Communication from the Commission following up the Commission's communication of 26 July 2000 on matching its activities with its human resources
Date: 2001-01-31
Institutions: European Commission
Subjects: European Commission, European official, administrative structures, personnel administration, vocational retraining

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 31.1.2001
COM(2001) 50 final

2001/0027 (CNS)
2001/0028 (CNS)

COMMUNICATION FROM THE COMMISSION

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

Proposal for a

COUNCIL REGULATION

introducing special measures to terminate the service of officials of the Commission of
the European Communities as part of the reform of the Commission

Proposal for a

COUNCIL REGULATION

amending Regulation (EEC, Euratom, ECSC) No 260/68 laying down the conditions and
procedure for applying the tax for the benefit of the European Communities

Proposal for a

COUNCIL REGULATION

amending 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 12, the second paragraph of Article 13 and Article 14 of the Protocol on the
Privileges and Immunities of the Communities apply

(presented by the Commission)

COMMUNICATION FROM THE COMMISSION

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

2

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.

from further

these requirements can be met

Two thirds of
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
laying down the conditions for applying
No 260/68 (EEC, Euratom, ECSC)
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;

3

• 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
from the sickness insurance scheme on payment of a

be able to benefit
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.

4

Proposal for a

COUNCIL REGULATION

introducing special measures to terminate the service of officials of the Commission of
the European Communities as part of the reform of the Commission

5

EXPLANATORY MEMORANDUM

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.

The Peer Group charged with undertaking a comprehensive assessment of the Commission's
current activities delivered its report in July 2000. The 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.

these requirements will be met

rationalisation efforts
Two thirds of
(discontinuation or scaling back of activities, productivity gains) or by internal redeployment.
Targeted and effective accompanying measures are to be designed to enable redeployed staff
to perform other, higher priority activities. These measures are of vital importance to the
success of the redeployment exercise.

from further

Training is one of them. The training requirements for ensuring the most effective possible
redeployment of these officials will be identified and the necessary means put in place.
However, the skills of some of the staff concerned, in particular older ones, may not be in line
with the duties to be performed.

A scheme that allows these officials to leave the institution before the normal retirement age
and makes it possible for people with skills that are in short supply within the Commission to
be recruited is another essential accompanying measure. It is justified also by the need for
staff with new skill profiles and the need to rebalance the establishment plan to make way for
more A/LA and B officials.

On the basis of an analysis of the specialised profiles and skills required in the Commission,
the number of staff to whom the scheme would apply has been estimated at 600 spread over a
period of two years. The purpose of this proposal therefore is to authorise a termination-of-
service scheme for 600 Commission officials, with 300 departing in 2001 and 300 in 2002.

Provided the impact on the budget is neutral, the savings generated by the scheme (the
difference between the cost of total remuneration and the cost of the termination-of-service
allowance) should allow around 258 new officials to be recruited.

6

2001/0027 (CNS)

Proposal for a

COUNCIL REGULATION

introducing special measures to terminate the service of officials of the Commission of
the European Communities as part of the reform of the Commission

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 283 thereof,

Having regard to the proposal made by the Commission after consulting the Staff Regulations
Committee in accordance with Article 10a of the Staff Regulations of Officials of the
European Communities,1

Having regard to the opinion of the European Parliament,2

Having regard to the opinion of the Court of Justice,3

Having regard to the opinion of the Court of Auditors,4

Whereas:

(1)

(2)

(3)

(4)

(5)

1

2

3

4

5

A reform is now under way in the Commission designed in particular to refocus the
use of its resources on priority activities.

A communication from the Commission5 has indicated, despite the successes already
achieved in 1999 and 2000, some shortfalls in the staff assigned to certain priority
activities.

The Commission intends to meet a significant part of those needs through internal
rationalisation and redeployments.

The Commission intends to take steps, mainly through training, to help redeployed
staff to adjust in the most satisfactory and effective way possible.

However, the skills of some officials, particularly older members of staff, are deemed
not to be in line with the duties to be performed.

Hereinafter called the "Staff Regulations".
OJ C
OJ C
OJ C
Doc. No 6343/00 INST 4.

7

(6)

The Commission needs new skill profiles and a rebalancing of the establishment plan,
but the number of officials retiring in the normal way will not be sufficient to allow
the necessary skills to be acquired through recruiting new staff within a satisfactory
timescale.

