1. WG on Article 83 of the SR. Doc. 20160627_Art83WG_06
Actuarial assessment of the PSEO at
- Provisional results -
Item 6.2 of the agenda
WG on Article 83 of the SR. Doc _Art83WG_06

2. WG on Article 83 of the SR. Doc. 20160627_Art83WG_06
Elements to be considered for the 2016 pension contribution rate adjustment
Pension contribution rates (Period: July 2015 – June 2016):
Calculated (not applied): 10.2%
Applied: %
Calculated rate for the period July 2016 – June 2017: 9.8%
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 _Art83WG_06

3. WG on Article 83 of the SR. Doc. 20160627_Art83WG_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 (55.5 million €)
Service cost for death (41.0 million €)
WG on Article 83 of the SR. Doc _Art83WG_06

4. WG on Article 83 of the SR. Doc. 20160627_Art83WG_06
Change of the calculated pension contribution rate
The 2016 calculated pension contribution rate (9.8%) is lower than the 2015 calculated rate (10.2%) and the 2015 applied rate (10.1%)
The -0.4% decrease is due to the combined effect of the evolution of the PSEO contributing members population , General Salary Growth and Real Discount Rate.
WG on Article 83 of the SR. Doc _Art83WG_06

5. Contribution rate updates from 2004
WG on Article 83 of the SR. Doc _Art83WG_06

6. WG on Article 83 of the SR. Doc. 20160627_Art83WG_06
Summary of main inputs used in calculations
This provisional assessment is based on a population of contributing members at
Real discount rate (RDR) = 2.9% (2015: 2.7%)
General salary growth (GSG) = -0.1% (2015: -0.2%)
Individual Salary Progression (ISP) = “2014 ISP table”
More explanations about assumptions used, provided in document « _Art83WG_05 AssumpAssessment2016»
WG on Article 83 of the SR. Doc _Art83WG_06

7. PSEO Population (contributing members) by Institution
WG on Article 83 of the SR. Doc _Art83WG_06

8. Reference Population by age and sex at 31.12.2015
WG on Article 83 of the SR. Doc _Art83WG_06

9. WG on Article 83 of the SR. Doc. 20160627_Art83WG_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 _Art83WG_06

10. 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 _Art83WG_06