Open Europe publishes list of Members of European Parliament paying into controversial second pension fund
17 April 2009
Following reports that taxpayers may be required to fill a £100 million hole (€113 million) left in a controversial pension fund available to Members of the European Parliament, Open Europe has tracked down a "closely guarded" secret list of those MEPs who are profiting from the fund.[1]
The list, dating from December 2007, and provided by German investigative journalist Hans-Martin Tillack, names 394 MEPs who had signed up to the scheme. Several MEPs have since left the scheme - so the figures reflect the numbers who were once or are still subscribing to the fund.
The list is not exhaustive, however, as reports suggest that 480 out of 785 MEPs are now signed up to the fund.[2]
The list shows that, in December 2007, 79 percent of all British MEPs were signed up to the scheme, including Labour, Conservative, Lib Dem and UKIP MEPs. 77 percent of Irish MEPs were signed up.
To see the full list of MEPs opting into the fund, as of December 2007, please click here:
http://www.openeurope.org.uk/research/MEPsvoluntarypensions.xls
Further national breakdowns:
Austria: 50 percent of MEPs
Belgium: 62 percent of MEPs
Bulgaria: 50 percent of MEPs
Cyprus: 50 percent of MEPs
Czech Republic: 17 percent of MEPs
Denmark: 57 percent of MEPs
Estonia: 33 percent of MEPs
Finland : 43 percent of MEPs
France: 28 percent of MEPs
Germany: 35 percent of MEPs
Greece: 54 percent of MEPs
Hungary: 37 percent of MEPs
Italy: 64 percent of MEPs
Latvia : 56 percent of MEPs
Lithuania : 46 percent of MEPs
Luxembourg : 50 percent of MEPs
Malta: 40 percent of MEPs
Netherlands: 11 percent of MEPs
Poland: 81 percent of MEPs
Portugal : 79 percent of MEPs
Romania : 6 percent of MEPs
Slovakia : 50 percent of MEPs
Slovenia : 71 percent of MEPs
Spain: 70 percent of MEPs
Sweden: 15 percent of MEPs
A separate list also reveals some former MEPs subscribed to the list, such as French Foreign Minister Bernard Kouchner and Finnish Foreign Minister Alexander Stubb.
Pieter Cleppe, Head of Open Europe's office in Brussels, said:
"The legality of this highly controversial fund has been repeatedly questioned over the last ten years by the European Court of Auditors - its very existence is problematic. Not only do taxpayers put in £2 for every £1 an MEP contributes, but it is not even clear that the MEP's own contribution actually comes out of their salary."
"As if that were not bad enough, now we find that taxpayers are also expected to foot the bill when its casino-style investments go wrong."
"At a time when everyday people are seeing their own pension pots dwindle in the recession, it is shocking that MEPs can imagine for one minute that taxpayers should make up the losses from this questionable and superfluous fund."
Background
The second pension fund is voluntary, and is used in addition to a generous standard pension fund which MEPs from most EU countries receive from their own member state governments.
As explained in recent press reports, taxpayers already contribute two thirds of the fund, with the MEP's own personal contributions coming not from their salary but taken automatically from their generous office expenses. MEPs are supposed to reimburse this account but there are no checks and it is suspected that many do not repay the money.[3]
According to reports, up to £105 million is alleged to have been lost from the fund, which was invested in schemes linked to disgraced American financier Bernie Madoff[4], and the European Parliament has indicated that the losses may now be recouped from the EU budget.
A confidential note seen by the German press from the President of the European Parliament, Hans-Gert Pottering, states that "financial implications for the European taxpayer should be avoided as far as possible", but goes on to say "the European Parliament recognises its legal responsibility to guarantee the right of subscribers to the fund to be paid their additional pension, even when the fund is empty."[5] The note suggests that 480 out of 785 MEPs have opted into the pension.[6]
The European Court of Auditors has repeatedly questioned the legality of the fund since 1999 and has called for clear rules to be established to cover the eventuality of a deficit.[7]
The system has also been criticised elsewhere. In 1997 the Dutch Parliament said the fund was "morally objectionable" and said it allowed MEPs to "get rich by milking the taxpayer."[8]
Similarly, the European Ombudsman has repeatedly ruled that the names of the MEPs who benefit from the scheme should be published.[9] In April 2007, MEPs voted to keep secret the list of names of those MEPs who are benefitting from the fund.[10]
In February 2009 investigative journalist Hans-Martin Tillack published the names of the German MEPs profiting from the fund, in an article in German weekly Stern.[11]
With the entry into force of a new 'Members' Statute' for MEPs following the European elections in June, no new MEPs will be allowed to sign up for the pension fund, as per Article 27. However, the fund will be maintained for "Members or former Members who have already acquired rights or future entitlements in that fund."[12]
Notes for editors:
1) For more information, please contact Pieter Cleppe on 0032 4776 84608 or Lorraine Mullally on 0044 207 197 2333.
2) Open Europe is an independent think-tank calling for reform of the European Union. Its supporters include: Sir Stuart Rose, Executive Chairman, Marks and Spencer plc; Sir Crispin Davis, Former Chief Executive, Reed Elsevier Group plc; Sir David Lees, Chairman, Tate and Lyle plc; Henry Keswick, Chairman, Jardine Matheson Holdings Ltd; Lord Sainsbury of Preston Candover KG, Life President, J Sainsbury plc; Sir John Egan, Chairman, Severn Trent plc and Lord Kalms of Edgware, President, DSG International plc.
For a full list, please click here:
http://www.openeurope.org.uk/about-us/supporters.aspx
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[1] See here: http://blogs.telegraph.co.uk/bruno_waterfield/blog/2009/04/16/meps_to_seek_second_pension_bailout_from_taxpayers
[2] http://www.timesonline.co.uk/tol/news/politics/article6108810.ece
[3] See http://blogs.telegraph.co.uk/bruno_waterfield/blog/2009/04/16/meps_to_seek_second_pension_bailout_from_taxpayers and http://www.timesonline.co.uk/tol/news/politics/article6108810.ece
[4] http://www.dailymail.co.uk/news/worldnews/article-1170278/Now-taxpayers-face-plugging-200m-hole-MEP-pension-fund-257-journey-work.html
[5] http://www.derwesten.de/nachrichten/2009/4/7/news-116581711/detail.html
[6] http://www.timesonline.co.uk/tol/news/politics/article6108810.ece
[7] See here: http://www.europarl.europa.eu/oeil/FindByProcnum.do?lang=en&procnum=DEC/2006/2071
[8]http://www.nrc.nl/binnenland/article1714590.ece/Ik_heb_het_nooit_voor_het_geld_gedaan_%5B26.08.06%5D
[9] For more see here: http://blogs.telegraph.co.uk/bruno_waterfield/blog/2009/04/16/meps_to_seek_second_pension_bailout_from_taxpayers
[10] http://www.telegraph.co.uk/news/worldnews/1550150/MEPs-pension-scheme-inquiry.html
[11] http://www.stern.de/politik/deutschland/:Luxemburger-Pensionsfonds-Das-Schweigen-EU-Parlamentarier/655826.html
[12] Source: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32005Q0684:EN:HTML