Proposal for a Council Regulation (EC, Euratom) fixing from [1 May 2004] the correction coefficients applying to the pensions of officials and other servants of the European Communities
Date: 2004-03-24
Institutions: European Commission
Subjects: European official, cost of living, pension scheme, servant (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 24.3.2004 
COM(2004) 192 final 

Proposal for a 

COUNCIL REGULATION (EC, EURATOM) 

fixing from [1 May 2004] the correction coefficients applying to the pensions of 
officials and other servants of the European Communities 

(presented by the Commission) 

EN 

   EN

 
 
 
  
  
EXPLANATORY MEMORANDUM 

1. 

BACKGROUND 

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

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

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

2. 

CALCULATED CORRECTION COEFFICIENTS FOR PENSIONERS 

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

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

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

The  economic  parities,  conversion 
coefficients for pensions are shown in Table A. 

rates  and  calculated  correction 

2 

 
 
  
 
Table A
Calculated correction coefficients for retired officials
as at 1 July 2003

Economic parity     

Conversion rate     

(€1 =)

(2)
9,659
1,021
0,895
0,945
1,063
1,121
1,035
1,038
1,071
0,898
1,150
10,010
0,7768
0,556
21,910
10,314
160,280
0,384
2,209
0,350
2,666
187,260
27,674

(€1 =)

(3)
7,4270
1
1
1
1
1
1
1
1
1
1
9,1828
0,6901
0,5863
31,600
15,6466
266,250
0,6476
3,4528
0,4264
4,4700
233,865
41,690

Calculated correction 
coefficients for retired 
officials (%)
(4)
130,1
102,1
89,5
94,5
106,3
112,1
103,5
103,8
107,1
89,8
115,0
109,0
112,6
94,8
69,3
65,9
60,2
59,3
64,0
82,1
59,6
80,1
66,4

Country
(1)
DK
DE
EL
ES
FR
IE
IT
NL
AT
PT
FI
SE
UK
CY
CZ
EE
HU
LV
LT
MT
PL
SI
SK

(4)  = (2) / (3)

3 

 
 
  
 
 
3. 

CORRECTION COEFFICIENTS FOR PENSIONERS 

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

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

Table B

Correction coefficients for retired officials 
Applicable from 1 May 2004

Correction coefficients  
for officials

Calculated correction 
coefficients for retired 
officials

Correction 
coefficients for 
retired officials

(2)
135,7
101,7
91,4
98,5
119,1
123,3
106,9
115,1
107,0
90,6
120,6
116,7
139,6
88,0
88,8
77,5
81,9
76,1
77,6
88,0
72,4
84,9
83,8

(3)
130,1
102,1
89,5
94,5
106,3
112,1
103,5
103,8
107,1
89,8
115,0
109,0
112,6
94,8
69,3
65,9
60,2
59,3
64,0
82,1
59,6
80,1
66,4

(4)
134,6
101,8
100,0
100,0
116,5
121,1
106,2
112,8
107,0
100,0
119,5
115,2
134,2
100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0

Country
(1)
DK
DE
EL
ES
FR
IE
IT
NL
AT
PT
FI
SE
UK
CY
CZ
EE
HU
LV
LT
MT
PL
SI
SK

(4)  = 80% x (2) + 20% x (3) 

Minimum: 100

4 

 
 
  
 
Proposal for a 

COUNCIL REGULATION (EC, EURATOM) 

fixing from [1 May 2004] the correction coefficients applying to the pensions of 
officials and other servants of the European Communities  

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

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

Having regard to the Staff Regulations of officials and the Conditions of Employment 
of other servants, as laid down by Regulation (EEC, Euratom, ECSC) No 259/681, as 
last amended by Regulation (EC, Euratom) No …2, and in particular Articles 63, 64, 
65, 65a, 82 of and Annexes XI and XIII to those Regulations and the first paragraph 
of Article 20 and Article 64 of those Conditions of Employment, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

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

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

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

HAS ADOPTED THIS REGULATION: 

1 

2 

OJ L 56, 4.3.1968, p. 1. 
OJ …, …, p. 1. 

5 

 
 
  
 
                                                 
Article 1 

1. 

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

Denmark
Germany
Greece
Spain
France
Ireland
Italy
Netherlands
Austria
Portugal
Finland
Sweden
United Kingdom
Cyprus
Czech Republic
Estonia
Hungary
Latvia
Lithuania
Malta
Poland
Slovenia
Slovakia

130,1
102,1
89,5
94,5
106,3
112,1
103,5
103,8
107,1
89,8
115,0
109,0
112,6
94,8
69,3
65,9
60,2
59,3
64,0
82,1
59,6
80,1
66,4

2. 

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

6 

 
 
  
 
 
Denmark
Germany
Greece
Spain
France
Ireland
Italy
Netherlands
Austria
Portugal
Finland
Sweden
United Kingdom
Cyprus
Czech Republic
Estonia
Hungary
Latvia
Lithuania
Malta
Poland
Slovenia
Slovakia

134,6
101,8
100,0
100,0
116,5
121,1
106,2
112,8
107,0
100,0
119,5
115,2
134,2
100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0

Article 2 

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

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

Done at Brussels,  

For the Council 
The President 

7 

 
 
  
 
 
 
 
FINANCIAL STATEMENT 

BUDGET HEADING: 
A10 and A11 remunerations and A 19 pensions 
TITLE: 
Correction coefficients Pensions 
LEGAL BASIS: 
Annexes XI and XIII to the Staff Regulations 
AIMS: 
To fix the correction coefficients applicable to pensions 
FINANCIAL IMPLICATIONS  

PERIOD OF 12 
MONTH  

(EUR million) 

DATE: 6.2.2004 
APPROPRIATIONS: 

CURRENT 
FINANCIAL 
YEAR 
2004 
(EUR million) 

FOLLOWING 
FINANCIAL 
YEAR 
2005 
(EUR million) 

1. 

2. 

3. 

4. 

5. 

5.0 

EXPENDITURE  
-  CHARGED TO THE EC BUDGET  
(REFUNDS/INTERVENTION) 
-  NATIONAL AUTHORITIES 
-  OTHERS 

5.1  REVENUE 

-  OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
-  NATIONAL 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: 

-15,0 

-10,0 

-23,5 

-0,3 

-0,2 

-0,5 

2006 
-33,6 
-0,9 

2007 
-43,9 
-1,4 

2008 
-53,7 
-2,0 

2009 
-60,4 
-2,2 

Difference between the cost of the correction coefficients for officials and the estimated correction 
coefficients for pensioners for the estimated number of pensioners each year. 
6.0  CAN THE MEASURE BE FINANCED FROM APPROPRIATIONS ENTERED IN 

THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 

N/A 

6.1  CAN THE MEASURE BE FINANCED BY TRANSFER BETWEEN CHAPTERS 

OF THE CURRENT BUDGET? 

6.2  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 
6.3  WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?  
COMMENTS: 
The calculation takes account of the extra saving derived from the removal of correction coefficients for rights 
acquired after [1.5.04], and the extra saving derived from the limitation of transfers. 

N/A 
NO 
YES NO 

8