1. 2005 update of the 2004 actuarial assessment of the EU pension scheme
Art83 WG Meeting
2005 update of the 2004 actuarial assessment of the EU pension scheme
Final results
Item 3 of the Agenda
Art83WG / Doc Art83_03

2. Timing of the actuarial assessment Contribution rate
Content
Timing of the actuarial assessment
Contribution rate
Changes on computation
Summary of main parameters
Implementation and use
Art83WG / Doc Art83_03

3. Timing of the actuarial assessment
Art83WG / Doc Art83_03

4. Officials’ contribution rate from the 1st July 2005
(graph)
Art83WG / Doc Art83_03

5. 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 (721 millions €) divided by
the total of the staff annual basic salaries (2 343 million €).
The total service cost is the sum of:
Service cost for retirement (595 million €).
Service cost for invalidity (88 million €).
Service cost for death (38 million €).
Art83WG / Doc Art83_03

6. Change on computation compared to 2005 provisional assessment
No mayor changes exist between the 2005 provisional and final actuarial assessments
The ISP table was improved according to recommendations of the June 2005 Art83 WG (2005 ISP v1 table)
The new total service cost was 721 millions € (724 millions € in the provisional assessment)
The calculated contribution rate remained the same (10.3%)
Art83WG / Doc Art83_03

7. Summary of main actuarial assumptions
The assessment was based in a population of contributing members at
Discount rate = 3.8%
General salary growth (GSG) = 0.2%
Individual salary progression (ISP) = “2005 ISP v1 table” (weighted rate at = 2.3%)
Art83WG / Doc Art83_03

8. Implementation and use
Eurostat was assisted by Ernst & Young Actuaires-Conseils / Paris on the implementation of the methodology described in the Annex XII
Ernst & Young examined the final contribution rate calculated by Eurostat
The Commission proposal on the official pension rate to ensure the balance of the pension scheme was based in the Eurostat report
The Council agreed on update the official contribution rate to 10.25% from the 1st July 2005
Art83WG / Doc Art83_03

9. 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_03