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IPE special report May 2018

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Auditors slam EU’s e74m invalidity pension scheme

LUXEMBOURG – The European institutions’ invalidity pension scheme has been criticised by auditors, who say there are shortcomings in the system and “frequent and costly delays”.

The European Court of Auditors said it estimates the total net actuarial cost of the invalidity pension awarded each year is around 74 million euros. It found scope for financial savings through the adoption of “adequate administrative measures”.

The auditors say they have reviewed the scheme, which awards around 200 invalidity pensions each year, and found a “complex picture”.

There were “shortcomings” in the scheme’s overall policy and management systems, along with “a lack of clarity and coordination” between departments.

“The result is frequent and costly delays in the opening and progress of the invalidity procedure,” the auditors found.

The European Commission broadly welcomed the 48-page report. The auditors found no evidence that invalidity pensions were awarded improperly.

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