(7)

Special measures should accordingly be adopted with regard to termination of service,

HAS ADOPTED THIS REGULATION:

Article 1

The European Commission is hereby authorised, in the interests of the service and in order to
take account of the need to renew skills arising from the refocusing of the use of its resources
on priority activities, to adopt measures up to 31 December 2002 for terminating the service
within the meaning of Article 47 of the Staff Regulations of officials who have reached the
age of 50 and have completed at least 10 years' service, regardless of the budget (operating or
research) from which they are paid, with the exception of those in Grades A1 and A2, under
the conditions specified below.

The total number of officials to be covered by the measures referred to in Article 1 shall be
600. For 2001 the number shall be 300.

Article 2

Article 3

Within the ceiling laid down in Article 2, and with due regard to the interests of the service,
the Commission, after having consulted the Joint Committee, shall select from among the
officials applying for termination of their service under Article 1 those to whom it wishes to
apply this measure.

The Commission shall consider as a priority officials affected by the reorganisation measures
in particular
and measures for refocusing the use of its resources on priority activities,
redeployment, whose skills are deemed not to be in line with the duties to be performed. It
shall take account of the amount of training necessary for the officials to undertake new tasks,
their age, ability, performance, conduct in the service, family circumstances and length of
service.

Article 4

1.

Former officials whose service is terminated under Article 1 shall be entitled to a
monthly allowance set as a percentage of the last basic salary received according to
age and length of service at the time of departure as shown in the table in Annex I to
this Regulation. The last basic salary shall be that for the grade and step held by the
official at the time of departure, determined by reference to the table in Article 66 of
the Staff Regulations in force on the first day of the month for which the allowance is
payable.

8

2.

3.

4.

5.

Such former officials may at any time, at their own request, receive a retirement
pension on the terms and conditions laid down in the Staff Regulations. Entitlement
to the allowance shall then cease. It shall cease in any event not later than the last day
of the month in which the former official reaches the age of 65 years or as soon as
the former official is eligible before that age for the maximum retirement pension of
70% (Article 77 of the Staff Regulations).

At that point the former official shall automatically receive a retirement pension,
which shall take effect on the first day of the calendar month following the month in
which the allowance was paid for the last time.

The allowance provided for in paragraph 1 shall be adjusted by the weighting fixed
for the country situated inside the Community in which the recipient proves that he is
resident.

If the recipient resides in a country situated outside the Community, the weighting to
be applied to the allowance shall be 100.

The allowance shall be expressed in euro. It shall be paid in the currency of the
country of residence of the recipient. However, if it is subject to the weighting of 100
under the second subparagraph, it shall be paid in euro.

An allowance paid in a currency other than euro shall be calculated on the basis of
the exchange rates referred to in the second paragraph of Article 63 of the Staff
Regulations.

Where gross income accruing to the former official from any new employment, when
combined with the allowance provided for in paragraph 1, exceeds the total gross
remuneration last received by the official, determined by reference to the salary
scales in force on the first day of the month for which the allowance is payable, the
amount of the excess shall be deducted from that allowance. That remuneration shall
be weighted as provided for in paragraph 3.

Gross income and total gross remuneration last received, as referred to above, mean
sums paid after deduction of social security contributions but before deduction of tax.

The former official concerned shall provide any written proof which may be required
and shall notify the institution of any factor which may affect his or her right to the
allowance, failing which he or she shall be liable to disciplinary action as provided
for in Article 86 of the Staff Regulations.

As set out in Article 67 of the Staff Regulations and Articles 1, 2 and 3 of Annex VII
thereto, the dependent child allowance shall be payable either to the recipient of the
allowance provided for in paragraph 1 or to the person or persons to whom custody
of the child or children has been entrusted by law or by an order of court or of the
competent administrative authority; the household allowance shall be calculated by
reference to the allowance provided for in paragraph 1.

9

6.

7.

8.

9.

Recipients of the allowance shall be entitled, in respect of themselves and persons
covered by their insurance, to benefits under the sickness insurance scheme provided
for in Article 72 of the Staff Regulations provided they pay the relevant contribution,
calculated on the basis of the allowance provided for in paragraph 1, and are not
covered by another sickness insurance scheme by virtue of legal or statutory
provisions.

During the period for which they are entitled to receive the allowance, but for not
more than six years, former officials shall continue to acquire further rights to
retirement pension based on the salary carried by their grade and step, provided that
the contribution provided for in the Staff Regulations by reference to that salary is
paid during that period and provided that the total pension does not exceed the
maximum specified in the second paragraph of Article 77 of the Staff Regulations.
For the purposes of Article 5 of Annex VIII to the Staff Regulations, such period
shall be considered to be a period of service.

