UK may face a demand from Brussels to pay towards £50b pension fund and the money will go current and retired European Union officials. Britain could have to pay billions of pounds in pension payments for Eurocrats even after it leaves the European Union.
The country may face a demand from Brussels to contribute towards the 60 billion euro (£50billion) total pension liability for all current and retired EU officials.
EU pensions are covered on a ‘pay-as-you-go’ basis from the EU budget rather than through employee contributions invested into a fund.
It means the EU could ask Britain to hand over a lump sum to cover pension liabilities built up during its time as a member. Around 1,730 Britons make up almost eight per cent of the 22,000 retired EU officials drawing pensions at present.
The Brussels employees are entitled to pensions worth up to 70 per cent of their final basic salary, Daily Mail reminds.