1. WG on Article 83 of the SR. Doc. 20150629 Art83_06
Actuarial assessment of the PSEO at
- Provisional results -
Item 6.2 of the agenda
WG on Article 83 of the SR. Doc Art83_06

2. WG on Article 83 of the SR. Doc. 20150629 Art83_06
Elements to be considered for the 2015 pension contribution rate adjustment
Salaries frozen in 2011, 2013 and 2014, plus 2012 salary adjusted by 0.8% (against 1.7% calculated): impact on the GSG computation
The pension contribution rates were adjusted to: % with effect from 1st July 2011, % with effect from 1st July 2012 and % with effect from 1st July by virtue of Council Regulation 1201/2014
Art. 83.a (4): if the difference between the new and the current contribution rates is lower than 0.25 points, no update will be implemented.
WG on Article 83 of the SR. Doc Art83_06

3. WG on Article 83 of the SR. Doc. 20150629 Art83_06
STAFF PCR UPDATE
(PROVISIONAL CALCULATION)
WG on Article 83 of the SR. Doc Art83_06

4. WG on Article 83 of the SR. Doc. 20150629 Art83_06
Computation of the pension contribution rate
The staff contribution rate is computed as one third of the
actuarial value of:
the service cost ( million €), divided by
the staff annual basic salaries ( million €)
The total service cost is the sum of:
Service cost for retirement ( million €)
Service cost for invalidity (52.5 million €)
Service cost for death (38.8 million €)
WG on Article 83 of the SR. Doc Art83_06

5. WG on Article 83 of the SR. Doc. 20150629 Art83_06
Change of the calculated pension contribution rate
The 2015 calculated pension contribution rate (10.2%) is slightly higher (+0.1%) than the 2014 calculated rate (10.1%)
The 0.1% increase has been originated by the evolution of the PSEO contributing members population
WG on Article 83 of the SR. Doc Art83_06

6. Contribution rate updates from 2004
WG on Article 83 of the SR. Doc Art83_06

7. WG on Article 83 of the SR. Doc. 20150629 Art83_06
Summary of main inputs used in calculations
This provisional assessment is based on a population of contributing members at
Real discount rate (RDR) = 2.7% (same as for the 2014 assessment)
General salary growth (GSG) = -0.2% (same as for the 2014 assessment)
Individual Salary Progression (ISP) = “2014 ISP table”
More explanations about assumptions used, provided in document « Art83_05»
WG on Article 83 of the SR. Doc Art83_06

8. PSEO Population (contributing members) by Institution
WG on Article 83 of the SR. Doc Art83_06

9. Reference Population by age and sex at 31.12.2014
WG on Article 83 of the SR. Doc Art83_06

10. WG on Article 83 of the SR. Doc. 20150629 Art83_06
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 ISRP, Eurocontrol and EPO
Eurostat is assisted by Ernst & Young Actuaires-Conseils / Paris
Ernst & Young checked this provisional calculation of the pension contribution rate and will examine any update implemented before the 1st September These updates will be implemented in case of justified reasons.
WG on Article 83 of the SR. Doc Art83_06

11. The Working Group is asked to express its views on this document
Thank you for your attention
WG on Article 83 of the SR. Doc Art83_06