Subject to Articles 1(1) and 22 of Annex VIII to the Staff Regulations, the surviving
spouse of a former official who dies while in receipt of the allowance provided for in
paragraph 1 shall be entitled, provided that they have been the official's spouse for at
least one year when he or she left the service of the Commission, to a survivor's
pension equal to 60% of the retirement pension which, irrespective of length of
service or age, would have been payable to the former official if he or she had
qualified for it at the time of death.

The survivor's pension referred to in the previous subparagraph shall not be less than
the amounts specified in the second paragraph of Article 79 of the Staff Regulations.
However, in no case may it exceed the amount of the retirement pension to which the
former official would have been entitled had he or she survived and been granted a
retirement pension when ceasing to be eligible for the allowance referred to above.

The minimum duration of the marriage as referred to in the first subparagraph shall
not be taken into account if there are one or more children of a marriage contracted
by the official before he or she left the service provided that the surviving spouse
maintains or has maintained those children.

Nor shall the duration of the marriage be taken into account if the former official's
death resulted from one of the circumstances referred to at the end of the second
paragraph of Article 17 of Annex VIII to the Staff Regulations.

On the death of a former official
in receipt of the allowance provided for
paragraph 1, dependent children within the meaning of Article 2 of Annex VII to the
Staff Regulations shall be entitled to an orphan's pension on the conditions set out in
the first, second and third paragraphs of Article 80 of the Staff Regulations and in
Article 21 of Annex VIII to the Staff Regulations.

10

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

Article 5

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

Done at Brussels,

For the Council
The President

11

ANNEX I

ALLOWANCE PERCENTAGE

The allowance percentage referred to in Article 4(1) of this Regulation will be determined on
the basis of the age and length of service of officials at the time of departure as shown in the
table below:

Length of service
from 10 to 19 years
from 20 to 29 years
30 years and over

Age

from 50 to
52 years

from 53 to
55 years

from 56 to
58 years

from 59 to
61 years

from 62 to
64 years

60.0%
62.5%
65.0%

62.5%
65.0%
67.5%

65.0%
67.5%
70.0%

67.5%
70.0%
70.0%

70.0%
70.0%
70.0%

Level of allowance depending on age and length of service

Age and length of service will be considered in relation to a trigger date to be specified when
the call for applications for the termination-of-service arrangements is issued.

Applying these conditions to the existing target group of officials gives an average allowance
of 65%.

12

ANNEX II

BASIS FOR CALCULATING BUDGET NEUTRALITY

This Annex sets out in detail the parameters for calculating the particulars shown in the
budget statement. The starting point is that the operation should be budget-neutral. The
method of calculation involves determining the savings to be achieved through a termination-
of-service scheme for 600 officials (difference between the cost of their remuneration as
officials in active employment and the allowance they would receive after leaving the service)
and the number of new staff that these savings would allow to be recruited. This approach
applies during the period for which the allowance is payable, up to the time the former
officials become eligible under the pension scheme.

Parameter 1: Target group

The scheme will apply to 600 members of staff, most of whom will have reached the end of
their career bracket ('fin de carrière'). Based on the existing target group of officials, the
breakdown would be roughly as follows:

A/LA3 officials

A/LA4 – A/LA5 officials

B1 - B2 officials

C1 - C2 officials

D1 - D2 officials

Total

2001

2002

Total

22

134

45

80

19

22

134

45

80

19

300

300

44

268

90

160

38

600

The references to
grades A 3, A 4, A 5
and A 7 in this Annex
refer to both Category
A and LA (the
Language Service)

Parameter 2 : Average profiles of officials availing themselves of the scheme

The costs are based on the standard profiles below:

A3

A4 - A5

B1 - B2

C1 - C2

D1 - D2

A3/3 official, married, with no dependent children, recruited at 32

A4/2 official, married, with no dependent children, recruited at 32

B1/2 official, married, with no dependent children, recruited at 30

C1/2 official, married, with no dependent children, recruited at 28

D1/5 official, married, with no dependent children, recruited at 30

The average age of such officials over the age of 50 is 55.

Parameter 3 : Average profiles of newly recruited officials

Officials availing themselves of the scheme will be replaced by officials in categories A and
B (in the current proportions, i.e. approximately two thirds A/LA and one third B) recruited at
the basic grades (A7/3 and B5/3 respectively), and presumed to be married with one
dependent child.

Parameter 4: Average level of allowance

Applying the conditions set out in Annex I to the existing target group of officials (meeting
the criteria for age and length of service) gives an average level of allowance of 65%, which
is the level used to make the calculations.

