EN    EN EN 
EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 29.10.2009  
SEC(2009) 1466 final 
  
COMMISSION STAFF WORKING DOCUMENT 
Report on the 2009 update of the 2008 actuarial assessment of the 
Pension Scheme for European Officials (PSEO) 
  
{
COM(2009) 604 final}
EN    EN TABLE OF CONTENTS 
COMMISSION STAFF WORKING DOCUMENT Report on the 2009 update of the 2008 
actuarial assessment of the Pension Sche me for European Officials (PSEO............................. 1 
1. Introduction................................................................................................................ .. 4 
2. Contribution rate .......................................................................................................... 5  
3. Update of the assessment of the actuarial balance....................................................... 5 4. Analysis of the contribution rate change...................................................................... 5 4.1. Real Discount Rate (RDR) change effect .................................................................... 6 4.2. General Salary Growth (GSG) change effect............................................................... 6 4.3. ISP change effect......................................................................................................... .6  
4.4. Invalidity table change effect....................................................................................... 6 4.5. Life table (healthy persons).......................................................................................... 6 4.6. Life table (invalid persons) .......................................................................................... 6 4.7. Assumed retirement age............................................................................................... 7 4.8. Average difference between men and women ............................................................. 7 4.9. Probability of being married for men and women ....................................................... 7 4.10. Loading factor for orphan’s and divorced spouse’s pension ....................................... 7 4.11. Population change effect.............................................................................................. 7 5. Computation system..................................................................................................... 9 5.1. Variables used in the assessment ................................................................................. 9 5.2. Demographic parameters ............................................................................................. 9 5.2.1. The reference population.............................................................................................. 9 5.3. Economic parameters................................................................................................. 10 5.4. Technical implementation of Annex XII to the Staff Regulations ............................ 10 5.5. Independent examination ........................................................................................... 10 
ANNEX I - COMPUTATION ................................................................................................. 11 
1. Relevant figures for calcul ating the contribution rate................................................ 11 
2. Summary of main variables ....................................................................................... 12 3. Demographic parameters ........................................................................................... 13 
EN    EN 3.1. Reference population ................................................................................................. 13 
3.2. Assumed retirement age............................................................................................. 16 3.3. Invalidity table .......................................................................................................... . 17 
3.4. Life table of healthy persons...................................................................................... 19 3.5. Life table of invalids .................................................................................................. 19  
3.6. Average age difference between men and women..................................................... 19 3.7. Probability of being married for men and women ..................................................... 20 4. Economic parameters................................................................................................. 20 4.1. Real Discount Rate (RDR)......................................................................................... 20 4.2. General Salary Growth (GSG)................................................................................... 21 4.3. Individual Salary Progression (ISP)........................................................................... 22 4.4. Loading factor for orphan’s and divorced spouse’s pension ..................................... 23 5. Annuities ................................................................................................................... . 23 
ANNEX II – INDEPENDENT EXAMINATION ................................................................... 25 
EN    EN 1. INTRODUCTION  
Article 83a and Annex XII of the Staff Regulati ons 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 im plementation 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 th e implementation of the Annex shall be 
dealt with by Eurostat in cooperation with national ex perts from the relevant 
departments of the Member States and th e qualified independent expert or experts 
(see Article 13(4)). 
Eurostat has drawn up the present report in ac cordance with the above legal requirements. The 
second five-yearly actuarial assessment of the pe nsion scheme of the European civil service 
was carried out in 2008. This report sets out  the results of the 2009 update of this 2008 
actuarial assessment, based on the population of European officials as at 31 December 2008. 
The report provides the information needed by the Commission to propose, if necessary, 
changes to the staff contribution rate in or der to ensure the balance of the scheme. 
For any further information concerning this repor t, please contact Eurostat in Luxembourg: 
 
