EU sickness benefit levels “unparalleled”, say Union auditors

Date: 10/04/03

By David Cronin

A €124 million-a-year scheme for paying EU officials on sick leave is unparalleled, according to a report by the European Court of Auditors.

The study by the Luxembourg-based financial watchdog found that the invalidity pension system operated by the Union's institutions is far more generous than ones in equivalent public administrations.

"Unlike other schemes, where an invalidity pension ceases to be paid once the recipient...starts to receive a retirement pension, under the Community scheme, an invalidity pension continues to be paid until the beneficiary dies," the auditors note.

The auditors found that some €124 million was paid out by the EU scheme in 2000.

Typically, around 200 invalidity pensions are awarded to officials in any one year.

Such payments are only made to officials on sick leave after each request has been examined by three doctors. The rules state that the payments must amount to at least 120% of the salary paid to an official at the lowest "D4" grade, who earn €2,099 per month.

The auditors found that psychological disorders account for about half of cases, with bone, muscle and heart complaints making up many of the rest.

A sample of those on sick leave were asked to complete a questionnaire which found that one-third of respondents were "dissatisfied with the nature of their duties and/or the conditions in which they had to perform them".

"They generally blamed over-work, pressure of deadlines, shortage of human and material resources and, quite frequently, the role of management in relation to these problems," the auditors said.

The study finds that checks, to decide whether those receiving the payments should continue to receive them on a long-term basis, are rare.

In the European Commission, for example, only 6% of absences are subject to scrutiny. Comparable figures for absent staff employed by the European Parliament were unavailable.

Back in 1989, a European Commission report recommended reforms to the scheme, which have not been implemented. These would replace invalidity pensions with retirement pensions once an official on leave reaches 65; they would also make such payments subject to pension contributions.

If the measures were put into effect, the auditors estimate that the total net cost of sickness payments could fall by around 25% per year.

Replying to the auditors, the Commission said that the current reforms envisaged for the EU civil service, aimed at reducing harassment and encouraging promotion on merit, "may help to enhance staff motivation and thereby reduce factors contributing to invalidity".

A spokesman for the Parliament said it is working on various improvements, which would provide for "close monitoring of sick leave with a view to the early detection of anomalies and the initiation of appropriate follow-up action".

A €124 million-a-year scheme for paying EU officials on sick leave is far more generous than ones in equivalent public administrations, according to a report by the European Court of Auditors.