Proposal for a Council Regulation concerning transitional measures for the reform of the Staff Regulations, in particular with regard to pay and pension
Date: 2003-10-15
Institutions: European Commission
Subjects: European official, deduction at source, pay, regulations for civil servants, servant (EU), social-security contribution

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 15.10.2003
COM(2003) 612 final

2003/0241 (CNS)

Proposal for a

COUNCIL REGULATION

concerning transitional measures for the reform of the Staff Regulations, in particular
with regard to pay and pension

(presented by the Commission)

EXPLANATORY MEMORANDUM

On  19  May  2003,  and  on  29  September  2003  following  the  results  of  the  Consultation
Committee, the Council reached agreement on the following:

Pay scales will be adjusted and applied only as of 1 January 2004 on the basis of the current
salary adjustment method. The new special levy, as well as the new pension contribution rate,
shall enter into force on 1 January 2004.

The remaining provisions of the new Staff Regulations will enter into force on 1 May 2004
except for the new nine-year multi-annual adjustment method which will take effect on 1 July
2004.

This  regulation  is  intended  to  implement  the  political  agreement  with  regard  to  the  above-
mentioned transitional measures as of 1 January 2004.

2

2003/0241 (CNS)

Proposal for a

COUNCIL REGULATION

concerning transitional measures for the reform of the Staff Regulations, in particular
with regard to pay and pension

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to Article 13 of the Protocol on the Privileges and Immunities of the European
Communities,

Having  regard  to  the  proposal  by  the  Commission  submitted    after  consulting  the  Staff
Regulations Committee 1,

Having regard to the conclusions, approved by the Council on 19 May 20032, and the results
of the Consultation Committee, approved by the Council on 29 September 20033

Having regard to the opinion of the European Parliament4,

Having regard to the opinion of the Court of Justice5,

Having regard to the opinion of the Court of Auditors6,

Whereas:

(1) 

The overhaul of the current Staff Regulations and Conditions of Employment, which
were originally adopted in 1962, have led to the requirement to phase in certain reform
measures:  The  adjustment  of  pay  scales  on  the  basis  of  the  current  method,  a  new
special levy and a new pension contribution rate shall take effect as of 1 January 2004,
by  way  of  transitional  measures,  while  the  revised  Regulation  amending  the  Staff
Regulations shall enter into force on 1 May 2004.

(2) 

The  new  special  levy  is  introduced  to  reflect  the  costs  of  social  policy,  improved
working conditions and the European Schools.

1

2

3

4

5

6

OJ C […], […], p. […].
Doc. 9522/03 STAT 34 FIN 201
Doc. 12957/03 STAT 77 FIN 405
OJ C […], […], p. […].
OJ C […], […], p. […].
OJ C […], […], p. […].

3

                                                
(3) 

(4) 

Article 83 (4) of the Staff Regulations provides that a new rate of contribution is to be
set where an actuarial assessment of the pension scheme has shown contributions by
officials to be insufficient to finance one third of the benefits payable thereunder. Such
an assessment7 has shown that the present contributions by officials are insufficient to
finance one third of the benefits payable.

Pursuant to Article 65 of the Staff Regulations, the Council shall each year review, and
if  appropriate  adjust,  the  remuneration  of  the  officials  and  other  servants  of  the
Communities.  According  to  the  proposal  adopted  by  the  Council,  pay  scales  will  be
adjusted on the basis of the current method. For this purpose, the period of validity of
Annex  XI  to  the  Staff  Regulations,  which  ceased  to  apply  on  30  June  2003,  shall
accordingly be extended.

HAS ADOPTED THIS REGULATION:

Article 1

Paragraph 1 to 5 of Article 66a of the Staff Regulations are replaced by the following:

1.

2.

3.

By way of derogation from Article 3 (1) of Regulation  (EEC, Euratom, ECSC)  No
260/68,8  a  temporary  measure  regarding  remuneration  paid  by  the  Communities  to
staff in active employment, to be known as the ‘special levy’, shall be applied for a
period running from 1 January 2004 until 30 April 2004.

The  rate  of  this special  levy, which shall  apply  to  the  base  defined  in  paragraph  3,
shall be 2.5%.

a) The base for the special levy shall be the basic salary for the grade and step used
to calculate remuneration, minus:

-  social  security  and  pension  contributions  and  the  tax,  before  the  special  levy,
payable  by  an  official  in  the  same  grade  and  step  without  dependants  within  the
meaning of Article 2 of Annex VII to the Staff Regulations, and

- an amount equal to the basic salary of an official in grade D4, step 1.

b) The components used to determine the base for the special levy shall be expressed
in euro and weighted at 100.