Eurostat, Unit C-6 Secretariat 
BECH – A2/018 
L-2920 Luxembourg 
Tel.: (352) 4301-34191 
EN    EN 2. CONTRIBUTION RATE  
The 2009 actuarial assessment of the Pension Scheme for European Officials (PSEO) 
indicates that, in order to guarantee the equi librium of the scheme, the contribution rate 
necessary to finance one third of  the benefits payable would be 11.3%  of the basic 
salary (or invalidity allowance). This act uarial assessment was presented to the 
Article 83 Working Group at the 24 June 2009 meeting. 
The calculated contribution ra te indicated above (11.3%) is one third of the ratio 
between the total of the serv ice cost (1 115 million euros) and the total of annual basic 
salaries (3 288 million euros) (see Anne x I, Tables I and II). This rate is higher (+ 0.4%) 
than the one calculated in 2008 (10.9%). This increase is mainly explained by the fall in the interest rate. 
3. U
PDATE OF THE ASSESSMENT OF THE ACTUARIAL BALANCE  
The PSEO was assessed on the basis of the co mputation method set ou t in Chapter 2 of 
Annex XII of the Staff Regulations. 
Compared to the 2008 assessment, a few minor changes were introduced in the 
methodology (some formulae were adapted to  take some new categories of the 
population into account, according to the Sta ff Regulations in force since 1 May 2004). 
These changes have been app lied since the 2006 assessment. 
An updated document concerning the calcula tion methodology is avai lable and can be 
obtained from Eurostat on request. 
In addition, the following elements have  been considered in the 2009 assessment: 
– The population of contributing members at 31 December 2008, 
– The update of the Real Disc ount Rate (RDR), General Sa lary Growth (GSG) rate, 
Individual Salary Progression (I SP) rate and Invalidity table. 
More details about these upda tes are given in Annex I. 
4. ANALYSIS OF THE CONTRIBUTION RATE CHANGE  
As indicated in point 1, the o fficial’s pension contribution rate calculated this year 
(11.3%) is higher than the one calculated in  2008 (10.9%). This increase ( +0.4%) 
results from the combined effect of cha nges in the population st ructure and the main 
actuarial assumptions. The separate effects of  these changes on the contribution rate is 
not easy to determine due to their interdep endency, although analys is of the actuarial 
assumptions allows a better understanding of the changes in contribution rate and its 
sensitivity to the various actuarial assumptions. 
Changes in actuarial assumptions and th eir impact on the contribution rate were 
presented at the 24 June 2009 meeting of the Article 83 Working Group (see document 
20090624 Art83_05) 
EN    EN 4.1. Real Discount Rate (RDR) change effect 
The RDR decreases (2.8% as against 3.1% us ed in the 2008 calcula tion). This decrease 
(-0.3) has an impact of around +0.8 percenta ge points on the pensi on contribution rate. 
If the former RDR is used, 10.5% is obtaine d instead of 11.3%. This test, this year, 
confirms that the official’s contribution rate  sensitivity is about 2.5 times the change in 
the RDR. 
4.2. General Salary Growth (GSG) change effect 
The GSG decreases (0.3% as against 0.4% in the 2008 calculation). This  decrease (-0.1) 
has an impact of around -0.3 percentage poi nts on the pension cont ribution rate. If the 
former GSG rate is used, 11.6% is obtained instead of 11.3%. This test, this year, 
confirms that the official’s contribution rate  sensitivity is about 3 times the change in 
the GSG (broadly similar to the RDR).  
4.3. ISP change effect 
The ISP decreased overall in the 2009 valu ation (1.3%) compared to 2008 (1.5%). In 
practice, a different ISP rate by grade, step and years to retirement is applicable to 
officials and temporary agents of agencies and is used in the calculation. The overall 
decrease (-0.2) has an impact of about -0.2 percentage points on the pension contribution rate. If the former ISPs are used, 11.5% is obtained instead of 11.3%. This 
test, this year, shows that the official’s cont ribution rate sensitivity is about the same as 
the change in the global weighted ISP.  
4.4. Invalidity table change effect 
The table of probabilities of becoming i nvalid was updated with the most recently 
observed invalidity rates (2008) also taken into account. The new invalidity table (2009 
EU Invalidity table) is thus an average of 5 years invali dity rates (2004 – 2008). The use 
of this updated table has an impact of around -0.1 percentage points on the pension 
contribution rate. A contribution rate of 11.4% instead of 11.3% is obtained if the 
former 2008 EU Invalidity table was used.  
4.5. Life table (healthy persons) 
According to the Staff Regulations the life ta ble may be updated only on the occasion of 
the five-yearly actuarial assessment
1. The life table was updated on the occasion of the 
2008 actuarial assessment and this table, 2008 IC SLT, must be used at least until the 
next five-yearly assessment in 2013. 
The life table used in the 2009 calculation is t hus identical to that used in the 2008 
calculation and there is no impact on the calcul ated contribution rate due to a change in 
the table. 
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. Eurocontro l applies the mortality rate corresponding to 
                                                 
