Public meetings – 7 th to 14 th June 2011 Jan.- June 2011: CONCERTATION brutally PUT TO THE TEST!

2 Public meetings – 7 th to 14 th June 2011 Concertation in danger Pensions: 2 nd package of proposals Pensions: 2 nd package of proposals Pension conditions for new recruits Pension conditions for new recruits Transition measures for future retirees (=current staff) Transition measures for future retirees (=current staff) Concertation process flouted Concertation process flouted How to obtain respect of the concertation process? How to obtain respect of the concertation process? 15 years of mutual respect since creation of TREF 15 years of mutual respect since creation of TREF We must act now! We must act now! We must defend the concertation process at CERN We must defend the concertation process at CERN Referendum: it is time for staff to take a stand Referendum: it is time for staff to take a stand

3 Public meetings – 7 th to 14 th June 2011 Concertation in danger Pensions: 2 nd package of proposals Pensions: 2 nd package of proposals Pension conditions for new recruits Pension conditions for new recruits Transition measures for future retirees (=current staff) Transition measures for future retirees (=current staff) Concertation process flouted Concertation process flouted How to obtain respect of the concertation process? How to obtain respect of the concertation process? 15 years of mutual respect since creation of TREF 15 years of mutual respect since creation of TREF We must act now! We must act now! We must defend the concertation process at CERN We must defend the concertation process at CERN Referendum: it is time for staff to take a stand Referendum: it is time for staff to take a stand

4 Public meetings – 7 th to 14 th June 2011 nº ProposalOrg.Currentstaff Future staff CurrentpensionerFuturepensioner 1 Increase contribution rate - from 30,88% to 34% XX 2 Freeze pensions until individual purchasing power loss reaches 8% X 3 Add Special Contributions - CERN: 60 MCHF/yr until full funding - ESO: 3 (1.3) MCHF/yr until full funding X 1st package - decided in Dec and implemented as of Jan nd package - decision in June 2011 for implementation in Jan. 2012nº ProposalOrg.Currentstaff Future staff CurrentpensionerFuturepensioner4 Modify benefits package (new staff) X 5 Introduce transition measures - relating to indexation of pensions X Status of Pensions issue Staff Council position Remains coherent with its support given to such an increase in Under-indexation: reasonable mechanism - Welcomes preservation of current 8% ceiling Asks for a CERN Council resolution Staff Council position Unacceptable Dec : 91.8% of Staff supported the Staff Council position June 2011 : Staff Council needs the support of the Staff

5 Public meetings – 7 th to 14 th June 2011 Concertation in danger Pensions: 2 nd package of proposals Pensions: 2 nd package of proposals Pension conditions for new recruits Pension conditions for new recruits Transition measures for future retirees (=current staff) Transition measures for future retirees (=current staff) Concertation process flouted Concertation process flouted How to obtain respect of the concertation process? How to obtain respect of the concertation process? 15 years of mutual respect since creation of TREF 15 years of mutual respect since creation of TREF We must act now! We must act now! We must defend the concertation process at CERN We must defend the concertation process at CERN Referendum: it is time for staff to take a stand Referendum: it is time for staff to take a stand

6 Public meetings – 7 th to 14 th June 2011 Parameters Current Staff Future Staff – as of 1/1/2012 Mgt proposalsSA proposals Retirement age65yr67yr67yr but no reduction factor after 65 Contrib. sharing1/3;2/340%;60%1/3;2/3 (40%;60%)* Contrib. rate34%28.33%30.6% (34%)* Contrib. Staff11.33% 10.2% (+ 3.4%)* Contrib. CERN22.67%17%20.4% Accrual rate2.0% i.e. 35yr 1.85% i.e. 37yr + 10 months 1.89% i.e. 37 yr Article related to Acquired rights AppliesDoes not applyApplies Pension levelLast basic salary Average of last 3yr salary positions Average of last 3yr salary positions Funding ratio back to 100% To be evaluated, but around 2033 Indexation of pension Annex C Funding ratio x cost-of- living Full cost-of-living index No Consensus in SCC on June 6 th Arbitration process in progress Awaiting DG decision Pension Fund for new recruits * Possibility for Staff to buy extra years of contribution (+10%)

7 Public meetings – 7 th to 14 th June 2011 Pension fund for new recruits Package for newcomers is unacceptable !  Future Staff = FUTURE of CERN

8 Public meetings – 7 th to 14 th June 2011 Concertation in danger Pensions: 2 nd package of proposals Pensions: 2 nd package of proposals Pension conditions for new recruits Pension conditions for new recruits Transition measures for future retirees (=current staff) Transition measures for future retirees (=current staff) Concertation process flouted Concertation process flouted How to obtain respect of the concertation process? How to obtain respect of the concertation process? 15 years of mutual respect since creation of TREF 15 years of mutual respect since creation of TREF We must act now! We must act now! We must defend the concertation process at CERN We must defend the concertation process at CERN Referendum: it is time for staff to take a stand Referendum: it is time for staff to take a stand

