‘One-off’ early retirement plan wins approval

Date: 14/06/01

By John Shelley

MEPS have backed the Commission's plan to offer early retirement to 600 officials as part of its drive to bring in new blood, but they have warned Romano Prodi that it must be regarded as a "once-and-for-all measure". Scottish socialist Bill Miller, whose report on the subject was approved by the full Parliament yesterday (13 June), said: "Assuming the scheme will advance the objectives of the reform of the Commission by enabling it to refocus the use of its resources on priority activities, it is to be commended."

But he added a stern warning to Prodi: "If the scheme does not succeed in achieving the Commission's aims, the Commission should not be permitted a second opportunity. The scheme must be regarded as being in the nature of a once-and-for-all measure."

Prodi's plan to offer a voluntary retirement scheme to staff working in 'non-crucial' roles is seen as a key element in his drive to modernise the institution.

A "peer review" last year, in which Commissioners were asked to identify essential priorities in their own portfolios, showed there was a shortfall of over 1,200 staff working on what the executive itself considers to be its core work. By pensioning off long-serving staff, Prodi hopes to free up positions for fresh talent.

Miller expects a flood of applicants wanting to retire, encouraged by the scheme.

Qualifying officials will receive a monthly allowance of between 60% and 70% of their last basic salary, depending on their age and length of service.

They will also keep allowances to help pay for their children and their education, and a proportion of their household allowance.

Sickness insurance cover will continue to be provided, and the qualifying officials will be eligible for their full pension at 65.

The Commission insists that the scheme will not cost the taxpayer any extra money.

MEPs have backed the Commission's plan to offer early retirement to 600 officials as part of its drive to bring in new blood, but they have warned Romano Prodi that it must be regarded as a 'once-and-for-all measure'.