1 Article 9(2) of Annex XI I to the Staff Regulations. 
EN    EN a healthy person 3 years older than an invali d’s age). Eurostat considers this approach 
very logical and applied this actuarial pr actice for the first time in the 2008 pension 
assessment. 
The same practice was applied in the 2009 calc ulation, and since the life table used in 
the 2009 calculation is identical to that used  in the 2008 calculation, there is no impact 
on the calculated contribution rate due to a change in the table. 
4.7. Assumed retirement age 
Assumed retirement ages by staff groups we re first estimated for the 2004 pension 
assessment, and were presented at the J une 2004 meeting of th e Article 83 Working 
Group. As provided for in paragraph 3 of Artic le 83(a) of the Staff Regulations these 
assumed retirement ages were checked in 2008, on the occasion of the second five-yearly pension assessment, and no change was proposed for the following five-year period.  
The assumed retirement ages are therefore id entical to those used since 2004 and there 
is no impact on the calculated contribution rate due to a change in assumed retirement age. 
4.8. Average difference between men and women 
The average age difference between men and women (3 years) that has been applied 
since 2004 in actuarial calculations was checked in 2008, and found to correspond to 
reality. The test showed th at on average married men ar e 3.01 years older than their 
partners and married women 3.18 years younger than their partners. 
Since the average difference in age is uncha nged, there is no imp act on the calculated 
contribution rate due to a change in this age difference. 
4.9. Probability of being married for men and women 
The probabilities of being married for official s and ex-officials aged more than 59 were 
reassessed in 2008 and updated probabilities were  presented at the June 2008 meeting of 
the Article 83 Working Group. No change wa s proposed at the J une 2009 meeting of 
the Article 83 Working Group. 
Since the probability of being married is unc hanged, there is no impact on the calculated 
contribution rate from a change in probabil ities of being married for men and women. 
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 afte r the death of the surviving s pouse (or of the official if 
there is no surviving spouse) and any pens ion 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 assumpti on necessary at the present time.  
4.11. Population change effect 
The pension contribution rate for 2009 w ould be 0.1% higher (11.4% instead of 11.3%) 
if the 2009 calculation were repeated exactly but for th e population used  in the 2008 
EN    EN calculation. The demographic impact can thus be  estimated to be -0.1 percentage points. 
This net impact is due to a variety of factors which ca nnot easily be analysed in 
isolation. 
EN    EN 5. COMPUTATION SYSTEM  
5.1. Variables used in the assessment 
In general, two kinds of variables ar e used in the actuarial calculation: 
Parameters.  These are values mainly linked to th e application of the Staff Regulations. 
These values change according to certain condit ions 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 I SP (Individual Salary Pr ogression) table, the 
probability of being married at the retireme nt date, the coefficients for orphans and 
divorced spouses. The values of these ac tuarial assumptions were estimated in 
accordance with general actuarial  practices and discussed with  national experts from the 
relevant departments of the Member States  at the annual meeti ngs of the Article 83 
Working Group. 
A summary of the main variables used (par ameters and actuarial assumptions) is given 
in Annex I, Tables III and IV. 
5.2. Demographic parameters 
5.2.1.  The reference population 
The observed population is made up of cont ributing members of the PSEO including: 
– active officials,  
– members whose pension contribution is optio nal (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. 
49 953  contributing members were recorded at 31.12.2008, which represents a net 
increase of 2 357  participants compared  to the previous year (47 596 at 31.12.2007 were 
used in the 2008 actuarial assessment). 
This significant increase in the population is  mainly explained by the recruitment of 
“contract agents” (a new category of popula tion defined in the Staff Regulations) and 
officials and temporary agents from the new Member States. 
There are 7 654 contract agents among the contributing members at 31.12.2008, as 
against 7 037 at 31.12.2007, which represents an increase of 8.77%. There are 7 044 
temporary agents among the contributing members at 31.12.2008, as against 6 362 at 
31.12.2007, an increase of 10.72%. 
A breakdown of the reference population by  type of contribu ting member and by 
Institution or Agency is included in Annex I, Tables VI to VIII. 
EN    EN 5.3. Economic parameters 
In accordance with Articles 10 and 11 of Anne x XII to the Staff Regulations, the Real 
Discount Rate (RDR) and the General Salary Growth (GSG) are calc ulated in the 2009 
update as the average of the corresponding rates for the 12 preceding years (see 
Annex I, points 5.4.1 and 5.4.2 and Tables XIV and XV for more information). 
The value of the Real Discount Rate is 2.8%  compared to 3.1% used in the 2008 
actuarial assessment. The GSG is equal to 0.3%  instead of 0.4% used in 2008. Finally, 
an updated ISP table has been used, which gl obally represents a decrease in rates ( 1.3% 
instead of 1.5%) (See Annex I, point 5.4.3).  
5.4. Technical implementation of Annex XII to the Staff Regulations 
Technical questions raised by the implemen tation of Annex XII are dealt with by 
Eurostat in cooperation with national expe rts from the relevant departments of the 
Member States participating in the Wo rking Group on Article 83 of the Staff 
Regulations. The minutes of the meeting held in Luxembourg on 24 June 2009 (doc. 
20090624_Art83WG _09) is available from Eurostat. 
Eurostat also exchanges relevant informa tion on actuarial issues with international 
organisations such as the JPAS (Joint Pensions Administrative Section 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 e xpert with regard to the methodological 
implementation and the definition and calculation of the corresponding actuarial assumptions. 
The independent expert then conducted an actua rial 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 X II to the Staff Regulations. 
For the aspects not described explicitly in this Annex, th e independent expert checked 
their compliance with genera lly accepted actuarial prac tices. Concerning actuarial 
assumptions, the independent expert carried out investigations to ensure that the 
underlying data provided by Euro stat were used correctly. 
The executive summary of the assessment by th e independent expert is included in 
Annex II. 
EN    EN ANNEX I - COMPUTATION  
1. RELEVANT FIGURES FOR CALCULATING THE CONTRIBUTION RATE  
 
 
Table I. Breakdown of the contribution rate 
Service cost Total contribution rate 
(3/3) Staff contribution rate 
(1/3) 
Service cost for retirement 30.8% 10.3% 
Service cost for invalidity 2.0% 0.7% 
Service cost for death 1.1% 0.3% 
Total service cost 33.9% 11.3% 
 
Table II. Service cost and total amount of annual basic salaries 
Service cost Total (EUR million)  % 
- Service cost for retirement 1 013 91.0% 
- Service cost for invalidity  66 5.9% 
- Service cost for death  35 3.1% 
Total service cost 1 115 100.0% 
Total annual basic salaries and 
invalidity and termination allowances 3 288 100.0% 
 
