TABLE OF CONTENTS

1. Introduction. 3

2. Contribution rate. 4

3. Update of the assessment of the actuarial balance. 4

4. Analysis of the contribution rate change. 4

4.1. Real Discount Rate (RDR) 5

4.2. General Salary Growth (GSG) 5

4.3. Individual Salary Progression (ISP) 5

4.4. Invalidity table. 5

4.5. Life Table (healthy persons) 5

4.6. Life table (invalid persons) 6

4.7. Assumed retirement age. 6

4.8. Average difference between men and women. 6

4.9. Probability of being married for men and women. 6

4.10. Loading factor for orphan’s and divorced spouse’s pension. 6

4.11. Methodological changes. 7

4.12. Population change effect 7

5. Computation system.. 7

5.1. Variables used in the assessment 7

5.2. Demographic parameters. 7

5.3. Economic parameters. 8

5.4. Technical implementation of Annex XII to the Staff Regulations. 8

5.5. Independent examination. 8

APPENDIX I - COMPUTATION.. 11

6. Relevant figures for calculating the contribution rate. 11

7. Summary of main variables. 12

8. Demographic parameters. 14

8.1. Reference population. 14

8.2. Assumed retirement age. 17

8.3. Invalidity Table. 18

8.4. Life table of healthy persons. 19

8.5. Life table of invalids. 19

8.6. Average age difference between men and women. 20

8.7. Probability of being married for men and women. 20

8.8. Turnover 20

9. Economic parameters. 20

9.1. Real Discount Rate (RDR) 20

9.2. General Salary Growth (GSG) 22

9.3. Individual Salary Progression (ISP) 23

9.3.1 Population groups. 23

9.3.2 ISP rates. 23

9.4. Turnover 24

9.4.1 Turnover definition. 24

9.4.2 T1. Turnover due to contract validity expiration. 24

9.4.3 T2. Turnover due to voluntary and unexpected losses. 25

9.5. Loading factor for orphan’s and divorced spouse’s pension. 26

10. Impact of changes in demographic and economic parameters in the calculation of the pension contribution rate 27

APPENDIX II – INDEPENDENT EXAMINATION.. 29

1. Introduction

Article 83a and Annex XII of the Staff Regulations set out rules to guarantee the equilibrium of the PSEO (Pension Scheme of European Officials).

Annex XII lays down rules for implementing Article 83a of the Staff Regulations. In particular, it stipulates that:

§ Eurostat is the authority responsible for the technical implementation of the Annex (see Article 13(1)),

§ Eurostat will be assisted by one or more qualified independent experts in carrying out the actuarial assessments (see Article 13(2)),

§ each year on 1 September, Eurostat is to submit a report on the assessment and updating referred to in Article 1 of the Annex (see Article 13(3)),

§ any questions of methodology raised by the implementation of the Annex shall be dealt with by Eurostat in cooperation with national experts from the relevant departments of the Member States and the qualified independent expert or experts (see Article 13(4)).

Certain articles of Annex XII expired on 30 June 2013. Eurostat has drawn up the present report in accordance with the above legal requirements.

The first and the second five-yearly actuarial assessments of the pension scheme of the European civil service were carried out in 2004 and 2008 respectively.

This report sets out the results of the 2013 five-yearly actuarial assessment, based on the population of European officials as at 31 December 2012.

The report provides the information needed by the Commission to propose, if necessary, changes to the staff contribution rate in order to ensure the balance of the scheme.

For any further information concerning this report, please contact Eurostat in Luxembourg:

Eurostat, Unit C-3 Secretariat BECH – A2/003 L-2920 Luxembourg Tel.: (352) 4301-34821

2. Contribution rate

The 2013 actuarial assessment of the Pension Scheme for European Officials (PSEO) indicates that, in order to guarantee the equilibrium of the scheme, the contribution rate necessary to finance one third of the benefits payable would be 10.3% of the basic salary (or invalidity or termination of service allowance). This actuarial assessment has been made in accordance with the agreed methodology.

