WG on Article 83 of the SR. Doc. 20160627_Art83WG_06 Actuarial assessment of the PSEO at 31.12.2015 - Provisional results - Item 6.2 of the agenda 27.06.2016 WG on Article 83 of the SR. Doc. 20160627_Art83WG_06

WG on Article 83 of the SR. Doc. 20160627_Art83WG_06 Elements to be considered for the 2016 pension contribution rate adjustment Pension contribution rates (Period: July 2015 – June 2016): Calculated (not applied): 10.2% Applied: 10.1% Calculated rate for the period July 2016 – June 2017: 9.8% 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. 27.06.2016 WG on Article 83 of the SR. Doc. 20160627_Art83WG_06

WG on Article 83 of the SR. Doc. 20160627_Art83WG_06 Computation of the pension contribution rate The staff contribution rate is computed as one third of the actuarial value of: the service cost (1 172.7 million €), divided by the staff annual basic salaries (4 316.9 million €) The total service cost is the sum of: Service cost for retirement (1 176.2 million €) Service cost for invalidity (55.5 million €) Service cost for death (41.0 million €) 27.06.2016 WG on Article 83 of the SR. Doc. 20160627_Art83WG_06

WG on Article 83 of the SR. Doc. 20160627_Art83WG_06 Change of the calculated pension contribution rate The 2016 calculated pension contribution rate (9.8%) is lower than the 2015 calculated rate (10.2%) and the 2015 applied rate (10.1%) The -0.4% decrease is due to the combined effect of the evolution of the PSEO contributing members population , General Salary Growth and Real Discount Rate. 27.06.2016 WG on Article 83 of the SR. Doc. 20160627_Art83WG_06

Contribution rate updates from 2004 27.06.2016 WG on Article 83 of the SR. Doc. 20160627_Art83WG_06

WG on Article 83 of the SR. Doc. 20160627_Art83WG_06       Summary of main inputs used in calculations This provisional assessment is based on a population of 60 619 contributing members at 31.12.2015 Real discount rate (RDR) = 2.9% (2015: 2.7%) General salary growth (GSG) = -0.1% (2015: -0.2%) Individual Salary Progression (ISP) = “2014 ISP table” More explanations about assumptions used, provided in document «20160627_Art83WG_05 AssumpAssessment2016» 27.06.2016 WG on Article 83 of the SR. Doc. 20160627_Art83WG_06

PSEO Population (contributing members) by Institution 27.06.2016 WG on Article 83 of the SR. Doc. 20160627_Art83WG_06

Reference Population by age and sex at 31.12.2015 27.06.2016 WG on Article 83 of the SR. Doc. 20160627_Art83WG_06

WG on Article 83 of the SR. Doc. 20160627_Art83WG_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 2016. These updates will be implemented in case of justified reasons. 27.06.2016 WG on Article 83 of the SR. Doc. 20160627_Art83WG_06

The Working Group is asked to express its views on this document Thank you for your attention 27.06.2016 WG on Article 83 of the SR. Doc. 20160627_Art83WG_06