From what I am deducing there is no fund; hand-to-mouth is the order of the day.

[Daphne – Ding dong. It’s been that way for decades. I don’t think national insurance funds have ever been ring-fenced.]

Does your good self reside in Malta?

Sorry, I’m a bit late on this one, but if the above statement is correct, one has to assume that the N.I. contributions are included in the government’s general revenue? If that is true, then it’s another ‘only in Malta’ oddity.

Also, in theory, the N.I. contributor of today is contributing to his future pension since the premium of today is invested in a way to grow by, at least, the rate of inflation averaged for the number of his remaining working years . This is an actuarial calculation which decides the amount of the premium to be paid.

Adjustments to the premiums are necessary from time to time if unusually high inflation rates cause pensions to be increased thus depleting the pension fund faster than the projected rate as calculated using the anticipated inflation rate at the last adjustment.

If he doesn’t realise that he’s paying VAT, it does not follow that he’s not a taxpayer.

[Daphne – VAT? Even tourists and birds of passage and non-Maltese residents pay VAT in Malta. That’s doesn’t exactly qualify them as taxpayers with a right to decide on whether we get a parliament house or not.]

It’s a moot question whether he actually pays taxes or not. The point of this entry is that, according to Laiviera’s own reasoning, were he – or anybody else for that matter – to be exempt from taxation he would not only have no rights but taxpayers should be entitled to take decisions for him.

I suppose I don’t have to pay NI anymore, after all others are going to pay for me.

Daphne , I think your argument does not hold water. When one pays his NI one obtains a right for his pension when he reaches pensionable age. It is earned and it’s up to the social security department where to get the money from. At present we are paying through our noses for this thing: one tenth of our salary together with the same amount from our employer are poured in this fund.

Nestu Laiviera was an MLP candidate and was also Speaker of the house; his son Victor did nothing of the sort.

“Today’s taxpayer/NI contributor is paying for the pensions of today, not for his pension of tomorrow ” I really hate this hand to mouth system!

In my case, above, my aunt has contributed towards her pension in form of tax and in recent years NI (I don’t know what the situation was like, about 80 years ago, when she could have commenced her employment). As far as I know, now, when retiring and to get a ‘full’ pension you need to have paid tax/NI for 40 years. She has, therefore, not only contributed towards her pension but she has been sustaining others, from her pension, for another 40 years – when taking into consideration that she’s nearly a 100 years old, less a few months, As you mentioned, her pension comes from the tax fund to which she has contributed so far. Whether the ‘pension’ scheme will remain as is is another thing altogether.

He contributed to his pension so he’s not ‘funded’ by the taxpayer.

[Daphne – You’re joking, right?]

Here in tiny Malta we are all very aware of our public spending. As a citizen and a taxpayer he has every right to speak for or against anything which is paid out of our taxes, VAT, PAYE, and customsand excise duty. This land is his land from San Dimitri to Delimara even if he didn’t pay any taxes.

[Daphne – Oh John, you miss the point. I didn’t say that people who pay no taxes have no right to speak (they even have a vote). I said it doesn’t follow that, if something or somebody is funded by the taxpayer, that gives the taxpayer the automatic right to interfere in how it is done or what shape it takes. And that’s why I gave the example of Victor Laiviera: the fact that he currently lives off the taxpayer – today’s taxpayer, not his taxes paid 50 years ago – does not mean that today’s taxpayer has the right to decide what sort of shirts he wears.]