The 10.3% calculated contribution rate is one third of the ratio between the service cost (1 166 million Euros) and the annual basic salaries (3 755 million Euros) (see Appendix I, Tables I and II). This rate is 0.4% higher than the one calculated in 2012 (9.9%) but not implemented: the change is analysed in point 4.

Moreover the new RDR and GSG update and pension assessment, have been reviewed and approved by independent actuarial consultants.

3. Update of the assessment of the actuarial balance

The PSEO was assessed on the basis of the computation method set out in Chapter 2 of Annex XII of the Staff Regulations[1].

The following elements have been considered in the 2013 assessment:

– the population of contributing members at 31.12.2012,

– the update of the Real Discount Rate (RDR),

– the update of the General Salary Growth Rate (GSG),

– the update of the Individual Salary Progression rates (ISP),

– the update of the Life Table,

– the update of the Invalidity Table.

More details about these updates are given in Appendix I.

4. Analysis of the contribution rate change

Changes to the pension contribution rate result from the combined effect of changes in the population structure and in actuarial assumptions. The separate impact of these changes in the officials' contribution rate change is not easy to determine due to their interdependency, although analysis of the actuarial assumptions allows a better understanding of the changes in contribution rate and its sensitivity to the various actuarial assumptions.

As indicated in point 2, the official’s pension contribution rate calculated this year (10.3%) is higher than the one calculated in 2012 (9.9%). This 0.4% increase is mainly explained by the combined effect of the population evolution and actuarial assumptions update, the most important of which being the RDR increase (2.6% in 2012 to 2.7% in 2013) and the Life Table update.

Changes in actuarial assumptions and their impact on the contribution rate were presented in detail at the 28 June 2013 meeting of the Article 83 Working Group (see document 20120628 Art83_05). Further details are given in Appendix I.

4.1. Real Discount Rate (RDR)

The RDR (2.7%) used in 2013 calculation is higher than the one used in 2012 assessment (2.6%). The observed effect was a -0.3% decrease of the calculated pension contribution rate.

4.2. General Salary Growth (GSG)

The GSG (-0.2%) used in 2013 calculation is the same than the one used for the 2012 assessment. Consequently no impact was observed on the calculated pension contribution rate.

4.3. Individual Salary Progression (ISP)

ISP rates have been updated to take account of the observed promotion rates from 2005 to 2012 in accordance with methodology agreed at the June 2006 Art83 WG meeting. This update is further explained in Appendix I.

The ISP update had no material impact on the pension contribution rate.

4.4. Invalidity table

The invalidity table was updated with the most recently observed invalidity rates (2012). The new invalidity table (2013 EU Invalidity table) is thus an average of 5 years invalidity rates (2008–2012). The use of this updated table made the pension contribution rate decrease by 0.1% (see further explanation in appendix I, point 8.3).

4.5. Life Table (healthy persons)

According to the Staff Regulations the life table can only be updated on the occasion of the five-yearly actuarial assessment[2]. Despite the fact that the related article of the Staff Regulations is no longer in force since 1 July 2013, it was considered appropriate to move from the 2008 ICSLT (International Civil Servants Life Table) to the ICSLT2013 Provisional Life Table which is a dynamic table better reflecting the new trend of life expectancies.

The life table update led to a 0.6% increase of the calculated contribution rate.

4.6. Life table (invalid persons)

It is normal actuarial practice to consider life expectancy of invalids as slightly shorter than that of healthy persons (e.g. EuroControl applies the mortality rate corresponding to a healthy person 3 years older than an invalid’s age). Eurostat has applied this actuarial practice since the 2008 pension assessment.

The observed impact on the calculated pension contribution rate due to a change in the table is included in the 0.6% increase described in the preceding paragraph.

4.7. Assumed retirement age

Assumed retirement ages by staff category groups were first estimated for the 2004 pension assessment, and presented at the June 2004 meeting of the Article 83 Working Group. As provided for in paragraph 3 of Article 83(a) of the Staff Regulations these assumed retirement ages were checked in 2008, on the occasion of the second five-yearly actuarial assessment, and no change was proposed for the following five-year period.

