2005 update of the 2004 actuarial assessment of the EU pension scheme Art83 WG Meeting 2005 update of the 2004 actuarial assessment of the EU pension scheme Final results Item 3 of the Agenda 19.06.2005 Art83WG / Doc.20060619 Art83_03

Timing of the actuarial assessment Contribution rate Content Timing of the actuarial assessment Contribution rate Changes on computation Summary of main parameters Implementation and use 19.06.2005 Art83WG / Doc.20060619 Art83_03

Timing of the actuarial assessment 19.06.2005 Art83WG / Doc.20060619 Art83_03

Officials’ contribution rate from the 1st July 2005 (graph) 19.06.2005 Art83WG / Doc.20060619 Art83_03

The contribution rate is computed as the actuarial value of Contribution rate (computation) The contribution rate is computed as the actuarial value of the service cost (721 millions €) divided by the total of the staff annual basic salaries (2 343 million €). The total service cost is the sum of: Service cost for retirement (595 million €). Service cost for invalidity (88 million €). Service cost for death (38 million €). 19.06.2005 Art83WG / Doc.20060619 Art83_03

Change on computation compared to 2005 provisional assessment No mayor changes exist between the 2005 provisional and final actuarial assessments The ISP table was improved according to recommendations of the June 2005 Art83 WG (2005 ISP v1 table) The new total service cost was 721 millions € (724 millions € in the provisional assessment) The calculated contribution rate remained the same (10.3%) 19.06.2005 Art83WG / Doc.20060619 Art83_03

Summary of main actuarial assumptions The assessment was based in a population of 34 628 contributing members at 31.12.2004 Discount rate = 3.8% General salary growth (GSG) = 0.2% Individual salary progression (ISP) = “2005 ISP v1 table” (weighted rate at 31.12.2004 = 2.3%) 19.06.2005 Art83WG / Doc.20060619 Art83_03

Implementation and use Eurostat was assisted by Ernst & Young Actuaires-Conseils / Paris on the implementation of the methodology described in the Annex XII Ernst & Young examined the final contribution rate calculated by Eurostat The Commission proposal on the official pension rate to ensure the balance of the pension scheme was based in the Eurostat report The Council agreed on update the official contribution rate to 10.25% from the 1st July 2005 19.06.2005 Art83WG / Doc.20060619 Art83_03

Thank you for your attention The Working Group is asked to express its views on the issues discussed in this paper. Thank you for your attention 19.06.2005 Art83WG / Doc.20060619 Art83_03