1. 2006 update of the 2004 actuarial assessment of the EU pension scheme
Art83 WG Meeting
2006 update of the 2004 actuarial assessment of the EU pension scheme
Provisional results
Item 8 of the Agenda
Art83WG / Doc Art83_08

2. Timing of the actuarial assessment Contribution rate Computation
Content
Timing of the actuarial assessment
Contribution rate
Computation
Reference population
Actuarial assumptions
Sensitivity analysis
Technical implementation of Annex XII
Art83WG / Doc Art83_08

3. Timing of the actuarial assessment
Art83WG / Doc Art83_08

4. Contribution rate from the 1st July 2006
Art83WG / Doc Art83_08

5. Change on the calculated rate
The 2006 contribution rate (10.7%) is higher (+0.4%) than the 2005 rate (10.3%).
Mainly explained by:
Real Discount Rate (RDR) decrease (-0.2%)
General Salary Growth (GSG) increase (+0.1%)
Art83WG / Doc Art83_08

6. The contribution rate is computed as the actuarial value of
Contribution rate (computation)
The contribution rate is computed as the actuarial value of
the service cost (847 million €) divided by the total of
the staff annual basic salaries (2 628 million €)
The total service cost is the sum of:
Service cost for retirement (710 million €)
Service cost for invalidity (94 million €)
Service cost for death (43 million €)
Art83WG / Doc Art83_08

7. Contribution rate by type of service cost
Art83WG / Doc Art83_08

8. Summary of main actuarial assumptions
The provisional assessment was based in a population of contributing members at
Discount rate = 3.6%
General salary growth (GSG) = 0.3%
Individual salary progression (ISP) = “2005 ISP v2 table” (weighted rate at = 2.1%)
Art83WG / Doc Art83_08

9. Reference population
Art83WG / Doc Art83_08

10. Reference population by Institutions and Agencies
Art83WG / Doc Art83_08

11. Real discount rate
Art83WG / Doc Art83_08

12. General Salary Growth (GSG)
Art83WG / Doc Art83_08

13. Sensitivity analysis (Discount rate)
Art83WG / Doc Art83_08

14. Sensitivity analysis (GSG)
Art83WG / Doc Art83_08

15. Sensitivity analysis (ISP)
Art83WG / Doc Art83_08

16. 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 Eurocontrol, JPAS and EPO
Eurostat is assisted by Ernst & Young Actuaires-Conseils / Paris
Ernst & Young will examine the final contribution rate that Eurostat will calculate by the 1st September 2006
Art83WG / Doc Art83_08

17. Thank you for your attention
The Working Group is asked to express its views on the issues discussed in this paper.
Thank you for your attention
Art83WG / Doc Art83_08