COMMUNICATION FROM THE COMMISSION following up the Commission's communication of 26 July 2000 on matching its activities with its human resources

1. Introduction

In its White Paper of March 2000 the Commission announced its intention to undertake a reallocation of human resources across its departments with a view to concentrating activities on its core policy objectives.

On 26 July 2000, it adopted the conclusions of the review by the Peer Group charged with carrying out a comprehensive assessment of the Commission's current activities and putting forward an action plan. These conclusions clearly indicate that, over and above the rationalisation efforts carried out already in 1999 and 2000, the staff numbers assigned to priority activities continue to be insufficient, with the shortfall being estimated at 1 254 posts.

Two thirds of these requirements can be met from further rationalisation (discontinuation or scaling back of activities, productivity gains) or by internal redeployment. Targeted and effective accompanying measures are to be designed to allow redeployed staff to perform other, higher priority, activities. In addition to these accompanying measures, termination-of-service arrangements are to be available under which the Commission would be able to offer reasonable severance conditions to officials whose skills are deemed not to be in line with the duties to be performed.

Legally the scheme will take the form of a Council Regulation. Implementing procedures will be laid down later. The termination-of-service Regulation is to be accompanied by two further proposals for Council Regulations amending Regulation No 260/68 (EEC, Euratom, ECSC) laying down the conditions for applying Community tax to those receiving the termination-of-service allowance and Regulation (Euratom, ECSC, EEC) No 549/69 determining the categories of officials and other servants of the European Communities to whom the provisions of Article 13, in particular, of the Protocol on the Privileges and Immunities of the Communities apply.

2. The Council Regulation

The Council Regulation should in particular:

*limit the arrangements to officials, with the exception of those in Grades A1 and A2, who have reached the age of 50 and have a minimum of 10 years of service, regardless of the budget (operating or research) from which they are paid;

*fix the total number of officials to whom the measure may apply at 600 (300 in 2001 and 300 in 2002);

*lay down that the Commission is to select the officials to whom the arrangements will apply from among those requesting termination of service;

*provide that selection will take place after consultation of the Joint Committee provided for in the Staff Regulations and consisting of representatives of the administration and the staff in equal numbers;

*establish the criteria to be applied by the Commission when making the selection, which would concern first of all officials affected by the reorganisation measures, in particular redeployment, whose skills are deemed not to be in line with the duties to be performed; the amount of training needed for the official to undertake new tasks, age, ability, performance, conduct in the service, family circumstances and length of service will be taken into account;

*establish entitlement to a monthly allowance to be set as a percentage of the last basic salary, ranging from 60% to 70% (with an average of 65% for the existing target group of officials as a whole) depending on age and length of service at the time of departure. Entitlement will cease when the former official reaches the age of 65 or in any event as soon as the former official is eligible for the maximum retirement pension of 70% (Article 77 of the Staff Regulations), at which point he/she will receive a retirement pension;

*lay down that where the allowance combined with income from any new employment exceeds the gross remuneration last received, the amount of the excess will be deducted from the allowance;

*lay down that family allowances will be paid consisting of dependent child allowance (full flat-rate amount), education allowance (full flat-rate amount) and household allowance (in proportion to the allowance subject to the minimum provided for in the Staff Regulations);

*lay down that the former officials and the persons covered by their insurance will be able to benefit from the sickness insurance scheme on payment of a contribution calculated on the basis of the allowance;

*lay down that former officials will be able to acquire further retirement pension rights for a maximum of six years, provided that during that period they contribute to the retirement pension scheme on the basis of their previous basic salary. In the event of death during the period of entitlement, the surviving spouse's pension will be paid.

3. Implementation of the scheme

The Council Regulation will allow any official to apply under the scheme. The Commission will select from among the officials applying those who fulfil the criteria set out in the Regulation on the basis of the interests of the service.