Vatican union wary of pension fund ‘maneuver’
Vatican employees say they can't afford cuts.
Vatican City’s trade union expressed concern Thursday at Pope Francis’ announcement of sweeping changes to the Vatican’s pension fund.
The Association of Vatican Lay Workers, known by its Italian initials ADLV, complained Nov. 21 that Vatican’s management of the pension fund has long been opaque, and said employees were “exhausted by cuts.”
The ADLV was responding to Pope Francis’ declaration that the Vatican needed to introduce “urgent structural measures” to ensure the sustainability of its pension fund.
In a Nov. 21 letter to cardinals and heads of curial departments, the pope said independent experts had highlighted “a serious prospective imbalance in the fund,” which meant “the current system is not able to guarantee in the medium term the fulfillment of the pension obligation for future generations.”
He announced the appointment of Cardinal Kevin Farrell, prefect of the Dicastery for Laity, Family, and Life, as the fund’s “sole administrator.”
The ADLV, formally recognized by the Vatican in 1993 and representing around 1,000 workers, said: “We had heard that sooner or later action would be taken on pensions, and today we have received confirmation that ‘urgent structural measures’ are on the way.”
“It’s clear that there is someone who has proposed such an intervention to the pope, since the pontiff can certainly not know the details of the pension fund accounts himself.”
“To those who suggested this maneuver, we say that we have no knowledge of the fund’s budget either. The data are not public. Yet when one contributes to a financial or pension scheme, since we pay with our contributions, the accounts should be available for all to see.”
“Instead, in the Vatican, these aspects are for the benefit of a few, while we should understand how payroll deductions from employees are administered.”
The association added: “Pensions are also and above all a guarantee for future generations, in a matter of fairness and justice, who are entitled to a worthy future with an adequate pension check. Who certifies a possible liability?”
The ADLV argued that in recent years the Vatican had relied on generously compensated consultants, while “promotions have been granted without any form of public competition.”
“If one now wants to intervene on pensions, then what results has the financial reform initiated four years ago had? What results have been brought about by the ad-hoc staff hired, often at respectable salaries?” the association asked.
The ADLV suggested that the Secretariat for the Economy should draw up a blueprint for “structural reform that would increase income for the Holy See,” so the Vatican would not have to rely on salary reductions to make ends meet.
“Has it taken into account the special attention that the pope always pays to families and their needs?” the association asked. “The employees, exhausted by cuts and above all by the lack of responses to their legitimate request to be heard, also through the ADLV, believe that they have already contributed, to the best of their ability, to making up the deficit and are vigilantly awaiting any future provisions.”
“We hope the ADLV will be received soon to discuss all these matters.”
Despite more than a decade of cost-cutting measures and financial reforms, the Vatican continues to overspend by tens of millions of euros on its annual operations, with senior financial figures warning that the structural budget deficit is growing, not narrowing.
The ADLV said last month that employees feared further salary cuts.
Responding to reports of another reduction in cardinals’ salaries, it said: “For those who are distracted, let us remind you that Vatican employees have already made a significant contribution. Salaries in the Vatican have already been cut.”
The association said that a change made in 2021 could leave an employee in mid-career 20,000 euros — around $20,800 — worse off. It said this was “a not insignificant amount, which risks putting the brakes on many life projects.”
I understand that the Vatican is its own sovereign, but even so, the union of lay employees may want to have an actuary of their own to take a look at how things stand.
I see this is the Italian actuarial organization: http://www.actuary-isoa.com/index.php/about -- They may want to contact someone there to see if there is someone they can consult with.
....but it does look like the Vatican doesn't feel like sharing any of this information with interested parties. How transparent of them.
I think it would be nigh impossible for them not to be wary.