WG on Article 83 of the SR. Doc. 20140627 Art83_05 Liability of the PSEO at 31.12.2013 Item 5 of the agenda 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_05

PSEO DBO at 31.12.2013, by population type   Population € LRA Active staff 25,014,704,870.89 LRD Deferred pensions 141,049,046.27 LRR Retired non contributing members 14,548,197,480.64 LRB Retired contribuiting members 22,923,585.03 LII Invalids 2,485,920,546.68 LSD Survivors 1,631,913,548.09 Total DBO of Pensions 43 844 709 077.62 DBO of Family allowances 2 102 515 548.31 Total DBO 45 947 224 625.93 Correction coefficients effect (CC) 1 102 733 391.02 Total DBO, CC included 47 049 958 016.95 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_05

WG on Article 83 of the SR. Doc. 20140627 Art83_05 Changes in inputs and DBO valuation Item 31.12.2012 31.12.2013 Change Main variables:   Total PSEO member population 76 543 79 030 2 487 Real Discount Rate (RDR) 1.6% 1.8% 0.2% General Salary Growth (GSG) 0.0% -0.2% Life table ICSLT 2008 ICSLT 2013 2.7% Gross DBO (million €) : DBO of pensions 40 241 43 845 3 604 DBO of Family allowances 1 720 2 103 383 Correction coefficients effect (CC) 1 175 1 103 - 72 Total DBO, CC included 43 136 47 050 3 914 WG on Article 83 of the SR. Doc. 20140627 Art83_05 27.06.2014

Assumptions used for the DBO calculation Actuarial assumption Value Average age difference between married men and women 2 years Probability of being married for men 81% Probability of being married for women 49% Marital status status at evaluation date Coefficient for orphan's and divorced spouse's pension 13% Annex VIII coefficient (correction coefficient) 2.4% Assumed retirement age 63 (officials in service before 01.05.2004), 64 (officials in service from 1.05.2004) or 65 (officials in service from 1.01.2014) Expected inflation rate over the duration of the scheme 1.9% Nominal Discount rate (NDR) 3.7% Real Discount rate (RDR) 1.8% General salary growth (GSG) -0.2% General pension revaluation (GPR) -0.2% (equal to the GSG) Individual salary progression (ISP) 2014 ISP Table Mortality table ICSLT2013 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_05

WG on Article 83 of the SR. Doc. 20140627 Art83_05 Population included in the liability at 31.12.2013 The DBO has been based on a population of 79 030 individuals, consisting of: 58 725 contributing members 19 850 beneficiaries of a retirement, invalidity or survivor's pension 455 deferring the benefit of the pension to the normal retirement age 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_05

WG on Article 83 of the SR. Doc. 20140627 Art83_04 Contributing members at 31.12.2013, by age and sex 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_04

WG on Article 83 of the SR. Doc. 20140627 Art83_05 Non-contributing members at 31.12.2013, by age and sex 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_05

DBO yearly change (CC excluded) Total DBO change   Item Amounts in million € % DBO at 31.12.2012 (T-1) 41,960.8 DBO at 31.12.2013 (T0) 45,947.2 Net change (ΔL) 3,986.4 9.5% Breakdown of the DBO change % (1) 1. Change due to newcomers 244.4 0.6% 2. DBO Change linked to the characteristics of the constant population 2,766.2 6.6% 2.1 Service cost 1,927.7 4.6% 2.2 Interest cost 1,603.7 3.8% 2.3 Benefits paid -1,287.5 -3.1% 2.4 Actuarial gains and losses from experience (balance) 522.3 1.2% 3. Actuarial gains and losses from changes in assumptions -327.3 -0.8% 3.1 Interest rate (RDR) -1,732.1 -4.1% 3.2 Life table 1,666.6 4.0% 3.3 General Salary Growth (GSG) -1,680.9 -4.0% 3.4 Other changes in actuarial assumptions 1,419.1 3.4% 4. Actuarial gains and losses from changes in methodology and other changes 1,303.2 3.1% (1) % with respect to pension liability at T-1 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 Art83_05

Any question on this document? Thank you for your attention 27.06.2014 WG on Article 83 of the SR. Doc. 20140627 8 Art83_05