The assumed retirement ages are identical to those used since 2004 and will be updated following an eventual amendment of the related legal provisions; no impact on the calculated contribution rate due to a change in assumed retirement age was observed.

4.8. Average difference between men and women

The average age difference between married men and women has been updated (2 years compared to 3 years applied since 2004) to reflect observations made. The test showed that on average married men are 1.9 years older than their partners and married women 2.6 years younger than their partners.

The update of the average difference in age had no material impact on the calculated pension contribution rate.

4.9. Probability of being married for men and women

The probabilities of being married at retirement for officials and ex-officials aged more than 59, have been reassessed in 2013 and updated probabilities were presented at the June 2013 meeting of the Article 83 Working Group. The changes proposed involve passing from 84% to 81% for males, and from 38% to 49% for females.

The update of the probability of being married had no material impact on the calculated pension contribution rate.

4.10. Loading factor for orphan’s and divorced spouse’s pension

Current actuarial practice is to add 10% to a payable reversion pension to allow for the pension payable to orphans after the death of the surviving spouse (or of the official if there is no surviving spouse) and any pension payable to divorced spouses. Eurostat estimates that the impact of this factor on the contribution rate is minor and does not consider an update to this assumption necessary at the present time.

Since the loading factor for pensions payable to orphans and divorced spouses is unchanged, no impact on the calculated pension contribution rate due to a change in the loading factor was observed.

4.11. Methodological changes

No methodological changes have been implemented in the occasion of the 2013 pension assessment, thus no impact on the pension contribution rate was observed.

4.12. Population change effect

The yearly population change had a material impact (+0.3%) on the pension contribution rate calculated this year.

5. Computation system

5.1. Variables used in the assessment

In general, two kinds of variables are used in the actuarial calculation:

Parameters: These are values mainly linked to the application of the Staff Regulations. These values change according to certain conditions related to the individual situation of each official (e.g. the annual accrual rate is 1.9% for staff recruited from 01.05.2004 and 2% for those recruited before this date). These values can be clearly established.

Actuarial assumptions: These are values that are not known and cannot be established exactly, such as the invalidity table, the ISP table, the probability of being married at the retirement date, the loading factor for orphans and divorced spouses. The values of these actuarial assumptions are estimated in accordance with general actuarial practices. They were discussed with national experts from the Member States at the annual meetings of the Article 83 Working Group, and reviewed by independent actuarial consultants.

A summary of the main variables used (parameters and actuarial assumptions) is given in Appendix I, Tables III and IV.

5.2. Demographic parameters

The reference population is made up of contributing members of the PSEO including:

§ active officials,

§ members whose pension contribution is optional (e.g. officials who have taken leave on personal grounds or parental leave),

§ invalids who receive an invalidity allowance under Article 78 of the Staff Regulations,

§ Beneficiaries of an allowance for termination of service.

57 024 contributing members were recorded at 31.12.2012, which represents a net increase of 785 participants compared to the previous year (56 239 contributing members recorded at 31.12.2011).

The contributing members increase is the net effect of the increase due to the new contributing members (+3 268) and the decrease linked to members who have left the scheme or became pensioners (-2 483).

A breakdown of the reference population by Institution or Agency is included in Appendix I, Table VII and a pyramid of ages in Figure I.

5.3. Economic parameters

Due to the expiry of articles 10 and 11 of Annex XII to the Staff Regulations on 30 June 2013, the Real Discount Rate (RDR) and the General Salary Growth (GSG) have been calculated in compliance with best actuarial practices. A moving average of the corresponding rates for the 16 preceding years has been used to make those two assumptions more stable and in line with the proposal on the Staff Regulations reform[3]. Considered their strong impact on the pension contribution rate, this latest will also be less variable (more details are provided in Appendix I, points 9.1 and 9.2 and Tables XII and XIII).

5.4. Technical implementation of Annex XII to the Staff Regulations

Technical questions raised by the implementation of Annex XII were dealt with by Eurostat in cooperation with national experts from the relevant departments of the Member States participating in the Working Group on Article 83 of the Staff Regulations.

