Pope appoints Cardinal Farrell to address Vatican Pension Fund challenges

By Linda Bordoni

Pope Francis is asking his closest collaborators to accompany and support him as he calls for a “new and unavoidable path of change” to address the challenges of the Vatican’s pension system and ensure the economic sustainability of the Holy See.

In a letter dated 19 November 2024 and addressed to the College of Cardinals, the Prefects and Heads of the Curial Institutions and Institutions connected to the Holy See, the Pope announced the appointment of Cardinal Kevin Farrell as Sole Administrator of the Vatican Pension Fund, and described the decision as "an essential step in addressing the challenges that our pension system will face in the future."

Urgent matter 

Highlighting the urgency of the matter, the Pope said "The data that now emerge, following the latest in-depth analyses carried out by independent experts, indicate a severe prospective imbalance in the Fund, the size of which tends to grow over time in the absence of interventions."

"Unfortunately,” he continued, “the current system is not capable of ensuring the fulfilment of pension obligations for future generations in the medium term."

The management of the Pension Fund, the Holy Father explained, has long been a focus of concern for successive Pontiffs, motivated by the moral responsibility to provide fair and dignified pensions to employees of the Holy See and Vatican City State.

He acknowledged that addressing the issue will require "difficult decisions that will demand particular sensitivity, generosity, and willingness to sacrifice from everyone."

Expressing confidence in Cardinal Farrell’s leadership, the Pope wrote "Having carefully considered all aspects, I wish to communicate my decision, taken today, to appoint His Eminence Kevin Cardinal Farrell as Sole Administrator of the Pension Fund."

Need to embark on new phase

He praised those who had previously worked on the matter but emphasized the need to "embark on this new phase, crucial for the stability and well-being of our community."

Pope Francis also called for unity and collaboration among the Roman Curia and institutions linked to the Holy See, urging all to approach the necessary reforms with a shared vision.

"We are now all fully aware that urgent structural measures are needed, which can no longer be postponed, to achieve the sustainability of the Pension Fund," he wrote, adding that justice and equity across generations must remain a guiding principle.

Plea for prayer and support

The Holy Father concluded his letter with a plea for prayer and support during this challenging transition.

"To all of you, I request special collaboration in facilitating this new and unavoidable path of change. Trusting in everyone's support and assistance, I ask you to accompany this moment with your prayers," he wrote.