The devil is in the details
or how public is made to believe that post-2004 recruits are responsible for increased cost of EU pensions
Brexit negotiations have become a favourite topic for the press all around the EU nowadays, and the issue on UK contribution to the payment of EU pensions occupies a central place in the debate. Within the myriad of publications, our attention was caught by an article in The Times titled “Britain is fighting a £10 billion demand to fund the rising pensions bill for retired Eurocrats after Brexit.”
You can read the full article here if you are subscribed with The Times.
Not surprisingly, the article reveals a soaring rise of pension liabilities for EU officials which more than doubled in the last decade to reach €67.2 billion. Disappointingly, later on it continues with comments on EU pensions generosity backed with some generalised figures claiming an average retirement age of 62 and pension calculated as 70 per cent of final salary worth more than €155,000 (£136,000) a year.
While this may be accurate for the current snapshot of pensioners comprising of pre-2004 officials, it is worthy to recall that virtually none of the post-Reform (post-2004 and post-2014) recruits will retire at such an early age or get even close to a €155,000 yearly salary! What has particularly struck us was the following statement:
The cost of EU pensions has been driven by rising staff numbers between 2000 and 2010, a period when the EU institutions grew by 53 per cent. The Times understands that Britain’s share of these pension costs is estimated to be about £10 billion.
Sadly, the author of the article forgot to mention that expected post-Reform pensions will be on average one third lower that the pre-2004 pensions!
With such public perception we wonder if we could expect that post-Reform generation of EU officials is once against penalised to pay the bill for those, whose privileges remained intact, protected by the “acquired rights” mantra? The post-2004 generation has already paid! We should not pay twice.