The voluntary pension fund was established in 1990, at a time when there was no specific law for MEPs. However, the fund was closed in 2009, which meant that no MEPs could become members of the scheme after that year. This change occurred when the new MEPs’ single statute came into effect.
Since President Metsola took office, she instructed the Parliament services to evaluate the situation and find the most effective measures to quickly reduce the impact of the deficit.
The measures implemented by the Bureau today change the conditions of the scheme. These changes include a 50% reduction in the nominal amount of pensions and the suspension of automatic adjustment of pension amounts for all beneficiaries. Additionally, the pensionable age will be raised from 65 to 67 for those who are not yet receiving pensions.
The Bureau also allows beneficiaries to leave the pension scheme within 6 months by making a one-time payment. These measures are aimed at reducing the financial shortfall of the fund and ensuring its long-term sustainability. The Bureau will review the effects of these decisions by the end of 2024 and determine if additional actions are needed at that time.
Background
Over the course of time, Parliament has put into effect numerous strategies in order to manage and regulate the actuarial shortfall of the voluntary pension fund. These strategies encompassed raising the age at which one becomes eligible for pension benefits and imposing a 5% fee on pension disbursements. On the 9th of March, the Court of Justice of the European Union delivered its ultimate verdict on the appeals filed against the decisions made by the General Court. The verdict upheld these decisions and recognized the Bureau’s power to make alterations to the system. This ruling grants the Bureau the ability to swiftly undertake necessary measures.
