Civil Servant Pensions in Thuringia: Unraveling the Financial Crunch
- Increase in Pension Payments for Public Servants Highlighted by Auditing Court
Let's dive into the sausage factory of Thuringian finances and investigate the soaring civil servant pensions. Thuringia's State Auditor President, Kirsten Butzke, voiced her concerns to the German Press Agency in Rudolstadt, expressing that the state's provisions for this escalating expense are incredibly low. This financial misstep could potentially impede the state's ability to invest or pursue new projects like free school meals.
In less than a decade, Thuringia's pension payouts for retired civil servants have nearly tripled, climbing from around 136 million euros in 2015 to a projected 450 million euros in 2024. But wait, there's more. The real fireworks are yet to come, with projections suggesting that payments will reach billions in the 2030s, when the first full generation of civil servants will reach retirement. By 2039, Thuringia could be shelling out pensions for approximately 28,500 retired civil servants.
This relentless increase in pension expenses is expected to outpace other state expenses in the coming years, according to Butzke, with an annual increase of around ten percent including salary adjustments, equating to 50-60 million euros per year. By the end of the 2030s, Thuringia's pension expenditure is forecasted to reach around 1.2 billion euros per year.
As Thuringia aligns itself with the pension trends of the old federal states, spending between seven and ten percent of their budget on pension liabilities, Butzke warns that the missed provision for civil servants employed before 2017 can no longer be made up.
Changing the Tide: Preserving Civil Service Appointments
In a bid to offset the forthcoming pension storm, the state resumed its contributions to the current provision for pension liabilities in 2018. Every new civil servant employee now triggers a 5,500 euro state debt, which is repaid annually, with around 328 million euros repaid in the non-pandemic years. This repayment reduces the state's debt and frees up financial wiggle room.
The Thuringian Audit Office advocates for maintaining civil service appointments in strategic areas such as police, justice, finance administration, but emphasizes the need for careful review in other parts of administration. If civil service positions are only granted to gain a competitive edge, as in the case of teachers, the Audit Office advises taking into account the long-term costs that will manifest in the retirement phase.
Civil Servant Pension Court of Auditors Thuringia Pension Payment Rudolstadt Provision German Press Agency
The Civil Servant Pensions in Thuringia, as projected, are expected to surpass billions in the 2030s, potentially threatening the state's capacity to invest in areas such as education or finance. To counter this looming pension crisis, Thuringia resumed contributions to the current provision for pension liabilities, implementing a strategy that triggers a 5,500 euro state debt for every new civil servant employee, which is repaid annually. This move is proposed by the Thuringian Audit Office, who also advocates for maintaining civil service appointments in strategic areas, including finance administration, while exercising caution in other parts of the administration. This action is based on a report by the German Press Agency from Rudolstadt, emphasizing the need for adequate provision to be made for civil servants employed before 2017.
