Pope reforms management of Vatican pension fund

May 29, 2015

Pope Francis has issued new statutes for the Vatican’s pension fund, providing for a new president of the fund, chosen by the Pontiff and supervised by a board that will include lay experts.

In a motu proprio released on May 29, the Pope rules that the president of the pension fund will be chosen by the Pontiff for a 5-year term, which can be renewed once. The appointment of a president solely responsible for the pension fund is a change in Vatican policy; to date, the fund has been just one of the responsibilities of the president of the Administration of the Patrimony of the Apostolic See: currently Cardinal Domenico Calcagno. The motu proprio stiplulates that the president will be chosen by the Pope from among three candidates nominated by the Council for the Economy. His work will be supervised by a board of directors that will include financial experts “from various different countries,” along with members appointed by the Vatican offices involved in financial affairs, and by Vatican employers enrolled in the pension fund.

In briefing reporters about the new rules, Father Federico Lombardi, the director of the Vatican press office, said that no immediate changes are planned in the investment policies of the fund. The new board of directors will be empowered to advise the president on investment strategies.

In February, Cardinal George Pell, the prefect of the Secretariat for the Economy, informed cardinals that the Vatican pension fund would need an infusion of cash in order to meet future obligations. The board of the pension fund quickly issued a public statement that the fund is solvent and “there is a substantial balance between available resources and commitments to current and future employees.”

 

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Further information:

• Pope: Motu Proprio revises Vatican’s Pension Fund (Vatican Radio)
• Vatican Pension Fund: President to be appointed by the Pope (Vatican Insider)
• Vatican pension fund is solvent, auditors assure (CWN, 2/20)