Agenda No.10.2 Updated Extra-EU methodology Manual Doc.A6465/14/60rev2 Agenda No.10.2 Updated Extra-EU methodology Manual Working Group on Articles A64 and A65 of the Staff Regulations Meeting in Luxembourg 28+29 March 2017

Content of this presentation 1-Introduction 2-Modifications agreed and introduced Page 17, point 2.3, formulas Page 37, point 10.6, smoothing impact paragraph Page 75 & 76, Annex 11 3-Further improvements now proposed 4-Conclusion

1-Introduction: As agreed, following WG art 64 / 65 hold in March 2016 a new updated Extra-EU Methodology was circulated. Shortly afterwards, comments were received to correct minor typing mistakes. The methodology was corrected and final text was published in July 2016. Doc.A6465/14/60 rev2 For information, the changes are shown here.

Modification: Page 17, point 2.3, formulas Previous version New version Correction on the Laspeyres-type index formula.

Modification: Page 17, point 2.3, formulas Previous version New version Correction of the Paasche-type index formula

Modification: Page 37, point 10 Modification: Page 37, point 10.6 ,smoothing impact of a new survey results: Previous version : The 2009 meeting of the Article 64 Working Group approved the principle of smoothing PPPs. The following rule is now applied in producing the results package: if the global PPP from a new place to-place survey is different from the global PPP of the old survey updated to the same date, then the impact is smoothed (ie. delayed); the balance is spread over the available period (eg. between 1 to 2% per month). The normal available period is adjusted as followed: -If the difference between the PPPs is < or = to 5%, the new PPP take effect immediately, -If the difference is > to 5% but < or = to 12%, the impact is smoothed over 6 months -If the difference is > to 12% but < or = to 24%, the impact is smoothed over 12 months, -If the difference is > to 24% but < or + to 36% the impact is smoothed over 18 months, -In the case the difference is higher than 36%, which should hardly ever happen, the impact won’t be smoothed for a period greater than 18 months.

New, clarified presentation :

Modification: Page 75 & 76, Annex 11 Calculation steps establishing a correction coefficient for a duty station

Modification: Page 75 & 76, Annex 11 Calculation steps for updating a correction coefficient for a duty station.

Thank you for your attention!