension system design.44 The article

highlighted the challenges that women face, including the fact that they work fewer hours

because of their family, stay in jobs for shorter periods and are more likely to work part

time or on reduced hours. Moreover, the life expectancy for women in Malta is 84 years,

which is 5 years longer than men and this means that a woman is more likely to outlive

her savings and, hence, is at a higher risk of living below the poverty line. The author

describes the counter-measures taken in the form of contributory credits and the

introduction of a concept where the pension of the male spouse ‘moves in full to the female

spouse in the event that a woman qualifies for a pension in her own right’. The article also

explores the complications that arise with regard to pensions when a marriage is dissolved.

6.1.2Other issues related to gender equality and social security

There are no other issues to report at present.

6.1.3Political and societal debate and pending legislative proposals

None to report.

6.2Direct and indirect discrimination

Direct and indirect discrimination on the ground of sex in occupational social security

schemes is prohibited by means of Regulations 3 and 4 of the Equal Treatment in

Occupational Social Security Regulations with regard to the scope of the schemes and

conditions for accessing them, the obligation to contribute to the schemes and the way

that the contributions are calculated, the way the benefits are calculated and the conditions

governing them.

Any provisions such as those determining who may participate in an occupational scheme,

fixing the compulsory or optional nature of participation in an occupational scheme,

different rules regarding age of entry into a scheme or minimum period of employment or

membership of a scheme in order to obtain benefits, different conditions for granting or

restricting benefits that is contrary to equal treatment, fixing different retirement ages,

suspending the retention or acquisition of rights during periods of maternity leave or leave

for family reasons and setting different levels of benefits except as may be necessary to

take account of actuarial calculation factors will be considered null and void.

However, for funded defined-benefit schemes — which the Retirement Pensions Act,

(Chapter 514 of the Laws of Malta) defines as‘a retirement scheme, other than a defined

contribution retirement scheme, which has as its primary purpose that of providing for the

payment of fixed or determinable retirement benefits’, —‘certain elements including:

(i) the conversion into a capital sum of part of a periodic pension;

(ii) the transfer of pension rights;

44 Spiteri Gingell, D. (2016), ‘Women and Pensions’, MaltaChamber, 9 August 2016.

https://www.maltachamber.org.mt/en/blogs/32.