Eurostat also exchanges relevant information on actuarial issues with international organisations such as the ISRP (International Service for Remunerations and Pensions of the Coordinated Organisations), EPO (European Patent Office) and EuroControl.

5.5. Independent examination

In accordance with Annex XII, Article 13, of the Staff Regulations, Eurostat was assisted by a qualified independent expert with regard to the methodological implementation and the definition and calculation of the corresponding actuarial assumptions.

The independent expert conducted an actuarial examination of the contribution rate calculated by Eurostat. This examination consisted in confirming the relevance and reliability of the actuarial processes and assumptions used in accordance with the methodology described in Annex XII to the Staff Regulations.

For the aspects not described explicitly in Annex XII, the independent expert checked their compliance with generally accepted actuarial practices. Concerning actuarial assumptions, the independent expert carried out investigations to ensure that the underlying data provided by Eurostat were used correctly.

A summary of the assessment by the independent expert is included in Appendix II to this report.

APPENDIX I - COMPUTATION

6. Relevant figures for calculating the contribution rate

Table I. Breakdown of the contribution rate

Table II. Service cost and total amount of annual basic salaries

7. Summary of main variables

The following tables show the values of the main parameters (see Table III) and actuarial assumptions (see Table IV). Please note that the tables only present an overview of the main variables and are not exhaustive. Please refer to the Staff Regulations and their annexes for precise and complete information.

Table III. Parameters used in the actuarial assessment

Table IV. Actuarial assumptions

Some of the assumptions have changed compared to the 2012 actuarial assessment. The following table summarises these changes:

Table V. Changes in actuarial assumptions

8. Demographic parameters

8.1. Reference population

Annex XII, Article 1 of the Staff Regulations stipulates that the actuarial assessment shall be carried out in each year n, on the basis of the population of active members of the PSEO at 31 December of the previous year (n-1). Moreover, Article 9 of Annex XII provides that the population of participants in the scheme is to be collected annually by the Commission using information received from the different institutions and agencies whose staff are members of the scheme.

In accordance with these rules, the reference population is taken to be the staff at 31 December 2012 of the 51 institutions and agencies (same number recorded at 31 December 2011) whose officials are members of the PSEO.

Table VI. Institutions and Agencies in the PSEO

As approved by the Article 83 Working Group at its meeting of 7 June 2004, the term “active members of the PSEO” is considered in the wide sense to be synonymous with “contributing members of the PSEO”. Consequently, the reference population includes not only officials in “active employment” but also officials in one of the other administrative statuses set out in Article 35 of the Staff Regulations, plus invalids who receive an invalidity allowance and beneficiaries of an allowance for termination of service.

Personnel data were collected from the NAP[4], from Sysper2[5] and directly from institutions and agencies, and imported into the Eurostat database. The data were checked to ensure a high level of quality. The actuarial assessment is based on the output from the Eurostat database at the reference date.

Table VII. Reference population by institution or agency

Figure I. Reference population by age

8.2. Assumed retirement age

As stipulated in Article 4 of Annex XII to the Staff Regulations, it is assumed that all retirements will occur at a fixed average age (r). The average retirement age may be different according to the group of staff.

Table VIII. Assumed retirement age and Barcelona incentive by age group of officials

Please note that pension incentives (called Barcelona incentive since 2004) are based on acquired pension rights in groups 1 and 2 above (Old Staff Regulations), while they are based on the last basic salary for groups 3 to 5 (New Staff Regulations).

The assumed retirement ages detailed in the two right columns in the table VIII were estimated on the occasion of the 2004 pension assessment and were presented at the June 2004 meeting of the Article 83 Working Group. These assumed retirement ages have been used in pension assessments since 2004.

As no changes were made to this assumption, no impact could be observed to the pension contribution rate.

