Proposal for a COUNCIL REGULATION (EC, EURATOM) fixing from [1 May 2004] the correction coefficients applying to the pensions of officials and other servants of the European Communities

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. Background

When the Council took its decision to amend the Staff Regulations on xxx, it decided to discontinue correction coefficients for pension rights acquired after [1 May 2004] and to protect rights acquired before that date by applying specific correction coefficients to pensions on a transitional basis.

In accordance with Article 20 of Annex XIII and Article 3 of Annex XI to the Staff Regulations, the Council fixes the correction coefficients applicable to rights acquired by Community pensioners before [1 May 2004].

In accordance with Article 3 of Annex XI to the Staff Regulations, no correction coefficient is applicable in Belgium and Luxembourg.

2. Calculated correction coefficients for pensioners

Pursuant to the second subparagraph of Article 1(3)(a) of Annex XI to the Staff Regulations, Eurostat has determined the economic parities which fix purchasing power parities on 1 July 2003 between European Community pensions paid in the Member States and those paid in Belgium, the reference country.

The correction coefficients in the different countries are directly determined by the ratios between these economic parities and the conversion rates applicable on 1 July 2003.

In accordance with Article 17 of Annex VII to the Staff Regulations, these correction coefficients are directly applicable to transfers by officials and other staff from [1 May 2004].

The economic parities, conversion rates and calculated correction coefficients for pensions are shown in Table A.

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3. Correction coefficients for pensioners

Under Article 20(2) of Annex XIII to the Staff Regulations, the correction coefficients are derived as to 80% from the correction coefficients referred to in the first indent of Article 3(5) of Annex XI to the Staff Regulations (those applicable to officials) and as to 20% from the correction coefficients referred to in the second indent of that paragraph (those applicable to pensions).

The correction coefficients applicable to pensions in the various countries are shown in Table B below.

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Proposal for a COUNCIL REGULATION (EC, EURATOM) fixing from [1 May 2004] the correction coefficients applying to the pensions of officials and other servants of the European Communities

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to the Protocol on the privileges and immunities of the European Communities, and in particular Article 13 thereof,

Having regard to the Staff Regulations of officials and the Conditions of Employment of other servants, as laid down by Regulation (EEC, Euratom, ECSC) No 259/68 [1], as last amended by Regulation (EC, Euratom) No ... [2], and in particular Articles 63, 64, 65, 65a, 82 of and Annexes XI and XIII to those Regulations and the first paragraph of Article 20 and Article 64 of those Conditions of Employment,

[1] OJ L 56, 4.3.1968, p. 1.

[2] OJ ..., ..., p. 1.

Having regard to the proposal from the Commission,

Whereas:

(1) Application of Article 20(1) of Annex XIII to the Staff Regulations requires correction coefficients for the pensions paid in the Member States to be fixed.

(2) These correction coefficients are to apply immediately to the transfers mentioned in Article 17 of Annex VII.

(3) Application of Article 20(2) of Annex XIII requires a weighted average composed as to 20% by these correction coefficients and as to 80% by the correction coefficients applicable to the remunerations paid to officials in the [capitals of the] Member States.

HAS ADOPTED THIS REGULATION:

Article 1

1. With effect from [1 May 2004], pursuant to Article 17(3) of Annex VII, the correction coefficients applicable to transfers by officials and other servants to one of the following countries shall be as follows :

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2. With effect from [1 May 2004], the correction coefficients applicable pursuant to Article 20(2) of Annex XIII to the Staff Regulations shall be as follows:

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Article 2

This Regulation shall enter into force on the day following its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council

The President

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