13

Parameter 5: Other assumptions

The base figures (salaries, allowances, etc.) include a projected indexing at 2.5% of the
present amounts (adjustment under the 'Method' for 2000 and updating in mid-2001).

The level of the expatriation allowance, included in the remuneration of staff in active
employment, is estimated at 12% (average of the rates of 0%, 4% and 16% according to
individual situations).

The geographical weighting applied to the remuneration of the former officials is estimated at
105 (depending on where they establish residence after leaving the service).

Annual budget savings arising from the scheme

The annual budget cost of individual officials before leaving the service is shown in the table
below:

Annual budget cost per official in active employment

Basic salary

Household allowance

Secretarial allowance

Expatriation

Employer's contribution to the Joint
Sickness Insurance Scheme

Community tax

Temporary contribution

Personal pension contribution

A3/3

A4/2

B1/2

C1/2

D1/5

114 027

90 272

64 226

40 621

35 047

5 701

4 514

3 211

14 367

11 374

4 846

3 837

-23 572

-15 026

-3 214

-9 407

-2 466

-7 447

8 093

2 729

-7 238

-1 554

-5 299

2 095

1 928

5 357

1 726

2 095

4 457

1 490

-3 338

-2 412

-544

-306

-3 351

-2 891

Budget cost per official

102 749

85 058

64 168

44 494

37 480

Details of the annual budget cost of individual officials after leaving the service are shown in
the table below (expenses associated with leaving the service are not additional costs but costs
paid in advance and are not included in the calculation):

Annual budget cost per official after leaving under the scheme

Allowance

Household allowance

Weighting

Employer's contribution to the Joint
Sickness Insurance Scheme

A3/3

A4/2

B1/2

C1/2

D1/5

74 118

58 677

41 747

26 403

22 780

3 706

3 355

2 520

2 934

2 656

1 995

2 095

1 890

1 419

2 095

1 233

898

2 095

1 078

775

Community tax

Personal pension contribution

-9 097

-9 407

-5 674

-7 447

-3 060

-5 299

-1 620

-3 351

-2 891

Budget cost per official

65 195

53 141

38 792

25 658

23 837

14

Details of the annual budget savings achieved as a result of the scheme (savings from the
departure of one official and total savings) are shown in the table below:

Annual budget savings arising from the scheme

A3/3

A4/2

B1/2

C1/2

D1/5

Total

Cost
per
employment

official

in

active

102 749

85 058

64 168

44 494

37 480

Cost per official leaving under the
scheme

65 195

53 141

38 792

25 658

23 837

Savings per official

37 554

31 917

25 376

18 837

13 643

Number of officials to whom the
scheme will apply

44

268

90

160

38

600

Total budget savings

1 652 376 8 553 756 2 283 840 3 013 920

518 434

16 022 326

The total annual budget saving is

€

16 022 326.

Cost of new posts and recruitment possibilities

Details of the average annual budget cost of one new official are shown in the table below
(the career weighting takes account of career advancement during the relevant period;
expenses associated with taking up appointment are not included in the calculation):

Annual budget cost per new official

Basic salary

Household allowance

Dependent child allowance

Education allowance

Expatriation

Employer's contribution to the Joint
Sickness Insurance Scheme

Community tax

Temporary contribution

Personal pension contribution

A7/3

B5/3

57 643

37 107

2 882

2 698

2 411

7 587

2 450

2 095

2 698

2 411

5 027

1 577

-4 572

-1 973

-1 291

-4 756

-401

-3 061

Total budget cost of scheme

65 052

45 480

Career weighting

1.06

1.06

Budget cost per official

68 955

48 383

The annual budget cost of recruiting 258 new officials (two thirds in Categories A/LA and
one third in Category B) is equivalent to the total annual budget savings arising from the
scheme:

Total annual budget cost of new posts

A7/3

B5/3

Total

Budget cost per official

68 955

48 383

Number of new posts

172

86

258

Total budget cost of recruitment

11 860 260

4 160 938 16 021 198

15

The savings arising from the departure of 600 officials under the termination-of-
service scheme would mean that 258 new officials could be recruited, two thirds of
them A/LA officials and one third B officials.

16

FINANCIAL STATEMENT

1.

TITLE OF OPERATION

Termination-of-service allowance under the scheme required to accompany the
reform of the Commission

(Council Regulation (ECSC, EC, Euratom) No ....)

2.