EN    EN 2. SUMMARY OF MAIN VARIABLES  
The following tables show the values of th e main parameters (see Table III) and 
actuarial assumptions (see Table IV). Pleas e note that the tables only present an 
overview of the main variables and are no t exhaustive. Please refer to the Staff 
Regulations and the annexes thereto fo r precise and complete information. 
Table III. Parameters used in the actuarial assessment 
Parameter Value
Legal sourceStaff Regulations in force from 
01.05.2004
Reference date for the population (Annex XII Article 1) 31.12.2008
Maximum official retirement age (Staff Regulations 
Article 52)65 (67 on an exceptional basis)
Minimum official retirement age (Staff Regulations Article 
52 and Annex XIII Article 22)63 or before for officials in service 
before 01.05.2004
Minimum age for early retirement (Staff Regulations 
Article 52, Annex VIII Article 9 and Annex XIII Article 23)55 or before for officials in service 
before 01.05.2004
Category and grade for the minimum subsistence figure 
(Annex VIII Article 6)first step of grade 1
Maximum retirement pension (Staff Regulations Article 
77)70% of the basic salary at the 
retirement date
Annual accrual rate (Article 77 of the Staff Regulations 
and Article 21 of Annex XIII)1.9% or 2% for officials recruited before 
01.05.2004
Bonus for officials in service after the normal retirement 
age (Annex VIII Article 5 and Annex XIII Article 22)Barcelona incentive
Minimum retirement pension (Staff Regulations Article 
77)4% of the minimum subsistence figure 
per year of service
Invalidity allowance (Staff Regulations Article 78) 70% of the basic salary
Minimum invalidity allowance (Staff Regulations Article 
78)100% of the minimum subsistence 
figure
Reversion pension (Staff Regulations Article 79 and 
Annex VIII Article 18)60% of the retirement pension
Minimum reversionary pension (Staff Regulations Article 
79 and Annex VIII Article 18)35% of the last basic salary
Survivor's pension (Staff Regulations Article 79 and 
Annex VIII Article 17)60% of the retirement pension that 
would have been payable to the official 
Minimum survivor's pension (Staff Regulations Article 
79)35% of the last basic salary or minimum 
subsistence figure 
EN    EN Table IV. Actuarial assumptions 
Actuarial assumption Value
Average age difference between married men and 
women3 years
Probability of being married for men 84%
Probability of being married for women 38%Marital status status at evaluation dateCoefficient for orphan's and divorced spouse's pension 10%Annex VIII coefficient (correction coefficient) 0.0%Assumed retirement age 63 to 64Real discount rate ( RDR) 2.8% (See point 3)
General salary growth (GSG) 0.3% (See point 4)General pension revaluation (GPR) 0.3% (equal to the GSG)Individual salary progression (ISP) 2009 ISP tableMortality table (healthy people) 2008 ICSLTMortality table (Invalids)
Mortality rate corresponding to a person 3 
years older than healthy person
Invalidity table 2009 EU Invalidity table
 
Many of these actuarial assumptions are explained in the following points. Some of 
them have changed compared to the 2008 actuarial assessment. The following table 
summarises these changes: 
Table V. Changes in actuarial assumptions 
Variables 2008 assessment 2009 assessment
Remarks Figures Remarks Figures
Real Discount Rate (RDR) 1996 - 2007 average 3.1% 1996 - 2007 average 2.8%
General Salary Growth (GSG) 1996 - 2007 average 0.4% 1996 - 2007 average 0.3%Individual Salary Progr. (ISP) 
(1) 2008 ISP table 1.5% 2009 ISP table 1.3%
Invalidity 2008 EU Inval. 2009 EU Inval.
(1) Average of individual rates weighted by population as at 31.12.2008  
3. DEMOGRAPHIC PARAMETERS  
3.1. 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). On the other ha nd, Article 9 of 
this Annex provides that the popul ation of participants in the scheme is to be collected 
EN    EN 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 2008 of the 40 institutions and agen cies (37 were recorded at 31 December 
2007) whose officials are members of the PSEO. 
Table VI. Institutions and Agencies in the PSEO  
Abbr. Name
Institutions or assimilated or ganisms
COR COMMITEE OF THE REGIONS
CDCE COURT OF AUDITORS
COJED COURT OF JUSTICE OF EUROPEAN COMMUNITIES
CONSIL COUNCIL OF THE EUROPEAN UNION
CSC ECONOMIC AND SOCIAL COMMITTEECEC EUROPEAN COMMISSION
EDPS EUROPEAN DATA PROTECTION SUPERVISOR
EO EUROPEAN OMBUDSMAN
EUROPARL EUROPEAN PARLIAMENT
Agencies
FRONTEXAGENCY FOR THE MANAGEMENT OF OPERATIONAL CO-OPERATION 
AT EXTERNAL BORDERS OF MEMB
CFCA COMMUNITY FISHERIES CONTROL AGENC Y
CPVO COMMUNITY PLANT VARIETIES OFFICE
EACE A EDUCATION, AUDIOVISUAL AND CULTURE EXECUTIVE AGENC Y
EAR EUROPEAN AGENCY FOR RECONSTRUCTION
OSHA EUROPEAN AGENCY FOR SAFETY AND HEALTH AT WORK
EMEA EUROPEAN AGENCY FOR THE EVALUATION OF MEDICAL PRODUCTS
EASA EUROPEAN AVIATION SAFETY AGENC Y
ECDC EUROPEAN CENTRE FOR DISEASE PREVENTION AND CONTROL
CEDEFOPEUROPEAN CENTRE FOR THE DEVELOPMENT OF VOCATIONAL 
TRAINING
EEA EUROPEAN ENVIRONMENT AGENCY
EFSA EUROPEAN FOOD SECURITY AUTHORIT Y
EUROFOUNDEUROPEAN FOUNDATION FOR THE IMPROVEMENT OF LIVING AND 
WORKING CONDITIONS
EMSA EUROPEAN MARITIME SAFETY AGENCY
EMCDDA EUROPEAN MONITORING CENTRE FOR DRUGS AND DRUG-ADDICTION
EFRA EUROPEAN MONITORING CENTRE FOR RACISM AND XENOPHOBI A
ENIS A EUROPEAN NETWORK AND INFORMATION SECURITY AGENC Y
CEPOL EUROPEAN POLICE COLLEGE
ERA EUROPEAN RAILWAYS AGENC Y
ERC EUROPEAN RESEARCH COUNCIL EXECUTIVE AGENCY
ETF EUROPEAN TRAINING FOUNDATION
EACI EXECUTIVE AGENCY FOR CONPETITIVENESS AND INNOVATION
EAA EXECUTIVE AGENCY FOR THE PUBLIC HEALTH PROGRAM
JET JOINT EUROPEAN TORUS
EUROJUST JUDICIAL COOPERATION
OHIM OFFICE FOR HARMONISATION IN THE INTERNAL MARKET
REA RESEARCH EXECUTIVE AGENCY
ECHA THE EUROPEAN CHEMICALS AGENC Y
ITERTHE EUROPEAN JOINT UNDERTAKING FOR ITER AND THE 
DEVELOPMENT OF FUSION ENERG Y
TNT-T THE TRANS-EUROPEAN TRASNPORT NETWORK EXECUTIVE AGENCY
CDT TRANSLATION CENTRE FOR BODIES OF THE EUROPEAN UNION  
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”. Conseq uently, 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 benefici aries of an allowance for termination of 
service. 
EN    EN Personnel data were collected from the NAP2 (New Application for Pay), PMO3 and 
directly from institutions and agencies, a nd imported into the Eurostat database. The 
data were checked to guarantee a high le vel of quality. The actuarial assessment is 
based on the best output from the Eurost at database at the calculation date. 
Table VII. Reference population by administrative status 
Population as at 31.12.2008
Contributing members Total %
Active
- Officials 34 509 69.1%
- Temporary staff 7 044 14.1%- Contract staff 7 654 15.3%
Non-active staff  (1)  746 1.5%
Total population 49 953 100.0%
(1). Non-active status (Article 41), retirement in the interests of the service 
(Article 50), termination of service under special measures ("degagement"), invalids who receive an invalidity allowance under Article 78.
 
