Ivan Camilleri, Brussels
MEPs' pensions guaranteed despite massive fund deficit
MEPs subscribed to a "privileged" EP pension scheme will still be guaranteed their full pension after retirement even though its fund is running into a €120 million deficit following the recent crash of the financial markets.
The decision was taken by the EP's bureau a few days ago, saying the Parliament would assume its "legal responsibilities to guarantee the rights of members of this scheme".
The controversial voluntary pension scheme, which has been in operation since 1989, comes on top of pensions that MEPs receive from their national governments as "common" citizens.
MEPs who opt to join the scheme pay €1,194 a month into a fund and the Parliament pays €2,388 a month out of its own resources. On reaching retirement age, MEPs who have served a five-year term are entitled to receive a pension of €1,393 per month. The figure doubles if an MEP has served for 10 years and triples for a 15-year term.
Four out of the five current Maltese sitting MEPs are members of this scheme. Nationalist MEP David Casa is the only one who has chosen not to subscribe as he said that he was already covered by a private insurance scheme.
However, following a new statute for MEPs to come into force after June's EP elections, newly-elected members will no longer be able to join the scheme.
In order to address the deficit, which leapt from €30 million to €120 million due to the financial crisis, the EP's bureau has decided to raise the age at which current MEPs can start to benefit from the scheme, from 60 to 63 years. Furthermore, MEPs will no longer be able to take early retirement at 50 to become eligible for 25 per cent of their pension entitlement as a lump sum.
As with all the other hefty payments and allowances given to MEPs, the management of this scheme has repeatedly been criticised by the European Court of Auditors (ECA), which questioned its legality.
In its latest annual report the ECA said that the Parliament should have clear rules to define the liabilities and responsibilities of the EP and members of the scheme in the case of a deficit.
7 Comments
Post comment
Please sign in or create your Account to post comments.
d.magro
Apr 17th 2009, 20:30
Imma kif dejjem li MEP Nazzjonalista issemmi Ivan. Even yesterday, on the issue of the Immigrants you mentioned the other one. Is it that hard that at least of the PL MP`s are contributing to our cause. Kunn parzjali u mhux kif tirrapporta l-ahbarijiet, suppost issa m`ghadikx man-Nazzjon!
lgalea
Apr 17th 2009, 19:21
No wonder everyone wants to get on the EU gravy rain, and a rich one at that.
Louis Gialanze
Apr 17th 2009, 17:26
All aboard the gravy train!
Nigel Lawrence
Apr 17th 2009, 16:51
There are shots on "Euronews" extolling EU citizens to vote in the next elections, because it's the people that count (sic). The shots DON"T mention that these irrelevant MEP's are getting a pay rise RIGHT after the election. DON"T mention this unsustainable pension pot. On top of that the EU dictatorship throw tons of cash away toddling between TWO parliament buildings.
Of course the people count, they have to pay for this obscene and extravagant gravy train. Oink!
John Spiteri, Information Secretary AN
Apr 17th 2009, 14:45
Its time for the citizens to send a message that they do not want to see more snouts feeding off the public trough. in a time were thousands of europeans are losing their jobs, their homes - pretty much their lives. MEPS, Commissioners, eurocrats and the unproductive sector in general get to live like kings at our cost. never has this class been more contemptuous of their citizens since Marie Antoinette said let them eat cake. enough is enough!!
DVella
Apr 17th 2009, 13:24
Hmph . . . NICE . . . whilst the rest of us 'children of a lesser god' have to pinch and scrap and economise and put up with curtailed pensions and cutbacks or the prospect of no pension at all . . . really NEAT!!
Stephen Forster
Apr 17th 2009, 12:03
mmmm....... Now that's what I call a RICH Gravy train.