8.3. Invalidity Table

A first invalidity table (2004-EU Invalidity table) was used in the 2004 assessment. According to decision taken at the Art83 Working Group at its 26th June 2007 meeting, this table must be updated each year to take account of the evolution of beneficiaries of an invalidity allowance (category of population created with the new Staff Regulation in force from the 1st May 2004).

A moving average of 5 years of invalidity observation is used: the number of invalids recorded in 2007 (88) has been replaced by the number recorded in 2012 (116) in the 5 years moving average of invalidity observations. Thus the total of invalids in this 5-year period increased from 471 to 499 invalids.

The following table shows the number of invalids from 2008 to 2012.

Table IX. Invalids by year

The 2008 to 2012 invalidity observations have been used to update the invalidity table by sex (EU-2013 Invalidity Table). The table below is an extract from the unisex version of the table for presentation purposes only, whereas the complete table by sex was used in computations.

Table X. EU-2013 Invalidity Table (Extract)

The use of the EU-2013 Invalidity Table made the pension contribution rate decrease by 0.1%, maintained unchanged the other assumptions.

8.4. Life table of healthy persons

The life table used for the calculation was updated in 2013 (ICSLT2013 Provisional Life Table) on occasion of the five-yearly assessment of the actuarial balance of the pension scheme, last five-yearly update having been done in 2008.

The methodology used to set up this life table was presented to the Article 83 Working Group at the 28 June 2013 meeting (document 20130628 Art83_05, available from Eurostat).

This new Life Table has replaced the 2008 ICSLT Life Table which had been used in 2008 to 2012 pension assessments 2008 to 2012.

A future life expectancy trend has been introduced thus moving from a periodic (static) to a prospective (dynamic) Life Table.

The following table is an extract from this table.

Table XI. ICSLT2013 Provisional

The use of the ICSLT2013Prov made the pension contribution rate increase by 0.6%, maintained unchanged the other assumptions. The 0.6% variation is explained by the increase in life expectancies and the inclusion of a future life expectancy trend.

8.5. Life table of invalids

It is normal actuarial practice to consider life expectancy of invalids as slightly shorter than that of healthy persons (e.g. EuroControl applies the mortality rate corresponding to a healthy person 3 years older than an invalid’s age). Eurostat has applied this actuarial practice since the 2008 pension assessment.

8.6. Average age difference between men and women

A difference of age at retirement between married men and women of 2 years, has been applied in the present actuarial calculations.

The 2 years figure has replaced the 3 years which had been be used in past assessments, as a result of observations made: the test showed that married men are 1.9 years on average older than their partners and married women 2.6 years younger than their partners.

This change had no significant impact on the pension contribution rate.

8.7. Probability of being married for men and women

Eurostat has analysed the recent population of officials and ex-officials older than 59 years and calculated their probability of being married: results were 81% probability for men and 49% for women.

These updated probabilities have been used in the present pension assessment, however their impact on the pension contribution rate, was not material.

8.8. Turnover

Active members of the PSEO will definitely stop activity one day and eventually leave the pension scheme.

Turnover has been divided in two types:

§ Turnover due to end of contract validity (T1),

§ Turnover due to voluntary and unexpected losses (T2).

Turnover ratios have been updated for the present pension assessment leading to a -0.1% decrease of the pension contribution rate.

9. Economic parameters

9.1. Real Discount Rate (RDR)

Article 10 in Annex XII of the Staff Regulations has expired on 30 June 2013.

In the absence of a compelling legal basis, Eurostat made reference to the best actuarial practices and opted for a 16 years moving average for the computation of the RDR: the rationale for this choice was to make the RDR more stable which would also grant less variability of the pension contribution rate which is strongly affected by this parameter.

Furthermore the choice of a 16 years moving average, keeps into account recent developments as regards the relevant articles in the new text of the Staff Regulations which will represent the compelling legal basis since 1 January 2014[6].

Consequently, real discount rates (RDR) from 1997 until 2012 have to be used in the 2013 assessment of the PSEO.

Nominal discount rate (NDR): 5.0%. This is the average of 1997 to 2012 nominal rates of euro area zero-coupon (government bonds) yield with a maturity of 21 years, 21 years being the duration of the scheme.

