1. Making a successful transition!
Act 1: Public meeting
Making a successful transition!
23 September 2008

2. LHC - First congratulations !

3. Summary Health insurance - CHIS - Pension Fund - PF -
Towards a financial imbalance
Pension Fund - PF -
Decision - June 08: is CERN Council assuming its responsibilities?
Technical studies in progress
Transition to IPSAS accounting standards
Merit appraisal and recognition - MARS & LHC -
Results of the last exercise
And tomorrow, what will be the advancement budget?
General Information
5YR-2005/06 : working time, administrative circulars , long-term SLS, indexation of salaries
Appeals: salaries, pensions, contracts
Departmental meetings

4. CHIS - Reminder Long-Term Care – Sept. 07 decision daily allowance:
COUNCIL
DEC.07
Long-Term Care – Sept. 07
daily allowance:
increased
(85 → 100 CHF)
adjusted by DG (= 50% of the costs in a Swiss EMS)

5. CHIS - Reminder « We’ve f(o)und our money! » – Echo 17 Dec. 07
Creation of a fund of 93 MCHF composed of
Reserve for the long-term care scheme
Reserve for the general HIS, of which:
Variations from year to year
6 MCHF (≈ 10% of annual expenditure)
Catastrophic risk
20 MCHF (≈ 33% of annual expenditure)
Expenditure committed, but not yet reimbursed
12 MCHF (≈ 20% of annual expenditure)
Invested in two investment funds (20% equities, 80% bonds)
CHIS accounts separated from those of the Organization
Sur proposition de la Direction qui a été acceptée par les états membres, un fonds de 93 MCHF a été crée en decembre La mise en place de nouvelles règles comptables européennes mieux connues sous le nom de normes IPSAS a favorise également cette issue positive. En effet, des provisions correspondant aux engagements de l’Organisation envers le personnel doivent apparaître clairement dans ses comptes.
Pour moitie, il se compose des réserves du HIS (système général)
La création de ce fonds capitalise est une vrai bonne nouvelle. C’est la volonté de l’AP qui a été comprise et entendue par la direction et les états-membres. Il ne constitue néanmoins qu’une première étape pour garantir la pérennité de notre système d’assurance maladie. En effet, les engagements de l’Organisation envers son personnel concernant l’assurance maladie se chiffrent a environs 1200 MCHF.

6. Actuarial review 2007: financial imbalance from 2010
CHIS – Financial situation
Actuarial review 2007: financial imbalance from 2010
2010
Latest news
1st semester 2008
negative balance (expenditure: +10%)
imbalance foreseen from 2008

7. CHIS – Financial situation
Imbalance : what to do for the time being?
Strong annual fluctuations are nothing new
Reserve funds are foreseen to deal with the situation (+10% ≈ 6 MCHF)
CHIS will be a topic of the next 5YR

8. CHIS – Ensure the future of our scheme
1st step achieved : creation of a capitalized fund – 93 MCHF
5YR–2010
Obtain the implementation of two recommendations by the actuary
Smooth the increase in costs due to ageing by an annual increase of 1% of the contribution rate (Organization + contributing members):
10%  10,1%  10,2% …
If medical inflation increases more rapidly than salaries and pensions, the differential should be added to the increase in contribution rate
CHIS Board : subgroup “Future of the Scheme”
Your opinion interests us : SA survey - Oct. 08
Reminder : CHIS = Mutual benefit and support scheme
For each franc spent, half is paid by the contributing member
Making savings for the scheme means making savings for ourselves !

