Following three petitions presented in 2009 and a parliamentary quesion by MEP Louis Grech on 9 December 2011 the European Commission has requested Malta to stop reducing Maltese old-age pensions by the amount of civil servant pensions received from other Member States. This involves mostly pensioners who used to work for British services have been having their pension cut by the Maltese government.
Maltese legislation provides that Maltese statutory old-age pensions are partly decreased by the sum of service pensions paid for past services in Malta or abroad. Such a practice breaches social security coordination rules of the European Union as all pensions based on national legislation, such as civil service pensions, fall under the protection of the EU rules on social security coordination. This prohibits the application of national rules on suspension and reduction of benefits to a pension calculated under social security coordination rules.
The request takes the form of a 'reasoned opinion' under EU infringement procedures. Malta now has two months to inform the Commission of measures it has taken to bring its legislation into line with EU law. Otherwise, the Commission may decide to refer Malta to the EU's Court of Justice.
On 9 December 2011 MEP Louis Grech asked these questions the the EU Commission:
Does the Commission consider the ceiling imposed by the Social Security Act to be fair to those who have earned their
Is the calculation method employed by the Maltese national authorities in conformity with the rules laid down in Regulation (EEC) No 1408/71?
Despite the fact that social security issues broadly fall within the national remit, will the Commission take any action, be it advisory or regulatory, in response to this situation?