Vatican City, Feb 25, 2015 / 02:04 am (CNA/EWTN News).- Thanks to a two-year increase to retirement age and other financial interventions, the Vatican's pension fund is consistent and the the funding ratio of the pension fund is 95 percent, the Holy See stated Feb. 20.
The release was issued “since for some months, and amplified by press reports, alarming data has been circulating regarding the situation of the Vatican Pensions Fund and on the sustainability of honouring the commitments undertaken towards present and future subscribers,” and was meant to clarify the data.
Italy has seen a frenzy over the situation of the pension fund, which led to several speculations about a possible risk of default for the fund – this is why the pension fund has deemed it opportune to take an official stance on the state of its finances.
The pension fund underscored there is “substantial balance between the resources available and the delivery toward current and future retired persons.”
This balance was achieved thanks to an increase in contributions – an “increase of rates throughout the years up to the current rate of 26% on the total of taxable income” – and to the two-year increase of the age limit, so that now the retirement age is 67 years old for lay employees, and 72 for clerics and religious employees.
Both of these changes were “approved by the Secretary of State following proposals by the Managing Board.”
Regarding the financial resources, the pension fund stated that “financial resources have progressively increased,” such that “the fund is sound and consistent.”
“From a strictly income-based perspective, the economic and financial situation of the institution records a gradual increase of financial and real estate resources both in terms of capital resources which, from 1993 to 2013 increased on average from € 22,256,196 per year, and in terms of the upward trend in net profit, which during the last 6 years has passed from € 23,583,882 to € 26,866,657, sums sufficient to cover the current costs of pensions.”