9. Summary Health insurance - CHIS - Pension Fund - PF -
Towards a financial imbalance
Pension Fund - PF -
Decision - June 08: is CERN Council assuming its responsibilities?
Technical studies in progress
Transistion to IPSAS accoutning standards
Merit appraisal and recognition - MARS & LHC -
Results of the last exercise
And tomorrow, which advancement budget?
General information
5YR 2005/06: working time, administrative circulars, long-term SLS, indexation of salaries
Appeals: salaries, pensions, contracts
Departmental meetings

10. Pensions – Balance of our Fund

11. Pensions – Balance of our Fund
Actuarial review 2007 : which recommendation by the GBPF?
decision
COUNCIL
2002
CERN
pensioners
Pensioners +
STAFF
ECHO n°52

12. Pensions – Balance of our Fund

13. Taxation of pensions – current situation
Active
members
CERN
Markets
Pension Fund
Paid pensions
Residence 1 FR
55% 2 CH
34% 3 DE 3% 4 UK
1.5%
Beneficiaries
Tax

14. Taxation of pensions – for tomorrow?
Active
members
CERN
Markets
Pension Fund
Internal
Taxation
Paid pensions
Residence 1 FR
55% 2 CH
34% 3 DE 3% 4 UK
1.5%
Beneficiaries
Tax X

15. GBPF – WG2 : funding policy and principles
Pensions – Technical studies in progress
GBPF – WG2 : funding policy and principles
recommandation
PFGB
MID 09
Objective: 125% in 20 years
SA:
only realistic scenario =
Internal taxation

16. Summary Transition to IPSAS accounting standards
Health insurance - CHIS -
Towards a financial imbalance
Pension Fund - PF -
Decision - June 08: is CERN Council assuming its responsibilities?
Technical studies in progress
Transition to IPSAS accounting standards
Merit appraisal and recognition - MARS & LHC -
Results of the last exercise
And tomorrow, which advancement budget?
General information
5YR 2005/06: working time, administrative circulars, long-term SLS, indexation of salaries
Appeals: salaries, pensions, contracts
Departmental meetings

17. IPSAS – new main budget items related to the staff
Paid leave
The accumulated present value to be paid in the future to staff members when they will be absent for annual, saved or compensation leave reasons
Post-employment benefits
Estimated actuarial liability towards employed and retired members of the CERN personnel
CERN/2787
CERN/2787
provision

18. Summary Merit appraisal and recognition - MARS & LHC -
Health insurance - CHIS -
Towards a financial imbalance
Pension Fund - PF -
Decision - June 08: is CERN Council assuming its responsibilities?
Technical studies in progress
Transition to IPSAS accounting standards
Merit appraisal and recognition - MARS & LHC -
Results of last exercise
And tomorrow, what will be the advancement budget?
General information
5YR 2005/06: working time, administrative circulars, long-term SLS, indexation of salaries
Appeals: salaries, pensions, contracts
Departmental meetings

19. MARS 2008 - results / career path

20. MARS 2008 – steps / population
guidelines
CCP-2008/4
grouping

21. LHC Oct. 08 – results / career path
Reminder: exercise without SCC guidelines

22. 2007 & steps / population
MARS 08 + LHC Oct. 08 ≈
Exercise 2007

23. Merit recognition – 2 years later…
MARS 2008
Global use of Advancement & Financial Awards budgets
Use of budgets per career path
Percentage of « periodic only »
LHC Oct. 08
Global use of Advancement & Financial Awards budgets
Use of budgets per career path: bias observed
: objectives reached with difficulty thanks to additional budget in 2007 (5YR-05) and 2008 (LHC)
Without additional budget, this shortfall must be managed
From 2009 : Additional budget is needed so that the merit of each person can be adequately recognized X

24. Summary General information Health insurance - CHIS -
Towards a financial imbalance
Pension Fund - PF -
Decision - June 08: is CERN Council assuming its responsibilities?
Technical studies in progress
Transition to IPSAS accounting standards
Merit appraisal and recognition - MARS & LHC -
Results of last exercise
And tomorrow, which advancement budget?
General information
5YR-2005/06 : working time, administrative circulars, long-term SLS, indexation of salaries
Appeals : salaries, pensions, contracts
Departmental meetings

25. Administrative Circulars
What progress has been made?
AC 4 : Unemployment insurance
AC 12A, AC 12B : Education fees
AC 26 : Recognition of merit of Staff members
AC 30 : Indemnities and reimbursements on arrival/departure
Working time
Overtime, stand-by duty, shift work
Chap.III : approved by CERN Council in June 2008
AC : being drafted

