1. Eurostat report of 1 September 2014
Actuarial assessment of the PSEO at
Eurostat report of 1 September 2014
Item 4 of the agenda
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2. WG on Article 83 of the SR. Doc. 20150629 Art83_03
Contribution Rate (CR) to apply from the 1st July 2014
WG on Article 83 of the SR. Doc Art83_03

3. Yearly change in the PCR
Council Regulation 1201 of 7 November 2014, sets out the PCR for 2011, 2012 and 2013.
2013 PCR was set to 10.9%, 1% higher than the one calculated in 2012 (9.9%)
The 1% increase is mainly due to changes in:
Real Discount Rate,
Life Table,
Population.
WG on Article 83 of the SR. Doc Art83_03

4. WG on Article 83 of the SR. Doc. 20150629 Art83_03
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.
WG on Article 83 of the SR. Doc Art83_03

5. WG on Article 83 of the SR. Doc. 20150629 Art83_03
Computation of the 2014 Contribution Rate
The contribution rate was computed as the actuarial value of:
the service cost ( million €) divided by
the staff annual basic salaries ( million €)
The total service cost was the sum of:
Service cost for retirement ( million €)
Service cost for invalidity (50.7 million €)
Service cost for death (37 million €)
WG on Article 83 of the SR. Doc Art83_03

6. WG on Article 83 of the SR. Doc. 20150629 Art83_03
Summary of main actuarial assumptions
The 2014 assessment was based on a population of contributing members at
Real Discount Rate (RDR) = 2.7%
General Salary Growth (GSG) = -0.2%
Individual Salary Progression (ISP) = “2013 ISP table”
Function groups
Average
AD - Administrators
1.4%
AST - Assistants
SC - Secretary / Clerks
GFI - Contract agents. Function group I
1.0%
GFII - Contract agents. Function group II
GFIII - Contract agents. Function group III
GFVI - Contract agents. Function group IV
0.8%
PA - Parliamentary assistants
0.9%
Weighted average
1.3%
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7. WG on Article 83 of the SR. Doc. 20150629 Art83_03
Reference population by Institution and Agency
Institution or Agency
Total %
European Commission
30 634
54%
31 090
53%
European Parliament
8 644
15%
9 023
Council of the European Union
3 087 5%
3 112
Court of Justice of the European Communities
1 997 4%
2 210
Court of Auditors
897 2%
946
Economic and Social Committee
756 1%
762
Committee of the Regions
545
542
Other institutions and decentralised Community agencies
10 464
18%
11 040
19%
57 024
100%
58 725
WG on Article 83 of the SR. Doc Art83_03

8. WG on Article 83 of the SR. Doc. 20150629 Art83_03
Reference population at by age
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9. WG on Article 83 of the SR. Doc. 20150629 Art83_03
Impact of changes on the Pension Contribution Rate
Items
Remark
Change breakdown
2013 assessment
10.9
- RDR
- Assum but RDR 2013
-0.8
- GSG
- Assum but GSG 2013
0.3
- Life table
- Assumptions 2014 but Mortality 2013
-0.1
- Invalidity table
- Assum but Invalidity 2013
- Turnover
- Assum but Turnover 2013
0.1
- Other assumptions and population
 2013 other assumptions and population
-0.2
2014 assessment
10.1
2013 PSEO CR has been applied by virtue of Council regulation 1201/2014.
A 12 y moving average for both the RDR (2.4%) and GSG (-0.3%), due to the temporary legal vacuum between (relevant articles in Annex XII expired) and (new Staff regulations effective only since ).
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10. WG on Article 83 of the SR. Doc. 20150629 Art83_03
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 2014
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