BUDGET HEADING(S) INVOLVED

A11

staff in active employment

A1218

allowances for staff whose service is terminated

A1230

employer's contribution to the Joint Sickness Insurance Scheme

A1290

weighting for staff whose service is terminated

A1291

adjustments to various allowances

A400

A401

A403

tax proceeds

proceeds of staff contribution to the pension scheme

proceeds of the temporary contribution

3.

LEGAL BASIS

Article 283 of the Treaty establishing the European Community

4.

4.1

DESCRIPTION OF OPERATION

General objective

The purpose of the operation is to allow 600 officials who are affected by the
redeployment of Commission human resources in 2001 and 2002, and who would
not be able to change their career orientation in order to perform new activities, to
leave the Commission before the normal retirement age. The departure of these
officials should enable new officials to be recruited with the required skills and
qualifications.

4.2

Period covered and arrangements for renewal or extension

The 600 officials will depart in two waves, 300 in 2001 and 300 in 2002. The budget
impact will mainly cover the years 2001 to 2010. On the basis of the calculations
made for the average groups described in Annex II to the draft Regulation, the
allowances payable will begin to tail off from 2008, as the former officials reach the
normal retirement age and become eligible for retirement pension, and will cease in
2010, the year in which these officials should come under the pension scheme.

17

5.

5.1

5.2

5.3

CLASSIFICATION OF EXPENDITURE OR REVENUE

Compulsory expenditure

Non-differentiated appropriations

Type of revenue: deductions from the allowance

6.

TYPE OF EXPENDITURE OR REVENUE

Operating budget – administrative expenditure: termination-of-service allowances,
contribution to the sickness insurance scheme, deductions from the allowances

7.

FINANCIAL IMPACT

The starting point is that the operation should have a neutral effect on the budget.
The savings achieved through the departure of 600 officials (the difference between
the cost of their remuneration as officials in active employment and the allowance
they would receive after leaving the service) could enable 258 new officials to be
recruited in categories A/LA and B.

Overall, there will be a recovery by the budgetary authority of 342 posts (difference
between 600 departures under the scheme and 258 new recruits, including 171 in
2001 and 171 in 2002). In the longer term a saving will begin to be felt from 2008.
Between 2008 and 2010 the amount of the allowances will decline gradually as the
officials whose service is terminated early come under the retirement pension
scheme. The savings generated will be equivalent to 342 posts recovered by the
budgetary authority around 2010.

7.1

Method of calculating the total cost of the operation and breakdown by year

See details in Annex II to the draft Regulation. The references to grades A 3, A 4,
A 5 and A 7 in the financial statement refer to both Category A and LA.

The profile of officials whose service is terminated, the number of departures in 2001
and in 2002, the annual budget cost of an official in active employment, the annual
budget cost of an official whose service is terminated, the annual savings arising
from termination and the period for which the allowance is payable (before the
pension scheme takes over) are shown in the table below:

Profile of
departing
official
A3
A4/A5
B1/B2
C1/C2
D1/D2
Total

Number of
departures
2001
22
134
45
80
19
300

Number of
departures
2002
22
134
45
80
19
300

Cost of an
official in
service
102 748
85 058
64 168
46 422
37 480

Cost of a
departing
official
65 195
53 141
38 793
25 657
23 837

Savings
arising from
termination
37 553
31 917
25 375
20 765
13 643

Duration of
allowance

7 yrs 6 mths
9 yrs
7 yrs 7 mths
8 yrs 2 mths
8 yrs 6 mths

18

The budget situation, considered over the period for which the allowance is payable
to the officials whose service is terminated, is shown in the table below which sets
out in successive columns:

- the number of officials whose service is terminated,
- the number of allowances payable,
- the cost of maintaining those officials in active employment,
- the cost of the allowances payable,
- the savings arising from the scheme

Year

2001
2002
2003
2004
2005
2006
2007
2008
2009
2010

Number
of
departing
officials

Number
of
allowances

300
600
600
600
600
600
600
600
600
600

300
600
600
600
600
600
600
586
437
161

Cost of
maintaining
officials in
service

20 817 450
41 634 900
41 634 900
41 634 900
41 634 900
41 634 900
41 634 900
41 634 900
41 634 900
41 634 900

Cost of
allowances

Savings
arising from
the scheme

12 806 332
25 612 664
25 612 664
25 612 664
25 612 664
25 612 664
25 612 664
24 779 140
19 378 491
7 793 613

8 011 118
16 022 236
16 022 236
16 022 236
16 022 236
16 022 236
16 022 236
16 855 760
22 256 409
33 841 287

€

The annual budget cost of a new A7 official is
68 955 and of a new B5 official
€
48 383 (these costs include a weighting to reflect developments in the careers over
the period in question). The funds available as a result of the termination of service
of 600 officials will
to be recruited
(172 A7 officials and 86 B5 officials respectively, half in 2001 and half in 2002), at a
total annual budget cost of

therefore enable 258 new officials

16 021 198.