4.

The special levy shall be deducted monthly at source; the proceeds shall be entered
as revenue in the general budget of the Communities.

For  the  period  from  1  January  2004  until  30  April  2004,  the  contribution  rate  laid  down  in
Article 83 (2) of the Staff Regulations shall be set at 9,25%. The maximum rate for payments

Article 2

7

8

Doc. 13157/03 STAT 78 FIN 410 and Doc. 12957/03 STAT 77 FIN 405
OJ L 56, 4.3.1968, p. 8 Regulation as last amended by Regulation (Euratom, ECSC, EEC) No 3736/90
(OJ L 360, 22.12.1990, p. 1).

4

                                                
under  Art.  42  of  the  Conditions  of  employment  of  other  servants  of  the  European
Communities shall be set at 18,5%.

Article 3

1.

2.

3.

Annex XI to the Staff Regulations shall continue to apply from 1 July 2003 until 30
June 2004.

For the purposes of the 2003 review of remuneration, the adjustment provided for by
Article 65(1) of the Staff Regulations shall take effect as of 1 January 2004.

In accordance with Annex XI, the value of this adjustment shall be 3.4%.

This Regulation shall enter into force on […].

Article 4

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

Done at Brussels, […]

For the Council
The President
[…]

5

1.

2.

3.

4.

5.

5.0

5.1

FINANCIAL STATEMENT

DATE: 09/10/03
APPROPRIATIONS:
[…]

BUDGET HEADING:
A10 members of the European Institutions, A11 staff in active employment,
401 staff contribution to the pension scheme
Part B administrative expenditure and receipts for research and agencies
403 Special levy
TITLE:
Transitional measures for the reform of the Staff Regulations, in particular with regard to pay and
pension
LEGAL BASIS:
[art 283 of the Treaty]
AIMS:
Transitional measures for the Reform of the staff regulations
FINANCIAL IMPLICATIONS

12 MONTH
PERIOD

(EUR million)
[…]

CURRENT
FINANCIAL
YEAR
2003
(EUR million)
-51

FOLLOWING
FINANCIAL
YEAR
2004
(EUR million)

CHARGED TO THE EC BUDGET

NATIONAL AUTHORITIES
OTHER

EXPENDITURE
-
(REFUNDS/INTERVENTIONS)
-
-
REVENUE
-
(LEVIES/CUSTOMS DUTIES)
NATIONAL
-

OWN RESOURCES OF THE EC

5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE
5.2 METHOD OF CALCULATION:

[…]

-26

-3

2005
[…]
[…]

2006
[…]
[…]

2007
[…]
[…]

2008
[…]
[…]

6.0

6.1

See Annex 1
CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE
RELEVANT CHAPTER OF THE CURRENT BUDGET?

CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF
THE CURRENT BUDGET?

6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY?
6.3 WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?
OBSERVATIONS:
The effects after 1.05.04 are included in the main reform proposal.
The baseline for the statement is the situation in June 2003 (a prolongation of the temporary contribution and
the pay adjustment method)

Not
applicable

Not
applicable
NO
NO

6

Annex to the financial statement

Cost of Statute Reform 1/7/03 - 1/5/04

M(cid:31)  at 2002 constant prices

Other institutions estimated as

All institutions Heading 5
47%

of Commission H5

Reform Cost

Basic pay  Commission H5

Allocations Commission H5

Other  Commission H5

Exp. Commission H5

Other institutions H5
Pensions

Tax  Commission ~H5

Pension Contribution Commission ~H5

Temp. Contrib. / Special Lev y  (Commission ~H5)

Rev. Commission ~H5

Other institutions ~H5
Pensions

Expenditure

A
B Revenue

A - B Net budget Cost

Observations :

P&P adjustment 

not backdated

2003

1/3

2004

Total

-20

-7

0
-27
-13
-12

-2

-2

-13

-17
-8
-1

-51
-26
-25

-1

5

-5

-2
-1
0

0
-3
3

-20

-7

0

-27

-13

-12

-4

3

-18 compared w ith jun03 (roll ov er)

-18

-9

-1

-51

-29

-23

The effects after 1.05.04 are included in the main reform proposal.

The baseline for the statement is the situation in June 2003 (a prolongation of the temporary
contribution and the pay adjustment method)

7