26. Saved Leave Scheme
Short-term Saved Leave: « STSL » in existence since Jan. 08
Ceiling on 30 September
Annual leave: 30 days
STSL : 22 j
Tacit renewal
« Participation in the short-term saved leave scheme may be modified at the request of the staff member or of his hierarchy at the end of the 12 months subject to a two-month notice period . »
Long-term SLS : early retirement
The DG had promised to study the conditions for this new system before the end of 2007, with implementation in 2008, if an agreement is reached at SCC.
With no agreement reached, discussions will start up again with the next Management.
52 days max. on « annual leave » account

27. Indexation of salaries – Evolution since 2001
+4,2%
+3,2%
RNM = average movements of the real net salaries of civil servants
Long-term hypothetical indexation = +2% / yr
RNM < 0
RNM > 0
CERN salary index = 1,6% / year

28. Indexation des salaires – au 1er janvier 2009
decision
COUNCIL
DEC.08
Calculation method :
Approved by Council - 5YR 2000 & 5YR 2005
Clear objective: maintain between two 5YR the existing ratio between the salaries of CERN and our comparators
Reminder of difference 5YR 2005 : -20% on average
Has always been applied since 2001
Year of start-up of LHC : what message does this give to the staff ?
Legally : it is a guide
Our position :
CERN must remain a centre of excellence !
The method must be applied to avoid a double penalty !
If necessary, we will have to go and get our indexation !

29. Appeals – on three topics
Salaries (5YR-2005), Contract policy, Pensions
judgement
ILOAT
FEB.09
details
Complaint
CERN reply
Rejoinder of complainant
CERN surrejoinder
available from your delegates

30. Nursery School – Canteen Project
Opening of the new canteen:
beginning Oct.08
Project approved – Sept.07
Ajouter photo batiment
Photos – 22 sep. 2008

31. Summary Departmental meetings Health Insurance - CHIS -
Towards a financial imbalance
Pension Fund - PF -
Decision - June 08: is CERN Council assuming its responsibilities?
Technical studies in progress
Transition to IPSAS accounting standards
Merit appraisal and recognition - MARS & LHC -
Results of last exercise
And tomorrow, which advancement budget?
General information
5YR 2005/06: working time, administrative circulaires, long-term SLS, salary indexation
Recours : salaires, pensions, contrats
Departmental meetings

32. Departmental meetings – ACT II
Timetable
Date
Time
Place
Monday 29 Sep.
10h00
IT auditorium/bldg. 31
Monday 29 Sep.
15h00
AT auditorium/bldg. 30
Tuesday 30 Sep.
09h00
AB auditorium/bldg. 864
Thursday 02 Oct.
09h00
Council chamber/bldg. 503
Friday 03 Oct.
09h00
TH auditorium/bldg. 4

33. Departmental meetings – have your say
First part (15 mins)
5YR
importance of a 5YR (examples 1995, 2000, 2005)
subjects to deal with
timetable
Prepare the transition with the next DG
your opinion and priorities
present the Staff Association survey - Oct. 08
General information
contract policy
administrative circulars
latest news
Second part (45 mins)
Discussion (including follow-up of general meeting)

34. In short – make a successful transition…
Social security
Health insurance: towards a financial imbalance
Pension Fund: funding ratio objective of 125% in 20 years
scenario “internal taxation of pensions”?
IPSAS: currently shows the long-term commitments of the Member States to the staff
Merit appraisal and recognition
2007 and 2008 have shown that the MARS budget must be increased
General information
Working time: administrative circulars
Flexi-time: long-term SLS
Salaries: 2009 indexation
Appeals: salaries, pensions, contracts
Nursery school: opening of a Canteen
Act 2: Departmental meetings
Your opinion, your priorities: prepare together the transition
5YR-2010
MID 2009
EARLY 2009
END 2008
2009
DEC. 2008
FEB. 2009
OCT. 2008
NEXT WEEK

35. Early departure - Congratulations !