9 Public meetings – 7 th to 14 th June 2011 Transition measures for future retirees Purchasing power loss 8% Freeze Staff Association proposal: Phasing out Purchasing power loss 8% Freeze Year of departure Full COL Management proposal: Management proposal is unacceptable It is a double penalty for current staff: increase in contributions while maintaining under-indexation mechanism It is a double penalty for current staff: increase in contributions while maintaining under-indexation mechanism It breaks the agreement reached on 1 st package by perpetuating the principle of purchasing power loss (up to 8%) for active staff It breaks the agreement reached on 1 st package by perpetuating the principle of purchasing power loss (up to 8%) for active staff Year of departure Phasing out Under-indexation (up to 8% of ppl)

10 Public meetings – 7 th to 14 th June 2011 Concertation in danger Pensions: 2 nd package of proposals Pensions: 2 nd package of proposals Pension conditions for new recruits Pension conditions for new recruits Transition measures for future retirees (=current staff) Transition measures for future retirees (=current staff) Concertation process flouted Concertation process flouted How to obtain respect of the concertation process? How to obtain respect of the concertation process? 15 years of mutual respect since creation of TREF 15 years of mutual respect since creation of TREF We must act now! We must act now! We must defend the concertation process at CERN We must defend the concertation process at CERN Referendum: it is time for staff to take a stand Referendum: it is time for staff to take a stand

11 Public meetings – 7 th to 14 th June 2011 Concertation process flouted CERN Council set up an advisory group – Dec No representative of Staff/Pensioners No representative of Staff/Pensioners Short circuit the PFGB (in contradiction with CERN PF governance of 2007) Short circuit the PFGB (in contradiction with CERN PF governance of 2007) Had given an inflexible mandate to the President of SCC Had given an inflexible mandate to the President of SCC SCC/TREF were prevented from playing their role –Jan. - June 2011 Almost no room for concertation Almost no room for concertation No willingness to reach a consensus No willingness to reach a consensus Staff Association was hindered in presenting its proposals Staff Association was hindered in presenting its proposals Impact of proposals on the PF balance appears to be of low importance Impact of proposals on the PF balance appears to be of low importance PFGB consulted at a very late stage PFGB consulted at a very late stage Diktat from Member States makes a mockery of the concertation process Staff voice was finally ignored Staff voice was finally ignored Consultation-like process Consultation-like process

12 Public meetings – 7 th to 14 th June 2011 Concertation in danger Pensions: 2 nd package of proposals Pensions: 2 nd package of proposals Pension conditions for new recruits Pension conditions for new recruits Transition measures for future retirees (=current staff) Transition measures for future retirees (=current staff) Concertation process flouted Concertation process flouted How to obtain respect of the concertation process? How to obtain respect of the concertation process? 15 years of mutual respect since creation of TREF 15 years of mutual respect since creation of TREF We must act now! We must act now! We must defend the concertation process at CERN We must defend the concertation process at CERN Referendum: it is time for staff to take a stand Referendum: it is time for staff to take a stand

13 Public meetings – 7 th to 14 th June 2011 Obtaining respect of the voice of the Staff 1994: Staff sit-in to prevent Finance Committee from holding its session in the Council Chamber MOVIE

14 Public meetings – 7 th to 14 th June 2011 Concertation: fifteen years of mutual respect 1994 Creation of TREF 1994 Creation of TREF : Employment conditions : Employment conditions Management, Member States and Staff Association were able to build solutions together Some examples: 5YR : LTC, family allowances CHIS: a first step towards consolidation Pensions 2010 Voluntary programmes: RSL, PRP, Part-Time : concertation process worked quite well : concertation process worked quite well

15 Public meetings – 7 th to 14 th June 2011 Concertation in danger Pensions: 2 nd package of proposals Pensions: 2 nd package of proposals Pension conditions for new recruits Pension conditions for new recruits Transition measures for future retirees (=current staff) Transition measures for future retirees (=current staff) Concertation process flouted Concertation process flouted How to obtain respect of the concertation process? How to obtain respect of the concertation process? 15 years of mutual respect since creation of TREF 15 years of mutual respect since creation of TREF We must act now! We must act now! We must defend the concertation process at CERN We must defend the concertation process at CERN Referendum: it is time for staff to take a stand Referendum: it is time for staff to take a stand

16 Public meetings – 7 th to 14 th June : Mr X ends his career after 33 years at CERN With the proposed measures for newcomers the CERN PF will be empty How did we get into this catastrophic situation? In 2011, concertation was replaced by consultation MS and CERN Management impose their solutions without prior discussion (e.g., they could stop payment of 60 MCHF/yr in 2015) Staff Association has lost its participative role and hence its specificity and identity CERN has lost its identity as the only IO where Staff and Management build proposals together We must act before it is too late