Inflation rate (IR): 2.2%. This is the average of 1997 to 2012 of an appropriate consumer price index

Real discount rate (RDR): 2.7% (2.6% in the assessment at 31.12.2011). It is the average of 1997 to 2012 real discount rates, the latest being calculated as "100*(100+NDR)/(100+IR)-100)".

Table XII. Real Discount Rate (RDR)

The 0.1% increase of the RDR (2.7% used in this assessment instead of 2.6% used in the assessment at 31.12.2011) made the contribution rate decrease by 0.3%, assumed stable the other assumptions.

9.2. General Salary Growth (GSG)

Article 11 in Annex XII of the Staff Regulations has expired on 30 June 2013.

Article 11 of the Annex XII contained specific rules for calculating General Salary Growth, in particular stipulating that the annual change in salary scales to be used for the actuarial calculations must be based on the specific indicator (SI) and on the other hand that the effective annual rate is the average of the net SIs for the 12 years preceding the current year.

In the absence of a compelling legal basis, Eurostat made reference to the best actuarial practices and opted for a 16 years moving average for the computation of the GSG: this choice was made in an attempt to render the GSG more stable and so the pension contribution rate which is highly dependent on this parameter.

Furthermore the choice of a 16 years moving average, keeps into account recent developments as regards the relevant articles in the new text of the Staff Regulations which will represent the compelling legal basis since 1 January 2014[7].

The 16-year moving geometric average from 1997 to 2012 (GSG) is -0.2% (the same value was used in the 2012 assessment).

Table XIII. General Salary Growth

As the GSG did not change compared to the PSEO assessment at 31.12.2011, no impact on the contribution rate occurred.

9.3. Individual Salary Progression (ISP)

1.1.1 Population groups

The Individual Salary Progression (ISP) refers to the salary increase due to the career advancement of EU officials, i.e. promotions and seniority steps.

The ISP may have a significant impact on the contribution rate, though lower than that of the RDR and GSG.

With the introduction of the new Staff Regulations on 1.5.2004, the career progression of EU officials has been completely reviewed. Annex XIII of these Staff Regulations includes transitional measures which made the determination of this assumption quite complicated.

The active population is divided into five homogeneous groups according to their status.

1.1.2 ISP rates

The following table shows ISP rates used in the 2011 and 2012 assessments:

Table XIV. Average ISP rates by group of population

ISP rates in the table above are the average of ISP rates weighted by the population in each group. These average rates are calculated for publication purposes only, the detailed rates by grade and years to retire being used in computation at individual level.

ISP of officials changed slightly in comparison with these used in the assessment at 31.12.2012.

This change had no material impact on the pension contribution rate.

9.4. Turnover

1.1.3 Turnover definition

Active members of the PSEO (officials, temporary staff, contract staff and parliamentary assistants) will definitely stop activity one day for several reasons and eventually leave the pension scheme.

To facilitate computation, turnover has been divided in two types:

§ Turnover due to end of contract validity (T1),

§ Turnover due to voluntary and unexpected losses (T2). This mainly concerns resignation before the end of a contract, dismissal for incompetence and disappearance.

Losses due to other unexpected reasons (invalidity and death) and voluntary decisions (mainly secondment, retirement, inactive status according to Article 41 of SR, leave on personal grounds, leave for military service, parental or family leave) are excluded from the definition of turnover (these causes of leaving are already computed in another way).

1.1.4 T1. Turnover due to contract validity expiration

Two assumptions have been used:

§ The ratio of indefinite contracts to fixed-length contracts.

§ Average duration of contracts in years.

The following table shows the rates of both assumptions above by contract type, these rates being based on observations:

Table XV. T1 rates by contract types

1.1.5 T2. Turnover due to voluntary and unexpected losses

The number of active staff who left institutions due to resignation, dismissal for incompetence and disappearance in the year N has been compared to the active population in the year N-1 to obtain the yearly T2 by contract type. The rate to be used in the actuarial calculation has been computed as the average of the losses in the last seven years (2006 to 2012) compared to active staff in 2005 to 2011.

