Armed Forces Welfare Fund, because the Court of Auditors launches jabs
The financial statements for the 2019 financial year of the Armed Forces Pension Fund approved by the Court of Auditors. However, for the accounting magistrates it is urgent to review the mechanisms that govern the contribution revenue and the performance of the Entity. And not only.
The Court of Auditors approved the financial management of the Armed Forces Pension Fund for the financial year 2019.
"The management of the Entity closes with an economic surplus of 23 million euros, an increase compared to the previous year (€ 16.7 million) determined, above all, by the reduction in costs", note the accounting magistrates.
At the same time, "the pension balance is negative in 2019 equal to € 8,405,426, approximately 53% lower than that of 2018 (- € 18,068,009)".
In view of this, for the Court it is "urgent to review the mechanisms that govern the contributions and benefits of the Cassa, in order to ensure long-term economic equilibrium".
The main function of the Entity is to pay its members, upon termination of service, an "additional indemnity" with respect to the services provided by the INPS. In addition, the Armed Forces pension fund provides additional welfare benefits, of a discretionary nature, ie the granting of subsidies and loans to members who are in particular difficult situations.
Full details of the report on financial management of the pension fund of the FA for the year 2019.
POSITIVE PERFORMANCE OF SHAREHOLDERS 'EQUITY
The Section for the control of entities approved, with Resolution no. 101/2021, the report on the financial management of the Entity for the financial year 2019.
From an accounting point of view, the Court highlighted "a positive trend in the net assets of the Social Security Fund, which increased from 773.3 million in 2018 to 796.3 million in 2019, due to the profit for the year ".
BUT NEGATIVE SOCIAL SECURITY BALANCE
However, the social security balance for 2019 (consisting of the difference between contributory income and expenses for services) is favorable only for the categories of Officers – of the Army and Carabinieri, as well as those of the Navy and Air Force and overall it reaches a negative result of € 8,405,426, approximately 53% lower than that of 2018 (-18,068,009).
"The data, although significantly improved compared to the previous year, remains negative" underlines the Court.
URGENT REVIEW OF THE MECHANISMS FOR THE CONTRIBUTION REVENUE OF THE CASH OF ARMED FORCES
Precisely for this reason, for the accounting magistrates "a revision of the mechanisms that govern the contribution revenues and the benefits of the Bank is becoming increasingly urgent, in order to ensure its long-term economic equilibrium".
DECREASE IN MEMBERS OF THE ARMED FORCES Welfare Fund
Furthermore, the Court of Auditors noted in its report the decrease in the number of Entity members.
The number of members of the Cassa, at the end of 2019, corresponds to 191,816 units, with a decrease of 1,350 units compared to the previous year (193,166).
REVIEW THE BENEFIT CALCULATION SYSTEM
In this perspective, the Court draws the attention of the competent Authorities to the need for an organic reconsideration of the compensation calculation system, aimed at ensuring management balance and suitable for guaranteeing correspondence between the contributions of members during their career and the related social security benefits.
In particular, the accounting magistrates point out "the need for the Cassa to equip itself on a permanent and preventive basis with the information and documentary elements relating to the position of each member (contributions paid, years of service, etc.) and not to make use only of those provided from time to time. in time by the Defense Administration at the time of the payment of the indemnities ".
"This solicitation, as well as for strictly accounting purposes, is also aimed at the possibility for the Entity to formulate more suitable actuarial forecasts on the dynamics of the relationship entered into expenditure in the long term and on the relative balances, as well as for the verification of internal relationships in the various sectors of registered "underlines the Court of Auditors.
UNIFORM THE TREATMENT OF ALL ARMED FORCES
Finally, "having also noted the heterogeneity of the treatments between parigrade subjects of different Armed Forces", the Court reiterated "the desirability of a regulatory review that standardizes the treatment of all Armed Forces. interested ".
In order to ensure the sustainability of the management of the Entity, a more precise correlation between contributory income and services is in fact necessary.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/cassa-di-previdenza-delle-forze-armate-perche-la-corte-dei-conti-lancia-stilettate/ on Sun, 21 Nov 2021 14:03:41 +0000.