Pope appoints US cardinal to manage Vatican's troubled pension fund

VATICAN CITY (CNS) -- Pope Francis has appointed Cardinal Kevin J. Farrell, prefect of the Dicastery for Laity, the Family and Life, as the sole administrator for the Vatican's pension fund, which is currently unable to guarantee future obligations in the medium term.

"We are all fully aware now that urgent structural measures, which can no longer be postponed, are needed to achieve sustainability of the pension fund," the pope wrote in a letter addressed to the College of Cardinals and the heads of the Roman Curia and other institutions connected to the Holy See.

Given the limited resources available to the Holy See and because appropriate funding will be needed to cover all pension obligations, there is a need for "making decisions that are not easy and will require special sensitivity, generosity and a willingness to sacrifice from everyone," the pope wrote in the letter dated Nov. 19 and published by the Vatican Nov. 21.

"In light of this and with everything considered, I wish, therefore, to inform you of the decision I made today to appoint His Eminence, Cardinal Kevin Farrell, sole administrator for the pension fund, believing that this choice represents, at this time, an essential step in meeting the challenges facing our pension system in the future," he wrote.

The letter comes just a few months after the pope wrote to the College of Cardinals Sept. 16 saying, "Additional effort is now needed on everyone's part so that a 'zero deficit'" may be an achievable goal.

The pope had already reduced the salary for cardinals living in Rome in previous years and completely eliminated their allowances starting Nov. 1; it was estimated that without the allowances, the cardinals now receive just over 10% less each month.

"Since we have to deal with serious and complex problems that risk worsening if not dealt with in a timely manner," the pope wrote Nov. 19, it was time to address the management of the Vatican's pension fund, which has been an issue of concern ever since its establishment.

The latest studies carried out by independent experts, the pope wrote, now point to "a serious prospective imbalance in the fund," which will only increase over time without any interventions.

"In concrete terms, this means that the current system is unable to guarantee in the medium term the fulfillment of the pension obligation for future generations," he wrote, emphasizing that "justice and equity" across generations must remain guiding principles.

The pope asked everyone for their "special cooperation in facilitating this new and unavoidable path of change" and thanked all those who have "dealt with this sensitive matter over the years."

This "new phase" is imperative and fundamental, he explained, for "the stability and well-being of our community, with promptness and unity of vision so that the actions due are expeditiously implemented."

Cardinal Farrell also is president of the Vatican's Investment Committee, leads a commission determining confidential contracts and is the camerlengo of the Holy Roman Church. He is a naturalized U.S. citizen born in Ireland and served as auxiliary bishop of the Archdiocese of Washington from 2002 to 2007 and bishop of Dallas from 2007 to 2016.