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SOS your pension! – Generation 2004’s analysis: drastic further reductions are looming

[1]The service cost of EU staff pensions is rising very quickly while cost of salaries is decreasing rapidly because of the hiring of new officials at low grades, the massive recruitment of underpaid CAs and the reduction in staff numbers. As a result, Generation 2004 reckons that the service cost of pensions will exceed the cost of salaries around 2025. It is unlikely that MS will accept to spend more on pensions of retired staff than on salaries of active staff. Since MS do not seem to find any value in increasing our salaries, the most likely decision will be drastic reduction of pension benefits.

 

So be prepared: the EU pension system is like a ship heading at full speed among a pack of icebergs. The staff regulations, essentially designed in the 1950s and 1960s, make no provision for a life-boat in case the ship sinks, which will leave many EU civil servants, particularly those from new MS, stranded on an icy sheet or drowning in a sea of bureaucratic coldness, which we know only too well.

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