Table VIII. Reference population by institution or agency 
Institution or Agency Total %
European Commission 31 340  63%
European Parliament 6 320  13%Council of the European Union 3 362  7%Court of Justice of the European Communities 1 998  4%Court of Auditors  876  2%Economic and Social Committee  746  1%Committee of the Regions  524  1%
Other sma ll institutions an d decen tralised Commun ity 
agencies4 787  10%
Total 49 953  100% 
Figure I. Reference population by age 
                                                 
2 The NAP 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. 
3 PMO use the Sysper database of the Commission to store data about transfers of pension rights of the staff 
of the Commission and agencies, and data about pensioners. 
EN    EN 5,100
4,600
4,100
3,600
3,100
2,600
2,100
1,600
1,100600100400900
1,400
1,900
2,400
2,900
3,400
3,900
4,400
4,90020 - 2425 - 2930 - 3435 - 3940 - 4445 - 4950 - 5455 - 5960 - 64>64Ages
Number of personsMen:      22580
Women: 27373
 
Table IX. Change in the population of  contributing members as at 31.12.2008  
compared to the population as at 31.12.2007 
Changes Total
Reference population used in the 2008 assessment (contribuiting 
members as at 31.12.2007)47 596  
Contributing members who left the pension scheme or became 
pensioners -1 954  
New contributing members as at 31.12.2008 4 311  
Reference population used in the 2009 assessment (contribuiting 
members as at 31.12.2008)49 953  
Net change 2 357  
 
This increase in the population is mainly ex plained by the recruitment of contract agents 
and officials and temporary agents from the new Member States. 
3.2. Assumed retirement age 
As stipulated in Article 4 of  Annex XII to the Staff Regulat ions, it is assumed that all 
retirements will occur at a fixed average age ( r). The average retirement age may be 
different by group of staff. 
EN    EN Table X. Assumed retirement age and Barcelona incentive by age group of officials 
Staff group (age and years of 
service as at 30.04.2004)Barcelona 
incentiveBarcelona 
incentive 
maximumNormal 
retirement 
ageAssumed retirement 
age (4)
(1) (2) (3) Actives Invalids
Group 1 Old Staff Regulations 2.00% 60  63  65  
Group 2>= 50 years old or    >= 
20 years of service2.00% 60  63  63  
Group 340 - 49 years old and < 
20 years of service2.00% 3.00% 4.50% 61  63  63  
Group 435 - 39 years old and < 
20 years of service2.00% 2.75% 4.00% 62  63  63  
Group 530 - 34 years old and < 
20 years of service2.00% 2.50% 3.50% 63  64  64  
Group 6< 30 years old and     < 
20 years of service2.00% 2.00% - 63  64  64  
Group 7New officials (after 
30.04.2004)1.90% 2.00% - 63  64  64  Annual 
accrual rate
(5)
(1) The Barcelona incentive corresponds to an increase in pension expressed as a percentage of the last basic salary 
(Article 5 of Annex VIII and Article 22 of Annex XIII).
(2)  The Barcelona incentive maximum is a percentage of the total pension rights acquired by an official at the age of 
60 (Article 5 of Annex VIII and Article 22 of Annex XIII).
This column shows these average ages by staff group, which have been deducted from the observations in 
accordance with Article 9 of Annex XII.
(5)  Officials, aged 50 years or over or with 20 or more years service as at 30/04/2004, who remain in service after the 
normal retirement age are entitled, for each year worked after that age, to an increase in 
their pension equal to 5% of the amount of the pension rights acquired at the age of 60 (the same premise was 
applied in the past under the former Staff Regulations)..For example, the Barcelona incentive for officials aged between 40 and 49 is 3% of the last basic salary but not 
exceeding 4.5% of the pension rights acquired by those officials at the age of 60.
(3)  The age in this column is the simple average of ages from the table detailed in Article 22 of Annex XII, rounded to 
entire year. This average is calculated only to facilitate the presentation in this table.
In practice, institutions apply the table detailed in Article 22 of Annex XIII when calculating individual rights. Eurostat 
does not use this column when calculating the contribution rate for pension; assumed retirement ages detailed in 
columns (4) are used instead.
(4)  In accordance with to Article 3 of Annex XII, it is assumed that all retirements (except for invalidity) will occur at a 
fixed average age.
 