17 Public meetings – 7 th to 14 th June 2011 We must act now! We must stop this epidemic of short-termism which is invading CERN and the world We must say NO to this catastrophic scenario! Just like our colleagues in 1994, the current generation must stand up and reestablish the conditions of mutual respect in the framework of a genuine concertation process We must do this for ourselves, but also for the future generations This is a matter of extreme urgency Doing nothing will make the current attack spread like a virus and result in the deterioration of other employment conditions (next 5YR, salaries) Mass participation in our referendum is needed If nothing changes, mobilization in June is needed

18 Public meetings – 7 th to 14 th June 2011 Why a REFERENDUM? 1. For the future of CERN and its staff 5YR 2010 : CERN salaries are well below those of other IO 5YR 2010 : CERN salaries are well below those of other IO Pension is an essential employment condition Pension is an essential employment condition CERN must be able to attract the best candidates CERN must be able to attract the best candidates CERN cannot afford to propose the worst pension plan of all IO CERN cannot afford to propose the worst pension plan of all IO Sacrificing future staff = sacrificing future of CERN Sacrificing future staff = sacrificing future of CERN 2. For current active staff Transition measures = double penalty Transition measures = double penalty 3. For staff representation Concertation is under attack: all employment conditions are in great danger Concertation is under attack: all employment conditions are in great danger → For all these reasons, we need your mass support !

19 Public meetings – 7 th to 14 th June 2011Referendum

20 Public meetings – 7 th to 14 th June 2011 CERN must remain a centre of excellence on CERN must remain a centre of excellence on scientific grounds scientific grounds social grounds social grounds CERN must CERN must keep motivation of ALL staff keep motivation of ALL staff agree on a socially acceptable package agree on a socially acceptable package CERN must CERN must Respect its staff by applying the concertation process in good faith Respect its staff by applying the concertation process in good faithConclusion STAFF REFERENDUM Vote and get your colleagues to vote!

21 Public meetings – 7 th to 14 th June 2011Spares

22 Public meetings – 7 th to 14 th June 2011 March 2010: successful gathering 2000 signatures from active and retired CERN staff !

23 Public meetings – 7 th to 14 th June 2011 New indexation formula Annual variation of the Geneva consumer price index (CVI) Funding Ratio (FR) in %Adjustment <0n/azero Effective increase shall be reflected on individual loss of purchasing power (PP) account 0n/azero <100CVI x FR to a max. of 2%, where 2 = current actuarial parameter, as set out in the Actuary’s triennial report NB: once individual loss of PP = 8%, full CVI shall be granted >0>100CVI >110 for 3 or more consecutive years CVI x FRin compensation of accumulated loss of PP CVI if no (remaining) accumulated loss of PP

24 Public meetings – 7 th to 14 th June 2011 Actuarial study: impact of second package

25 Public meetings – 7 th to 14 th June 2011 CERN PF is a capitalized fund Return on investment Paid pensions Pension Fund Assets Income 140 MCHF BenefitsIndexation Staffcontribution CERNcontribution 190MCHF (target 5%) 300 MCHF 3800 MCHF MCHF Situation end 2010

26 Public meetings – 7 th to 14 th June 2011 Contributions 2011 new scheme: a two-speed Pension Fund Return on investment Paid pensions Pension Fund Assets StaffCERN Current 11.33%22.67% Current65yr-2%- 35yr StaffCERN CurrentNewCurrentNew 11.33% 22.67%17.00% Current65yr-2%- 35yr New67yr-1.85%- 37.8yr CERN 60 MCHF/yr

