Vatican City – In a sign the credit crunch is sparing no one, the Vatican is set to raise its staff retirement age by two years to help make ends meet.
From January 1, 2010, newly hired lay staff will retire at 67 instead of 65, while newly hired members of religious orders and priests (below the rank of bishop) will retire at 72 instead of 70.
“Even the Vatican is feeling the crisis and we need to be careful about spending like everyone these days,” said the Rev. Ciro Benedettini, deputy director of the Vatican press office. “Austerity budgets are required to survive,” he added.
There is no change for bishops and cardinals working at the Vatican, who continue to retire at age 75, said Benedettini.
After three years in the black, the Vatican slid into the red in 2007, with reported income of about $372 million outweighed by expenses of $386 million.
The $14-million deficit reported was mainly caused by a fall in the value of the U.S. dollar. Most donations to the Vatican are in dollars while its expenses are mainly in euros.
On top of the current credit crunch, the Vatican is also struggling as its staff live longer after they have retired, swelling its spending on pensions. “This measure takes into account the increased life expectancy of the population,” a Vatican document outlining the changes stated.
Benedettini said Vatican staffers were not being forced to work longer without reward. “We raised wages last year, and as of next year the Vatican will make a larger contribution to the employees’ regular pension payments,” he said.
By Tom Kington
Religion News Service
Copyright 2009 Religion News Service. All rights reserved. No part of this transmission may be distributed or reproduced without written permission.
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posted May 27, 2009 at 12:58 pm
They had to do this. America did it to our new retiring people quite a while back. You just can’t give money away and make it too easy for people when they get old, whether it be secular or religious.
posted May 27, 2009 at 3:04 pm
Hey, watch it! We old people have paid our dues, even those whose job it was to inflict Catholicism on innocent people. It’s too bad so many less well funded outfits aren’t giving raises to the people whose pensions they are withholding.
posted May 27, 2009 at 10:41 pm
If the money isn’t there, it isn’t there. It used to be that the elderly worked pretty much up until they physically were unable to do so, and they quickly died soon after. Technology and health care have improved to the point where it is now possible for 70 year olds (and even older!) to work a few hours a day–for the wages that will help keep food on their table and a roof over their heads. As St. Paul once said (paraphrased): If you don’t work, you won’t eat. That phrase isn’t just some kind of moral platitude, it’s reality.
It also needs to be remembered there are fewer young people around to work–to be the employees, employers, and customers that keep 401Ks and pensions (and Soc. Sec/Medicare) afloat.
posted May 28, 2009 at 2:59 am
But there’s a lot more and better technology to do a lot of the work that used to require people. I don’t buy the argument that seems to be so popular now that claims we need more people to succeed.
posted May 28, 2009 at 12:42 pm
People can believe any old thing they want to believe. Buy this argument or ignore that argument.
My husband has put over 30 years at his company. He is fully pension eligeable and has a 401K besides (He has not retired yet). He has enough credit to receive Soc. Sec and Medicare.
Well, we all know what has happened to the various 401Ks out there. And what happens when his company goes under? (A very real possibility I might add!) What happens when Soc. Sec dries up (and it is going to. Like it our not, you can’t tax a robot or computer).
I can belive as much as I like that there is $200,000 in his 401K, that he is going to get $2000 a month pension, and $2000 a month in Soc Sec,(and Medicare too). But my belief isn’t going to make it so. Reality is, the money isn’t there, and if you don’t work, you won’t get any money, and you won’t be able to put food on your table either.