3.3. Invalidity table  
A first invalidity table (2004-EU Invalidity table) was used in the 2004, 2005 and 2006 
assessments of the PSEO. This invalidity table was presented to the Article 83 Working Group at its 7 June 2004 meeting. 
The table was updated on the occasion of the 2007 actuarial assessment to take account 
of the evolution of  beneficiaries of invalidity allowance  (a new category of population 
under the new Staff Regulation in force from 1 May 2004). This new table was 
presented to the Article 83 Working Group at its 26 June 2007 meeting (see document 
20070623 Art83 WG 07 Assumptions EN, ava ilable on CIRCA) and it was decided to 
update the table each year us ing as input a moving average of 5 years of invalidity 
observation. 
The following table shows the number of invalids from 2004 to 2008. 
Table XI. Invalids by year 
EN    EN Year Invalids
2004 103
2005 1222006 1082007 88
2008 89
Total 510
 
The following graph shows the di stribution of the invalids above by age. A considerable 
increase in invalidity occurs between ages 44 and 60. Invalidity is prac tically nil before 
the age of 35.  
Figure II. New invalids by age — 2004 to 2008 total  
New invalids by age
(2004 to 2008 total)
05101520253035
20
22
24
26
28303234
36
384042
44
464850
52
54565860
62
6466Invalid's age sNumber of invalids
 
These invalidity observations have been used to update the invalidity table by sex 
(2009-EU Invalidity table). The following table is an extract  from the unisex version of 
the table. The unisex version is only used for presentation, while the complete table by 
sex is used in computation. 
Table XII. 2008-EU Invalidity table — Unisex version 
AgeInvalidity (probability of 
becoming an invalid)
x q'x
20 0.000055
25 0.00007030 0.00018235 0.00059740 0.00143045 0.00264450 0.00393555 0.00600260 0.006132
65 0.003241
 
EN    EN 3.4. Life table of healthy persons 
The life table used for the calculation was updated in 2008 (2008 ISCLT table) on the 
occasion of the five-yearly assessment of th e actuarial balance of the pension scheme. 
The methodology used to set up this life tabl e was presented to the Article 83 Working 
Group at the 27 June 2008 meeting ( document 20080627 Art83_05, available from 
Eurostat). The 2008 ISCLT life table must be used at least until the next five-yearly 
assessment in 2013. 
Consequently, the 2008 ICSLT has been used in the 2009 pension assessment. 
The following table is an extract from this table:  
Table XIII. 2008 ICSLT 
Men Women
AgeDying 
probabilityLife 
expectancyDeseaseLiving 
individualsDying probabilityLife 
expectancy
x, y qx ex dx lx q y ey
40 0.00063370 44 57 98 573 0.00054775 46
45 0.00106107 39  94 98 187 0.00092086 42
50 0.00176523 35 156 97 542 0.00152344 37
55 0.00282667 30 250 96 494 0.00242203 3260 0.00481751 25  411 94 813 0.00372321 28
65 0.00838934 21 696 91 962 0.00605132 23
70 0.01458993 17 1 154 87 190 0.01074871 1975 0.02531453 13 1 844 79 451 0.01863843 15
80 0.04374552 10 2 758 67 558 0.03307728 12
85 0.07506895 8 3 681 50 912 0.05836406 9
90 0.12727809 5 4 026 31 080 0.10193574 6
 
