6th Meeting of the INTOSAI Working Group on Key National Indicators Austrian experiences about sustainability indicators in the field of demographic change.

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Presentation transcript:

6th Meeting of the INTOSAI Working Group on Key National Indicators Austrian experiences about sustainability indicators in the field of demographic change Elisabeth DEARING, SAI of Austria2

Content Fiscal sustainability facing demographic changes Scope of the audit Lesson learnt Elisabeth DEARING, SAI of Austria3

Fiscal Sustainability Fiscal sustainability relates to the ability of a government to assume the financial burden of its debt currently and in the future Fiscal sustainability indicators provide a firm basis to identify the size and the main source of risks to public finance sustainability in a long-term perspective Elisabeth DEARING, SAI of Austria4

Sustainable Development Indicators (EU) Theme 4 - demographic changes Elisabeth DEARING, SAI of Austria5 Source: EUROSTAT 2011

Public pensions expenditures as additional costs of an ageing population Austrian Federal Financial Statement 2011 Public pensions expenditures: 25, 2 % of the total expenditures pension expenditures for public servants 8 bn EUR impact on fiscal sustainability Elisabeth DEARING, SAI of Austria6

Scope of the audit Performance audit on the impact of legal and HRM measures on the duration of employment covers 3 ministries (interior, justice, labour and social affairs) around public servants Focus on incentives for the organization the individual public servant Elisabeth DEARING, SAI of Austria7

Audit procedure Collection of data on all public servants* from 2008 until 2012 Analysis of the data Share of different forms of retirement (e.g. inability to work, at legal retirement age) Retirement age Differences between e.g. police and general administration officers men and women * including permanent civil servants and contractual staff Elisabeth DEARING, SAI of Austria8

Lesson learnt I Choice of the indicators influences process and results of auditing Technical difficulties might influence the choice of the indicators „Employment rate of older workers“ is not productive at institutional level Elisabeth DEARING, SAI of Austria9

Lesson learnt II Retirement age as starting point to bridge the gap between macroeconomic indicators and audits at institutional level Recommendations for the ministries beyond simply „ raising the retirement age“ e.g. Focus on „retirement because of inability to work“ (individual incentives) Integrate financial responsibility and HRM as incentive for the organisations Elisabeth DEARING, SAI of Austria10

Elisabeth Dearing Phone: Elisabeth DEARING, SAI of Austria11