Public employees retirement: the consequences of the reform
The reform of the Public Administration, Legislative Decree 90/2014, provides for a rejuvenation of the public sector. In fact, PA employees will be able to retire at 62 with the maximum contributions achieved. A novelty that applies to both employees and managers who, having reached the necessary years of contributory seniority, may also be retired ex officio.
The reform also abolished detention in service, canceling the rule that allows those who exceed the age set for retirement to continue working. The standard is already in effect from August 31, 2015 for teachers and from October for all other categories. Exceptions are military and magistrates, for whom it will activate on December 31st.
Public employee pension expenditure
Nothing to do instead for the 4 thousand teachers of ” Quota 96 ” for which the government has not yet managed to find the necessary funds to cover their retirement. But what are the effects that the civil servants pension reform has had on the state coffers?
According to what was announced, the expenditure for pensions paid by Social Institute to civil servants amounted, on January 1, 2015, to a total sum of 65 billion USD for 2,818,300 social security treatments. An increase of 0.16% compared to those recorded on January 1 of last year.
Obviously, a greater number of pension treatments corresponds to an increase in the overall expenditure of civil servants, which in fact rose by 0.75% in 2015. This is what emerged from the data of the Social Institute Public Employees Management Observatory, published last May 15.
Pension calculation: civil servants cost more and more
On 1 January 2015, on average, the monthly pension allowance for civil servants was $ 1,772.9 gross, $ 10 more than in the same period of the year. The average amount of treatment, explains the Institute, is 2,175.1 USD for men compared to 1,486 USD for women. Female workers represent 58.4% of the total public pensioners, but receive on average a check equal to 68.3% of that of men.
By checking the data for individual pension funds, it is clear that the highest number of pension treatments, 1,677,746, are paid by the State Employee Pension Treatment Fund.
Following are the pensions paid by the Pension Fund for Employees of Local Authorities, 1,054,013, and those of the Healthcare Fund with 68,540 total treatments. The Teachers’ Pension Fund and the Official Judicial Pension Fund close the line with 15,095 and 2,906 pensions paid respectively.
The expenditure for the new pensions paid was 2.5 billion, equal to 4% of the total expenditure. The average amount of civil servants’ pensions paid out in 2014 was instead 1,872.8 USD, a good 6% more than the average amount relating to the total of current pensions.