Table XVI. T2 rates by contract types

The change of T1 and T2 turnover rates had a low impact (-0.1%) on the pension contribution rate.

9.5. Loading factor for orphan’s and divorced spouse’s pension

Current actuarial practice is to add 10% to a payable reversion pension to allow for the pension payable to orphans after the death of the surviving spouse (or of the official if there is no surviving spouse) and any pension payable to divorced spouses. Eurostat estimates that the impact of this factor on the contribution rate is minor and the same assumption has been used in the 2013 actuarial assessment.

10. Impact of changes in demographic and economic parameters in the calculation of the pension contribution rate

The yearly change in the calculated contribution rate is explained by the combined effect of changes in population, methodology, assumptions and other variables used. The calculated change +0.4% (10.3% obtained in the present assessment against 9.9% in the assessment at 31.12.2011) is mainly explained by the RDR increase, and Life Table update.

The following table summarises the impact of these changes.

Table XVIII. Explanation of the change in calculated pension contribution rates at 31.12.2012 and 31.12.2013

APPENDIX II – INDEPENDENT EXAMINATION

An independent expert conducted an actuarial examination of the contribution rate calculated by Eurostat. This examination confirmed the relevance and reliability of the actuarial processes and assumptions used in accordance with the methodology described in Annex XII to the Staff Regulations. For the elements not described explicitly in this Annex, the independent expert checked their compliance with generally accepted actuarial practices. Regarding the actuarial assumptions, the independent expert carried out tests to ensure that the underlying data provided by Eurostat were used correctly.

The independent expert report concluded that:

"… as an independent expert, has conducted an actuarial examination of the 2013 update of the actuarial assessment of the pension scheme referred to in Article 83a (3) of the new Staff Regulations for which Eurostat endorsed the technical responsibility towards the Commission according to the Annex XII “Rules for implementing Article 83a of the Staff Regulations”. This examination consisted in confirming the relevance and the reliability of the actuarial processes and assumptions used in accordance with the methodology described in Annex XII to evaluate the contribution rate of officials.

For the aspects explicitly mentioned in Annex XII, we did not detect any elements likely to cast doubt that the calculations determined by Eurostat are not compliant with the rules of Annex XII

For the aspects not described explicitly in Annex XII, we have checked their compliance with the generally accepted actuarial practices and we did not detect any significant difference with the methodology and the assumptions we would have chosen ourselves to perform the calculations.

… has no reason to doubt that the official’s contribution rate (10.3%) calculated by Eurostat is a sufficiently accurate estimate of the reality of the Pension Scheme of the European Officials (PSEO)".

The complete independent expert report on the actuarial examination of the contribution rate is available from Eurostat.

[1] The methodology is further explained in a separate document available at Eurostat

[2] Article 9(2) of Annex XII to the Staff Regulations.

[3] It is proposed setting to 30 the number of years mentioned in Article 4(6), 10(2) and 11(2) of the Annex XII of the SR, This change being implemented in a transitional period starting by 16 years in 2014 in accordance with Article 11a of the Annex XIII.

[4] The NAP (New Application for Pay) application is a centralised database that has been created to produce the monthly salary and pension forms for all institutions and agencies. This database contains a large part of the personnel data, particularly amounts paid and pension contributions.

[5] Sysper2 is the IT system to manage personal data of the Commission staff. It is also used by PMO (Pay Master Office) to manage pensions and transfers of pension rights of the staff of EU institutions and agencies

[6] It is proposed to set to 30 the number of years mentioned in Article 4(6), 10(2) and 11(2) of the Annex XII of the SR, In accordance with Article 11a of the Annex XIII, this change will be implemented with a transitional period starting with 16 years in 2014

[7] It is proposed to set to 30 the number of years mentioned in Article 4(6), 10(2) and 11(2) of the Annex XII of the SR, In accordance with Article 11a of the Annex XIII, this change will be implemented with a transitional period starting with 16 years in 2014.