EU pension fund faces €326.2m deficit

A pension fund for Members of the European Parliament has a deficit of up to €326.2m, it has been reported.

Paperwork seen by German newspaper Bild, said that the fund, which closed to new members in 2009, held assets worth €146.4m at the end of 2016, at which point the fund’s liabilities stood at €472.6m.

The European Parliament will be responsible for the deficit if the fund does go bust, meaning it could be the European Union’s taxpayers who foot the bill.

According to Bild, the estimated date of insolvency is roughly estimated between 2024 and 2026, only possible if the fund’s assets manage to generate a 2 per cent return annually.

Founded in 1990, the fund has over 700 MEP members, with 145 set to retire by 2022, it has been reported. In 2009, the fund had a deficit of €120m.

The introduction of the EU Members’ Statute meant the fund was closed, and MEPs set to retire into the future will receive payments and a non-contributory pension from the EU Parliament’s budget.

    Share Story:

Recent Stories

Podcast - The power of three: Using Common Contractual Funds to improve tax outcomes for investors
Large asset owners are still investing in equities in a way where they are taxed on their income. The implication is that they get a poorer return. They need to, and can, improve this, but how?

In this podcast, AMX Head of Client and Manager Development, Aaron Overy, and AMX Product Tax Specialist, Kevin Duggan, discuss with European Pensions Editor, Natalie Tuck, about three options to help ensure good withholding tax outcomes for institutional investors.

How the US’s robust securities law can benefit European investors
Over recent years several financial scandals have shocked investors, such as the Danske Bank money laundering case. When a scandal like this occurs, investor returns suffer, which is why many seek redress. Many European investors seek to recover assets lost as a result of securities fraud through U.S. courts, with their robust securities laws.

In this podcast, Jeremy Lieberman, Managing Partner at Pomerantz LLP, talks to European Pensions Editor, Natalie Tuck, about how European investors can use U.S. courts to recover assets lost to securities fraud and the challenges facing investors seeking compensation.
Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows

Europe’s pensions challenges
Francesca Fabrizi meets Matti Leppälä, Secretary General and CEO of PensionsEurope, to discuss the key aims and objectives of the association today.