3.5. 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. Eurocontro l applies the mortality rate corresponding to 
a healthy person 3 years older than an in valid’s age). This approach cannot be 
confirmed in the case of European civil serv ants as the number of invalids is too small. 
Eurostat considers this approach very logica l and has applied the same actuarial practice 
in its own actuarial calculations. 
The use of this approach makes hardly a ny change in the contribution because the 
probability of an active staff member  becoming invalid is very small. 
The implementation of this approach in the 2008 pension assessment had a negligible 
impact, close to 0 percentage point s, on the pension contribution rate. 
3.6. Average age difference between men and women  
The average age difference between men and women (3 years) that has been applied 
from 2004 in actuarial calculations should be us ed in future assessmen ts. The result of a 
test based on population from 2004 to 2007 confirmed that this actuarial assumption 
corresponds to reality. The te st showed that on averag e married men are 3.01 years 
older than their partners and married women 3.18 years younger than their partners. 
EN    EN 3.7. Probability of being married for men and women 
In 2008 Eurostat analysed the recent populatio n of officials and ex -officials older than 
59 years and calculated the probability of th em being married. The probabilities found 
for men and women are:  
0.84 for men (0.8 to one decimal place) 
0.38 for women (0.4 to one decimal place) 
These updated probabilities were used in th e 2008 and in this 2009 pension assessment. 
4. ECONOMIC PARAMETERS  
4.1. Real Discount Rate (RDR) 
Annex XII, Article 10 of the St aff Regulations provides that:  
1. The interest rates to be taken into consid eration for the actuaria l calculations shall 
be based on the observed average annual interest rates on the long-term public debt of Member States as published by the Commi ssion. An appropriate consumer price index 
shall be used to calculate the corresponding in terest rate net of in flation as needed for 
the actuarial calculations.  
2. The effective annual rate to be taken into consideration for the actuarial calculations 
shall be the average of the real average interest rates for the 12 years preceding the current year.  
Consequently, Real Discount Rates (RDRs) from 1997 until 2008 have to be used in the 
2009 assessment of the PSEO.  
Nominal discount rate
 (average of 1997 to 2008 nominal yields of Euro area zero-
coupon government bonds with a ma turity of 21 years, 21 y ears being the duration of 
the scheme, the rate in 2008 as produced by the ECB being 4.8%): 5.1%   
Inflation rate  (average of 1997 to 2008 appropriate c onsumer price indices, the HICP of 
the EU area in 2008 being 3.7%): 2.2%  
Real Discount Rate  (average of 1997 to  2008 Real Discount Rates, the last being 
calculated as 100*(100+NDR)/(100+IR)-100)): 2.8%  (it was 3.1% in the assessment at 
31.12.2007). 
The 12-year moving average of Real Discount  Rates (RDRs) that has been calculated 
this time (2.8%) has been used in the present assessment of the PSEO. 
Table XIV. Real Disc ount Rate (RDR)  
EN    EN YearNominal rate 
(NDR)Inflationrate  (IR) Real discount rate (RDR)
(1) (2) (3)
1996 7.2 2.6 4.5
1997 6.1 2.1 3.9
1998 4.9 1.7 3.1
1999 5.6 1.1 4.5
2000 5.9 2.4 3.4
2001 5.7 2.5 3.1
2002 5.5 2.2 3.2
2003 5.1 2.0 3.0
2004 5.0 2.1 2.8
2005 4.0 2.2 1.8
2006 (4) 4.2 2.2 2.0
2007 4.5 2.3 2.2
2008 4.8 3.7 1.1
Aver. 1996 - 2007 5.3 2.1 3.1
Aver. 1997 - 2008 5.1 2.2 2.8
(1) 
(2) 
(3) 
(4) Till 1998: long-term government borrowing rates. Since 1999: Euro zero-coupon 
government bond curve with a maturity of 21 years.
Till 1998: National Accounts private consumption deflator. Since 1999: Harmonised 
Index of Consumer Prices (HICP).
The following formula is used: RDR = 100*(100+NDR)/(100+IR)-100
Nominal rate estimated by Eurostat (data not available at ECB)
 
4.2. General Salary Growth (GSG) 
As for the discount rate, Annex XII contai ns specific rules for calculating General 
Salary Growth. Article 11 stipulates on the one hand that the annua l change in salary 
scales to be used for the actuarial calcula tions must be based on the specific indicator 
(SI) and, on the other hand, that the effective annual rate is to  be the average of the net 
SIs for the 12 years preceding the current year.  
As the net specific indicator obtained in  2008 is -1.3%, the 12-year moving average 
from 1997 to 2008 is 0.3% (see Table V). Th e estimate of the GSG consequently 
decreases between 2007 and 2008 from 0.4% to 0.3%. 
Table XV. General Salary Growth  
Year Specific Indicator
1996 -0.1
1997 0.7
1998 0.51999 1.8
2000 -0.1
2001 0.62002 1.72003 1.1
2004 -1.2
2005 0.02006 0.2
2007 -0.4
2008 -1.3
Aver. 1996 - 2007
0.4
Aver. 1997 - 2008 0.3 
EN    EN 4.3. Individual Salary Progression (ISP) 
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 has a significant impact on the contri bution rate, but not as much as the RDR 
and GSG.  
Furthermore, with the introduction of the new Staff Regulations  on 1.5.2004, the career 
progression of EU officials has been comple tely reviewed. Annex XIII to these Staff 
Regulations includes transitional measures which made the determination of this 
assumption quite complicated.  
2008 ISP rates to be applied to officials a nd temporary staff from agencies (ISP groups 
1 and 2) have been updated to take account  of the observed promotion rates from 2005 
to 2008 (methodology agreed at th e June 2006 Art83WG meeting). 
The 2008 fixed ISP rate of 0.4% to be applie d to temporary staff from Institutions (ISP 
groups 3 and 5) remains unchanged. 
The former ISP group 5 as been split in tw o: ISP group 5 (contract ual agents having a 
contract for an indefinite period) and ISP group 6 (contract ual agents having a contract 
for a fixed period) this divisi on is need to improve calculation in the future (at the 
present is not possible since the duration of th e contract is not available at the Eurostat 
database). A fixed ISP rate of 0.2% has been used in this 2009 assessment (same rate as this used in the 2008 assessment) 
Table XVI. Weighted ISP rates by gr oup of active population and grade 
Grades Population groups for ISP calculation (1)Average
123456
18 xxxx 0 . 2 % 0 . 2 % 0.2%
17 xxxx 0 . 2 % 0 . 2 % 0.2%
16 0.2% 1.0% 0.4% 0.4% 0.2% 0.2% 0.2%
15 0.8% 1.0% 0.4% 0.4% 0.2% 0.2% 0.5%
14 0.8% 1.4% 0.4% 0.4% 0.2% 0.2% 0.5%
13 1.3% 0.4% 0.4% 0.4% 0.2% 0.2% 0.5%
12 1.1% 1.3% 0.4% 0.4% 0.2% 0.2% 1.1%
11 1.3% 1.5% 0.4% 0.4% 0.2% 0.2% 1.2%
10 1.0% 1.9% 0.4% 0.4% 0.2% 0.2% 0.9%
9 1.9% 1.7% 0.4% 0.4% 0.2% 0.2% 1.5%
8 1.6% 2.0% 0.4% 0.4% 0.2% 0.2% 1.2%
7 1.8% 2.2% 0.4% 0.4% 0.2% 0.2% 1.9%
6 1.6% 2.0% 0.4% 0.4% 0.2% 0.2% 1.6%
5 1.5% 1.9% 0.4% 0.4% 0.2% 0.2% 1.3%
4 1.7% 2.0% 0.4% 0.4% 0.2% 0.2% 1.3%
3 2.0% 2.1% 0.4% 0.4% x x 1.7%
2 2.1% 2.3% 0.4% 0.4% 0.2% 0.2% 1.6%
1 x 2.1% 0.4% 0.4% 0.2% 0.2% 1.3%
Average 1.5% 1.9% 0.4% 0.4% 0.2% 0.2% 1.3%  
(x)  No weighted average for ISP is calculated (grey cells in the table) where
   nobody is present in the reference population for the corresponding grade and ISP
   group. In particular, grades 17 and 18 concern only contract staff.
(1)  Population groups for ISP calculation:
  1. Officials, together with temporary staff of agencies, recruited before 01.05.2004
  2. Officials, together with temporary staff of agencies, recruited from 01.05.2004 onwards  3. Temporary staff of institutions recruited before 01.05.2004  4. Temporary staff of institutions recruited from 01.05.2004 onwards  5. Contract staff  recruited from 01.05.2004 onwards having a contract for an indefinite period  6. Contract staff  recruited from 01.05.2004 onwards having a contract for a fixed period
 
