WG on Article 83 of the SR. Doc. 20150629 Art83_06 Actuarial assessment of the PSEO at 31.12.2014 - Provisional results - Item 6.2 of the agenda 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_06

WG on Article 83 of the SR. Doc. 20150629 Art83_06 Elements to be considered for the 2015 pension contribution rate adjustment Salaries frozen in 2011, 2013 and 2014, plus 2012 salary adjusted by 0.8% (against 1.7% calculated): impact on the GSG computation The pension contribution rates were adjusted to: 11.0% with effect from 1st July 2011, 10.0% with effect from 1st July 2012 and 10.9% with effect from 1st July 2013 by virtue of Council Regulation 1201/2014 Art. 83.a (4): if the difference between the new and the current contribution rates is lower than 0.25 points, no update will be implemented. 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_06

WG on Article 83 of the SR. Doc. 20150629 Art83_06 STAFF PCR UPDATE (PROVISIONAL CALCULATION) 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_06

WG on Article 83 of the SR. Doc. 20150629 Art83_06 Computation of the pension contribution rate The staff contribution rate is computed as one third of the actuarial value of: the service cost (1 256.1 million €), divided by the staff annual basic salaries (4 123.7 million €) The total service cost is the sum of: Service cost for retirement (1 164.8 million €) Service cost for invalidity (52.5 million €) Service cost for death (38.8 million €) 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_06

WG on Article 83 of the SR. Doc. 20150629 Art83_06 Change of the calculated pension contribution rate The 2015 calculated pension contribution rate (10.2%) is slightly higher (+0.1%) than the 2014 calculated rate (10.1%) The 0.1% increase has been originated by the evolution of the PSEO contributing members population 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_06

Contribution rate updates from 2004 26.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_06

WG on Article 83 of the SR. Doc. 20150629 Art83_06       Summary of main inputs used in calculations This provisional assessment is based on a population of 59 375 contributing members at 31.12.2014 Real discount rate (RDR) = 2.7% (same as for the 2014 assessment) General salary growth (GSG) = -0.2% (same as for the 2014 assessment) Individual Salary Progression (ISP) = “2014 ISP table” More explanations about assumptions used, provided in document «20150629 Art83_05» 26.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_06

PSEO Population (contributing members) by Institution 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_06

Reference Population by age and sex at 31.12.2014 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_06

WG on Article 83 of the SR. Doc. 20150629 Art83_06 Technical implementation of the Annex XII Technical questions are dealt with by Eurostat in cooperation with national experts (Article 83 Working Group) Eurostat exchange relevant information with actuaries from ISRP, Eurocontrol and EPO Eurostat is assisted by Ernst & Young Actuaires-Conseils / Paris Ernst & Young checked this provisional calculation of the pension contribution rate and will examine any update implemented before the 1st September 2015. These updates will be implemented in case of justified reasons. 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_06

The Working Group is asked to express its views on this document Thank you for your attention 29.06.2015 WG on Article 83 of the SR. Doc. 20150629 Art83_06