Pope Francis Calls for Pension Fund Reforms

Pope Francis has announced urgent reforms to the Vatican’s pension fund, citing a 'serious imbalance' that threatens its long-term sustainability. In a letter to cardinals, he appointed Cardinal Kevin Farrell as the fund’s sole administrator, emphasizing the need for immediate action to address the fund's projected deficits. The Association of Vatican Lay Workers has expressed concern over the lack of transparency regarding the fund's finances and fears that further cost-cutting could impact employee compensation. The Pope acknowledged that these reforms would require 'difficult decisions' and collective sacrifice, particularly in light of the Vatican's ongoing budget deficits exacerbated by financial mismanagement and the COVID-19 pandemic. The pension fund, established in 1992, has faced scrutiny for its viability, with estimates of liabilities reaching approximately 631 million euros. The situation underscores the Vatican's precarious financial status, prompting calls for accountability and fairness in the management of employee contributions.