Eurostat report of 1 September 2013 Actuarial assessment of the PSEO at 31.12.2012 Eurostat report of 1 September 2013 Item 4.1 of the agenda 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_03

WG on Article 83 of the SR. Doc. 20140627 Art83_03 Contribution rate to apply from the 1st July 2012 + 1.0% 11.6% -1.00% 10.3% (3) The calculation of the staff contribution rate is based on the PSEO population at 31.12.2012 12.60% 10.60% (1) As to art.2.1 in Annex XII of the SR, adjustments to the pension contribution rates are capped to 1%. (2) Rate applied since 1st July 2011, having the Council not yet adopted the 11% pension contribution rate effective from 1st July 2011 proposed by the Commission Contribution rate since 01.07.2011 Upper bound of the gap Positive gap to update the rate (1) Negative gap to Lower bound of the gap (1) Calculated contribution rate 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_03

WG on Article 83 of the SR. Doc. 20140627 Art83_03 Yearly change in the calculated rate for pension The contribution rate calculated in 2013 (10.3%) was higher (+0.4%) than the one calculated in 2012 (9.9%) The 0.4% increase is mainly due to changes in: Real discount rate Life Table Population 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_03

WG on Article 83 of the SR. Doc. 20140627 Art83_03 Contribution rates from 2004 The 2013 calculated CR effective from 1.7.2013, has become 10.3% following the 0.8% increase of remunerations and pensions effective from 1 July 2012, as from Regulation (EU) N° 423/2014 of 16 April 2014 of the European Parliament and Council. 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_03

WG on Article 83 of the SR. Doc. 20140627 Art83_03 2013 Computation of the Contribution Rate The contribution rate was computed as the actuarial value of: the service cost (1 166 million €) divided by the staff annual basic salaries (3 755 million €) The total service cost was the sum of: Service cost for retirement (1 079.4 million €) Service cost for invalidity (46.3 million €) Service cost for death (40.2 million €) 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_03

WG on Article 83 of the SR. Doc. 20140627 Art83_03 Summary of main actuarial assumptions The provisional assessment was based on a population of 57 024 contributing members at 31.12.2012 Real discount rate (RDR) = 2.7% (it was 2.6% in 2011) General salary growth (GSG) = -0.2% (same as in 2012) Individual salary progression (ISP) = “2012 ISP table” ISP Group Average 1 Officials recruited before 01.05.2004 1.6% 2 Officials recruited from 01.05.2004 onwards 2.0% 3 Temporary Agent 4 Contract Agent 1.0% 5 Parliamentary Assistant 0.0% 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_03

WG on Article 83 of the SR. Doc. 20140627 Art83_03 Reference population by Institution and Agency 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_03

WG on Article 83 of the SR. Doc. 20140627 Art83_03 Reference population at 31.12.2012 by age 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_03

WG on Article 83 of the SR. Doc. 20140627 Art83_03 Impact of changes on the pension contribution rate 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_03

WG on Article 83 of the SR. Doc. 20140627 Art83_03 Technical implementation of the Annex XII Technical questions were dealt with by Eurostat in cooperation with national experts (Article 83 Working Group) Eurostat exchanged relevant information with actuaries from ISRP, Eurocontrol and EPO Eurostat was assisted by Ernst & Young Actuaires-Conseils / Paris Ernst & Young confirmed the final contribution rate presented in the Eurostat Report of 1st September 2013 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_03

Any question on this document? Thank you for your attention 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_03