EN    EN ISP rates in the table above are the average of ISP rates weighted by the population in 
each grade. These average rates are calc ulated for publication purposes only, the 
detailed rates by grade and years to retire being used in computation. 
4.4. 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 afte r the death of the surviving s pouse (or of the official if 
there is no surviving spouse) and any pens ion 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 2009 actuarial assessment.  
5. ANNUITIES  
Articles 6 to 8 of Annex XII to the Staff Regul ations refer to the annuities used in the 
calculation. The values of these annuities according to age are presented below. 
In order to comply with Commission polic y on equal opportunitie s, values are not 
presented by sex. However, Eurostat conduc ted its analyses taki ng into account all 
relevant features of the population, includi ng sex. The figures are aggregated by 
weighted averages only for presentation in this report. 
The table below was calculated using: 
– the Real Discount Rate (RDR) from Table XIV, 
– the General Salary Growth (GSG) from Table XV, 
– an assumed retirement age ( r) equal to 64 years of age for officials younger than 35 
on the reference date (31.12.2003) and equal to 63 years of age for the others, 
where: x is the age of the official, 
y is the age of the official’s spouse, 
m = r – x  (number of years between the official’s age and the assumed retirement age), 
y = x ± 3 according to the sex of the official. 
Table XVII. Some annuities in accordance with Articles 6 to 8 of Annex XII to the Staff 
Regulations 
EN    EN Immediate
Age
annuity at age xreversionary annuity 
at ages x and yannuity at age 
xreversionary annuity 
at ages x and yAge  annuity at 
age y
xm|axm | axy ax axy y ay
21 4.89503 1.04411 25.89045 0.27472 21 31.44175
25 5.51491 1.07130 24.39757 0.27219 25 30.5773530 6.30620 1.29743 22.30181 0.28016 30 29.2632435 7.64007 1.67565 19.45318 0.26173 35 27.7368540 8.76661 1.96792 16.72715 0.25132 40 26.09095
45 10.08812 2.27359 13.66388 0.22032 45 24.27903
50 11.60056 2.69345 10.22019 0.16521 50 22.2453455 13.46470 3.00879 6.34086 0.08731 55 20.0908760 15.65734 3.45302 1.93682 0.01457 60 17.68825
63 16.15370 3.71119 0.00000 0.00000 63 16.15370Immediate deferred I mmediate temporary 
 
  m|ax is described in article 6 § 3a
  m|axy is described in article 6 § 3b
      ax is described in article 7 § 2a
      axy is described in article 7 § 2b
      ay is described in article 8 § 2
EN    EN ANNEX II – INDEPENDENT EXAMINATION  
An independent expert conducted an actuari al examination of th e 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 elements not 
described explicitly in this Annex, the i ndependent expert checked their compliance 
with generally accepted actua rial practices. Regarding th e actuarial assumptions, the 
independent expert carried out investigations to ensure that the underlying data provided 
by Eurostat were used correctly. 
The executive summary from the independent expert report on the actuarial examination 
is state that: 
"… as an independent exper t, has conducted an actuar ial examination of the 2009 
update of the 2004 actuarial assess ment of the pension scheme  referred to in Article 
83a (3) of the new Staff Re gulations for which Eurost at 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 XI I, we did not detect any elements likely 
to cast doubt that the calcula tions 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 prac tices and we did not de tect any significant 
difference with the methodology and the assumptions we  would have chosen ourselves 
to perform the calculations. 
… has no reasons to doubt that  the official’s contribution rate (11.3%) calculated by 
Eurostat is a sufficiently accura te estimate of the reality". 
The complete independent expert report on th e actuarial examination of the contribution 
rate is available from Eurostat.