1. Eurostat report of 1 September 2013
Actuarial assessment of the PSEO at
Eurostat report of 1 September 2013
Item 4.1 of the agenda
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Contribution rate to apply from the 1st July 2012
+ 1.0%
11.6%
-1.00%
10.3%
(3)
The calculation of the staff contribution rate is based on the PSEO population at
12.60%
10.60%
(1)
As to art.2.1 in Annex XII of the SR, adjustments to the pension contribution rates are capped
to 1%.
(2)
Rate applied since 1st July 2011, having the Council not yet adopted the 11% pension
contribution rate effective from 1st July 2011 proposed by the Commission
Contribution rate
since
Upper bound of the
gap
Positive gap to
update the rate (1)
Negative gap to
Lower bound of
the gap (1)
Calculated
contribution rate
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3. WG on Article 83 of the SR. Doc. 20140627 Art83_03
Yearly change in the calculated rate for pension
The contribution rate calculated in 2013 (10.3%) was higher (+0.4%) than the one calculated in 2012 (9.9%)
The 0.4% increase is mainly due to changes in:
Real discount rate
Life Table
Population
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Contribution rates from 2004
The 2013 calculated CR effective from , has become 10.3% following the 0.8% increase of remunerations and pensions effective from 1 July 2012, as from Regulation (EU) N° 423/2014 of 16 April 2014 of the European Parliament and Council.
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2013 Computation of the Contribution Rate
The contribution rate was computed as the actuarial value of:
the service cost (1 166 million €) divided by
the staff annual basic salaries (3 755 million €)
The total service cost was the sum of:
Service cost for retirement ( million €)
Service cost for invalidity (46.3 million €)
Service cost for death (40.2 million €)
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Summary of main actuarial assumptions
The provisional assessment was based on a population of contributing members at
Real discount rate (RDR) = 2.7% (it was 2.6% in 2011)
General salary growth (GSG) = -0.2% (same as in 2012)
Individual salary progression (ISP) = “2012 ISP table”
ISP Group
Average 1
Officials recruited before
1.6% 2
Officials recruited from onwards
2.0% 3
Temporary Agent 4
Contract Agent
1.0% 5
Parliamentary Assistant
0.0%
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Reference population by Institution and Agency
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Reference population at by age
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Impact of changes on the pension contribution rate
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Technical implementation of the Annex XII
Technical questions were dealt with by Eurostat in cooperation with national experts (Article 83 Working Group)
Eurostat exchanged relevant information with actuaries from ISRP, Eurocontrol and EPO
Eurostat was assisted by Ernst & Young Actuaires-Conseils / Paris
Ernst & Young confirmed the final contribution rate presented in the Eurostat Report of 1st September 2013
WG on Article 83 of the SR. Doc Art83_03

11. Any question on this document?
Thank you for your attention
WG on Article 83 of the SR. Doc Art83_03