The Holy See pension fund had an unfunded liability of almost 1.5 billion euros a decade ago, according to internal Vatican financial reports obtained by The Pillar.
The same documents show that Vatican financial authorities proposed measures to address the pension problem in 2015, while sources say that “virtually nothing” was done to implement those measures in the intervening years.
Meanwhile, the fund has continued into the red, in line with the Holy See’s broad financial crisis, raising serious doubts about the Vatican’s ability to pay the pensions of lay and clerical employees.
The Vatican has not confirmed the size of the current unfunded liability, but Vatican financial officials warn that the situation has only deteriorated in recent years.
The magnitude of unfunded liability — dating back years sheds — new light on Pope Francis’ decision in November last year to appoint Cardinal Kevin Farrell to oversee the fund as sole director, and to warn that the pension fund would be unable to meet its obligations “in the medium term.”
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