Eurostat report of 1 September 2014 Actuarial assessment of the PSEO at 31.12.2013 Eurostat report of 1 September 2014 Item 4 of the agenda 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_03

WG on Article 83 of the SR. Doc. 20150629 Art83_03 Contribution Rate (CR) to apply from the 1st July 2014 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_03

Yearly change in the PCR Council Regulation 1201 of 7 November 2014, sets out the PCR for 2011, 2012 and 2013. 2013 PCR was set to 10.9%, 1% higher than the one calculated in 2012 (9.9%) The 1% increase is mainly due to changes in: Real Discount Rate, Life Table, Population. 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_03

WG on Article 83 of the SR. Doc. 20150629 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. 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_03

WG on Article 83 of the SR. Doc. 20150629 Art83_03 Computation of the 2014 Contribution Rate The contribution rate was computed as the actuarial value of: the service cost (1 237.8 million €) divided by the staff annual basic salaries (4 065.4 million €) The total service cost was the sum of: Service cost for retirement (1 150.1 million €) Service cost for invalidity (50.7 million €) Service cost for death (37 million €) 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_03

WG on Article 83 of the SR. Doc. 20150629 Art83_03 Summary of main actuarial assumptions The 2014 assessment was based on a population of 58 725 contributing members at 31.12.2013 Real Discount Rate (RDR) = 2.7% General Salary Growth (GSG) = -0.2% Individual Salary Progression (ISP) = “2013 ISP table” Function groups Average AD - Administrators 1.4% AST - Assistants SC - Secretary / Clerks   GFI - Contract agents. Function group I 1.0% GFII - Contract agents. Function group II GFIII - Contract agents. Function group III GFVI - Contract agents. Function group IV 0.8% PA - Parliamentary assistants 0.9% Weighted average 1.3% 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_03

WG on Article 83 of the SR. Doc. 20150629 Art83_03 Reference population by Institution and Agency Institution or Agency 31.12.2012   31.12.2013 Total % European Commission 30 634 54% 31 090 53% European Parliament 8 644 15% 9 023 Council of the European Union 3 087 5% 3 112 Court of Justice of the European Communities 1 997 4% 2 210 Court of Auditors 897 2% 946 Economic and Social Committee 756 1% 762 Committee of the Regions 545 542 Other institutions and decentralised Community agencies 10 464 18% 11 040 19% 57 024 100% 58 725 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_03

WG on Article 83 of the SR. Doc. 20150629 Art83_03 Reference population at 31.12.2013 by age 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_03

WG on Article 83 of the SR. Doc. 20150629 Art83_03 Impact of changes on the Pension Contribution Rate Items Remark Change breakdown 2013 assessment   10.9 - RDR - Assum. 2014 but RDR 2013 -0.8 - GSG - Assum. 2014 but GSG 2013 0.3 - Life table - Assumptions 2014 but Mortality 2013 -0.1 - Invalidity table - Assum. 2014 but Invalidity 2013 - Turnover - Assum. 2014 but Turnover 2013 0.1 - Other assumptions and population  2013 other assumptions and population -0.2 2014 assessment 10.1 2013 PSEO CR has been applied by virtue of Council regulation 1201/2014. A 12 y moving average for both the RDR (2.4%) and GSG (-0.3%), due to the temporary legal vacuum between 1.7.2013 (relevant articles in Annex XII expired) and 31.12.2013 (new Staff regulations effective only since 1.1.2014). 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_03

WG on Article 83 of the SR. Doc. 20150629 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 2014 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_03

Any question on this document? Thank you for your attention 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_03