The government predicts a continued worsening of the ratio between civil servants and pensioners, according to a report by the Ministry of Economy and Finance on fiscal risks for next year. The document warns that, since 2015, the ratio between the number of civil servants and state agents (FAE) and pensioners has been deteriorating, reaching 2023 with only four civil servants contributing to each pensioner.
According to Lusa, projections indicate that this trend could get even worse, with the ratio falling to two officials for every pensioner by 2027. This scenario puts increasing pressure on the pension system, which depends on contributions from the FAE to cover civilian pension costs.
The report highlights that, despite the fact that the majority of pension expenditure has been covered by these contributions, years such as 2017 and 2021 have seen significant deficits, exacerbated by measures such as the reduction in the retirement age from 65 to 60, implemented in 2017.
The legal change, which aimed to guarantee the sustainability of the system, resulted in a deficit of 13% that year, something unprecedented in the period analysed.
“The state plans to increase its effective contribution to the system from 2.12 per cent in 2023 to 4.63 per cent in 2024″.
In addition, the government has been implementing measures to rationalise public spending, such as the policy of replacing one civil servant with the departure of three, which has contributed to reducing the number of active civil servants.
However, these measures have not been enough to halt the deterioration of the ratio, which, according to the report, calls for an urgent review of pension policies.
The state plans to increase its effective contribution to the pension system from 2.12 per cent in 2023 to 4.63 per cent in 2024.
However, the figure is still below the 7% established by law, which could jeopardise the system’s capitalisation in the medium term.
The report warns that if the state doesn’t fulfil the planned level of contribution, pension liabilities could increase worryingly.
Given this scenario, the government foresees the need for an additional effort to guarantee the sustainability of pension obligations and avoid a collapse in the pension system, whose viability is increasingly threatened by the unfavourable relationship between contributors and beneficiaries.