27 Public meetings – 7 th to 14 th June 2011 Org.When Type of pension plan Contributions Full pension Years to full pension Age limit Annual adjustment TotalEmployeeEmployer EPO Before Jan.09 DB share = 1/3+ 2/3 70%ofLast salary35yr60yrAs salaries 27.3% =9.1%+18.2% From Jan.09 Mixedshare= 1/3+ 2/3 70%ofLast salary35yr60yrAs salaries DB 21.0%=7.0%+14.0% DC 6.3%=2.1%+4.2% EIB Before Jan.09 DB share = 1/3+ 2/3 70%ofLast salary30yr60yrAs COL 30.0% =10.0%+20.0% From Jan.09 DB share = 1/3+ 2/3 70%of Average salaries of last 10 years 35yr65yrAs COL 30.0% =10.0%+20.0% WTO Before Jan.10 DB share = 1/3+ 2/3 70%ofLast salary35yr62yrAs COL 22.5% =7.5%+15.0% From Jan.10 DB share = 1/3+ 2/3 70%ofLast salary35yr65yrAs COL 23.7% =7.9%+15.8% ESA Before July.10 DB share = 1/3+ 2/3 70%ofLast salary35yr60yrAs salaries 25.1% =8.4%+16.7% From July.10 DB share =40%+60% 70%ofLast salary35yr63yrAs COL 23.3% =9.3%+14.0% EUMETSAT Before Jan.11 DB share = 1/3+ 2/3 70%ofLast salary35yr60yrAs salaries 27.0% =9.0%+18.0% From Jan.11 DB share =40%+60% 70%ofLast salary35yr63yrAs COL 23.3% =9.3%+14.0% CERN Before Jan.12 DB share = 1/3+ 2/3 70%ofLast salary35yr65yr Freeze (-8%) then as COL 34.0% =11.3%+22.7% From Jan.12 Mixed DB/DC ? share =40%+60% 70%of Average salaries of last 3 years 37.8yr67yr New Formula based on COL 28.3% =11.3%+17.0% Why are all five parameters in the red at CERN?

28 Public meetings – 7 th to 14 th June 2011 CERN ATTRACTIVENESS AND RETENTION REDUCED Which organization, CERN or ESA, would be more attractive to an engineer seeking a new job? Pensions: Salaries 20-25% higher at ESA compared to CERN When comparing the levels of the global package, and in particular the pension packages → ESA would obviously be more attractive! CERN’s attractiveness would be dramatically reduced! Org.When Type of pension plan Contributions Full pension Years to full pension Age limit Annual adjustment TotalEmployeeEmployer ESA From July.10 DB23.3%=9.3%+14.0%70%ofLast salary35yr63yrAs COL CERN From Jan.12 Mixed DB/DC ? 28.3%=11.3%+17.0%70%of Average salaries of last 3 years 37.8yr67yr New formula based on COL

29 Public meetings – 7 th to 14 th June 2011 From reason..... to politics FACT: MS try to push through their pension agenda FACT: MS try to push through their pension agenda Measures are introduced in parts: divide and conquer Measures are introduced in parts: divide and conquer After many SA requests, PFGB was included at a late stage in discussions on measures for new staff  everything pre-decided by Council.  Is this compatible with new governance of the CERN PF decided in 2007? After many SA requests, PFGB was included at a late stage in discussions on measures for new staff  everything pre-decided by Council.  Is this compatible with new governance of the CERN PF decided in 2007? Due to the lack of sufficient room for manoeuvre allowed by the MS, the SCC could not play its role and allow Staff and Management to build a solution together  Due to the lack of sufficient room for manoeuvre allowed by the MS, the SCC could not play its role and allow Staff and Management to build a solution together  breach of concertation process due to Diktat of MS TREF did not play its role as a forum of discussion. No discussion possible in March and oriented discussions in May. TREF did not play its role as a forum of discussion. No discussion possible in March and oriented discussions in May.

30 Public meetings – 7 th to 14 th June 2011 What about acquired rights? The provisions of Article III 1.02 of the Fund’s Rules, entitled “Acquired Rights”, shall not apply to new members, who shall, however, continue to enjoy the general protection afforded by international administrative law. The provisions of Article III 1.02 of the Fund’s Rules, entitled “Acquired Rights”, shall not apply to new members, who shall, however, continue to enjoy the general protection afforded by international administrative law. This means the retirement age at 67 years could be increased at any time! This means the retirement age at 67 years could be increased at any time! If a more favorable scheme were decided in the future (e.g., better accrual rate) → no way to join this new scheme. If a more favorable scheme were decided in the future (e.g., better accrual rate) → no way to join this new scheme. This is totally unacceptable and disregards the status of International Civil Servant. This is totally unacceptable and disregards the status of International Civil Servant. FICSA is kept informed and will coordinate a joint response. FICSA is kept informed and will coordinate a joint response.

31 Public meetings – 7 th to 14 th June 2011 Special contribution of 60 MCHF/yr? Not indexed  decreasing effect with time Not indexed  decreasing effect with time Compensated by savings in contribution ( points of %)  increasing effect with time Compensated by savings in contribution ( points of %)  increasing effect with time Efforts of all parties become clearly unbalanced as the special contribution is totally funded by savings in contribution as from 2038 ! Efforts of all parties become clearly unbalanced as the special contribution is totally funded by savings in contribution as from 2038 !

32 Public meetings – 7 th to 14 th June 2011 A reduced pension for the majority of new staff 60 % of staff recruited over age of % of staff recruited over age of 30 Will get a reduced pension (< 70%) Will get a reduced pension (< 70%) Voluntary scheme is a real need! Voluntary scheme is a real need! The average recruitment age is 34 yr and not 30 yr! The average recruitment age is 34 yr and not 30 yr!