€

Annual budget cost per official
Number of new posts
Annual budget cost of new posts

A7/3

68 955
172
11 860 260

B5/3

48 383
86
4 160 938

Total

258
16 021 198

8.

FRAUD PREVENTION MEASURES PLANNED

Not applicable

9.

ELEMENTS OF COST-EFFECTIVENESS ANALYSIS

See point 7.1

19

10.

ADMINISTRATIVE EXPENDITURE (PART A OF SECTION III OF THE
GENERAL BUDGET)

10.1

Impact on the number of jobs

In order to administer the termination-of-service scheme unit ADMIN.B.6 will
require extra staff estimated at one category C post.

10.2

Overall financial impact of additional human resources

None

10.3

Increase in other operating expenditure arising from the operation,
particular costs arising from meetings of committees and expert groups

in

None

20

Proposal for a

COUNCIL REGULATION

amending Regulation (EEC, Euratom, ECSC) No 260/68 laying down the conditions and
procedure for applying the tax for the benefit of the European Communities

21

EXPLANATORY MEMORANDUM

The purpose of the following two Regulations is to prevent those who avail themselves of the
special, temporary measures to terminate the service of officials (Peer Group termination-of-
service scheme) from escaping the Community tax.

22

Proposal for a

COUNCIL REGULATION

amending Regulation (EEC, Euratom, ECSC) No 260/68 laying down the conditions and
procedure for applying the tax for the benefit of the European Communities

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 283 thereof,

Having regard to the Protocol on the Privileges and Immunities of
Communities, and in particular Article 13 thereof,

the European

Having regard to the proposal from the Commission,

Whereas:

(1)

Regulation (EEC, Euratom, ECSC) No 260/686, as last amended by Regulation (EC,
ECSC, Euratom) No 2804/007, should be amended to take account of Council
Regulation No ... of ... introducing special measures to terminate the service of
officials of the Commission of the European Communities as part of the reform of the
Commission,

HAS ADOPTED THIS REGULATION:

Article 1

In Article 2 of Regulation (EEC, Euratom, ECSC) No 260/68, the following sixteenth indent
is added:

– those entitled to the allowance provided for in the event of termination of service under

Article 4 of Regulation No ...

6

7

OJ L 56, 4.3.1968, p. 8.
OJ L 326, 22.12.2000, p. 3.

23

Article 2

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

This Regulation shall apply from the date of entry into force of the Regulation referred to in
Article 1.

Done at Brussels,

For the Council
The President

24

Proposal for a

COUNCIL REGULATION

amending 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 12, the second paragraph of Article 13 and Article 14 of the Protocol on the
Privileges and Immunities of the Communities apply

25

2001/0028 (CNS)

Proposal for a

COUNCIL REGULATION

amending 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 12, the second paragraph of Article 13 and Article 14 of the Protocol on the
Privileges and Immunities of the Communities apply

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 283 thereof,

Having regard to the Protocol on the Privileges and Immunities of
Communities, and in particular Articles 16 and 22 thereof,

the European

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament8,

Having regard to the opinion of the Court of Justice9,

Having regard to the opinion of the Court of Auditors10,

Whereas:

(1)

Regulation (Euratom, ECSC, EEC) No 549/6911, as last amended by Regulation (EC,
ECSC, Euratom) No 1198/9812, should be amended to take account of Council
Regulation No ... of ... introducing special measures to terminate the service of
officials of the Commission of the European Communities as part of the reform of the
Commission,

HAS ADOPTED THIS REGULATION:

8

9

10

11

12

OJ C
OJ C
OJ C
OJ L 74, 27.3.1969, p. 1.
OJ L 166, 11.6.1998, p. 3.

26

Article 1

In Article 2 of Regulation (Euratom, ECSC, EEC) No 549/69, the following point (p) is
added:

“(p) those entitled to the allowance provided for in the event of termination of service under

Article 4 of Regulation No ...”.

Article 2

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

This Regulation shall apply from the date of entry into force of the Regulation referred to in
Article 1.

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

Done at Brussels,

For the Council
The President

27