Documents
Sustainability of pension schemes for government employees of European Member States
Concise Report for the Directors-General
Joost de Winter: Mercer Human Resource Consulting joost.de.winter@mercer.com
Introduction
Following the research carried out during the Irish Presidency into the pension schemes for government employees, the Dutch Presidency commissioned a study into the sustainability of retirement schemes for government employees in the Member States of the European Union. For this purpose, an analysis was made of the pension schemes for government employees in 19 Member States.
In this study, emphasis was placed on a quantitative analysis of five pension schemes, which may serve as examples of the considerable diversity of pension systems for government employees of the Member States. The research method used brings to light the development of future costs and liabilities of the various types of pension schemes. Research was carried out into the way in which the pension costs of the various pension schemes are affected by inflation and the development of salaries, and by the ageing of their membership. The effect on the various pension schemes of limits on salary increases and of an increase in the retirement age was also measured. On the basis of this quantitative research, recommendations can be made for possible pension policies which may increase the sustainability of pension schemes.
The quantitative method makes it possible to compare pension schemes with each other, but also offers the possibility of calculating the effects of reform measures. The method is therefore suitable for benchmarking European pension schemes for government employees.
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