Former members of the European Parliament will have their payouts from a plush pension scheme that’s nearing implosion cut in half in an effort to stave off a bailout that would cost EU taxpayers millions, says a report from POLITICO.
Former members of the European Parliament will have their payouts from a plush pension scheme that’s nearing implosion cut in half in an effort to stave off a bailout that would cost EU taxpayers millions, says a report from POLITICO.
More than 900 people, including former pro-Brexit MEPs and several current EU commissioners, receive thousands of euros in monthly payouts from the Parliament’s additional pension pot. But the retirement scheme, which ran for two decades before being closed to new members in 2009, is poised to run out of money by early 2025, leaving EU taxpayers with a €310 million bill.
Senior EU lawmakers in charge of the institution’s finances have agreed to slash payouts to beneficiaries by 50%, raise the eligible age from 65 to 67, freeze the annual inflation-linked increase of payments, and invite more beneficiaries to accept a one-time offer to quit the scheme.
This will likely extend the life of the fund until the second half of 2027 and reduce the €310 million black hole to some €86 million.
