1. Long-term PSEO Expenditure
Item 8 of the agenda
WG on Article 83 of the SR. Doc Art83_09

2. WG on Article 83 of the SR. Doc. 20160627 Art83_09
Presentation Outline
PSEO main features
2013 SR Reform
Projection methodology
Population projection
Assumptions involved
WG on Article 83 of the SR. Doc Art83_09

3. WG on Article 83 of the SR. Doc. 20160627 Art83_09
The PSEO
PSEO acronym
PSEO legal basis
Entities involved
WG on Article 83 of the SR. Doc Art83_09

4. Population by Institution
WG on Article 83 of the SR. Doc Art83_09

5. WG on Article 83 of the SR. Doc. 20160627 Art83_09
PSEO main features
PSEO is a defined benefit pension plan.
The payment of pension benefits is jointly guaranteed by the EU Member States.
PSEO is not funded
PSEO is not a PAY-As-You-Go system
WG on Article 83 of the SR. Doc Art83_09

6. WG on Article 83 of the SR. Doc. 20160627 Art83_09
The PSEO assessment
PSEO is assessed every year
Yearly PCR required to ensure the PSEO balance
Shared contributions
WG on Article 83 of the SR. Doc Art83_09

7. WG on Article 83 of the SR. Doc. 20160627 Art83_09
Literature
Limitations of projections exercises
Concrete purpose of a projection
The Component Method
Assessment the need of complex assumptions
WG on Article 83 of the SR. Doc Art83_09

8. WG on Article 83 of the SR. Doc. 20160627 Art83_09
Staff Regulations
2004 & 2013 Reforms
Differences and analogies between this two big reforms
WG on Article 83 of the SR. Doc Art83_09

9. Key pension parameters affected by the 2013 SR reform
Pensionable ages
Accrual Rates
Salary Grids of AST-SC
ISP
WG on Article 83 of the SR. Doc Art83_09

10. WG on Article 83 of the SR. Doc. 20160627 Art83_09
Timeframe
Length of the projection period
Rationale for choice
WG on Article 83 of the SR. Doc Art83_09

11. Approach for capturing expected savings
Current Scenario
Test Scenario
WG on Article 83 of the SR. Doc Art83_09

12. Demographic Assumptions: Population
Population at start of the projection
PaP: Population Aggregates for Projection
Staff levy
AST-SC
WG on Article 83 of the SR. Doc Art83_09

13. WG on Article 83 of the SR. Doc. 20160627 Art83_09
Population By Status
WG on Article 83 of the SR. Doc Art83_09

14. Demographic Assumptions: Population transitions
Open-group approach
Yearly events and population transitions
New entrants formula
WG on Article 83 of the SR. Doc Art83_09

15. Demographic Assumptions: Active Population
Active Population stable, but
Staff Levy
New Function Group
WG on Article 83 of the SR. Doc Art83_09

16. Demographic Assumptions: Retirement Tables
Retirement Probabilities
Legal perspective
Behavioural perspective
WG on Article 83 of the SR. Doc Art83_09

17. Other Demographic Assumptions
Life Tables
Invalidity Tables
Deferral Tables
Widow Rates
Orphan Rates
Turnover Rates
Age of New Entrants
WG on Article 83 of the SR. Doc Art83_09

18. Economic Assumptions: GSG
General Salary Growth
30y moving average
Salary freezes in 2011 & 2014
WG on Article 83 of the SR. Doc Art83_09

19. Economic Assumptions: ISP
Individual Salary Progression: definition
Legal provisions: Annex IB
Weaker career perspective
Capped careers
WG on Article 83 of the SR. Doc Art83_09

20. Economic Assumptions: BS at recruitment
Basic Salary at Recruitment
Effect of salary freezes
New lower BS for AST-SC
WG on Article 83 of the SR. Doc Art83_09

21. Economic Assumptions:Accrual Rate
Three different accrual rates in the system
WG on Article 83 of the SR. Doc Art83_09

22. Economic Assumptions: Inflation Rate
Comparison at constant prices
WG on Article 83 of the SR. Doc Art83_09

23. WG on Article 83 of the SR. Doc. 20160627 Art83_09
2014 Staff by Category
WG on Article 83 of the SR. Doc Art83_09

24. Any question on this document?
Thank you for your attention
WG on Article 83 of the SR. Doc Art83_09