Important information for pension organisations providing pension savings services (the third pillar )
Date: 2008-10-02
Institutions: European Commission
Subjects: regulations for civil servants, servant (EU), supplementary pension, transfer of pension rights

2.10.2008

EN

Official Journal of the European Union

C 250/7

Important information for pension organisations providing pension savings services (the ‘third
pillar’)

(2008/C 250/04)

All public and private organisations providing supplementary pension services based on voluntary contribu-
tions should be aware of the opportunity provided by the amendment of Article 12 of Annex VIII to the
Staff Regulations of Officials of the European Communities by Regulation (EC, Euratom) No 723/2004
(OJ L 124, 27.4.2004, p. 1) adopted by the Council on 22 March 2004.

Whereas, prior to this amendment, officials leaving a Community institution without entitlement to a retire-
ment pension could receive the pension rights acquired while working at the Communities in the form of a
‘severance grant’, the new rules require them in most cases to apply to transfer their rights to their new
pension scheme, or to a private insurance company or pension fund.

The above-mentioned Regulation also made other amendments to the Staff Regulations,
establishment of a new category of non-permanent staff members, the contract staff.

including the

Because of these two amendments, and given that the period of service of non-permanent staff members is
in principle limited, a considerable number of former staff members are already looking for pension organi-
sations that can take over and manage permanently the pension rights they acquired while working at the
Communities.

Although, pursuant to Article 11(1) of Annex VIII to the Staff Regulations, these former non-permanent
staff members can transfer such rights to the pension system(s) to which they are affiliated by virtue of their
new professional activities following the end of their period of service at the Communities, it is sometimes
difficult for them to do so. Moreover, the persons concerned are encountering considerable problems
finding a private pension organisation which will guarantee the fulfilment of the four conditions ((i) to (iv))
listed under Article 12(1)(b) of Annex VIII to the Staff Regulations, which are as follows:

(i) the capital will not be repaid;

(ii) a monthly income will be paid from age 60 at the earliest, and age 65 at the latest;

(iii) provisions are included for reversion or survivors' pensions;

(iv) transfer to another insurance company or other fund will be authorised only if such fund fulfils the conditions laid

down in points (i), (ii) and (iii).

One reason that could probably explain the problems former staff members are encountering is the fact that
pension organisations are unfamiliar with the existence and potential implications of this particular provi-
sion in the Staff Regulations of Officials of the European Communities. It must be emphasised that, since
the said Staff Regulations are, as mentioned above, laid down by a Council Regulation, they are directly
applicable in all Member States without any need for national legislation.

To make it easier for its (former) staff members to find an organisation to administer the pension rights they
acquired while working at the Communities, the Commission would like to draw up a list of the pension
organisations interested in offering them pension savings scheme, which satisfy the above-mentioned condi-
tions.

For your information, at 1 September 2008, the Commission counted over 1 500 pension rights dossiers
waiting to be transferred to a pension organisation, with the average amount to be transferred calculated at
approximately EUR 18 000. Moreover, the number of staff members leaving all the Community institutions
each year who must transfer the pension rights acquired there is around 900.

Pension organisations interested in appearing on the list, which will be made available, for information
purposes, to former staff members of the European Communities, must submit a dossier to the European
Commission comprising the following:

— an official statement certifying that they undertake to comply with the four conditions ((i) to (iv)) laid
down in Article 12(1)(b) of Annex VIII to the Staff Regulations of Officials of the European Commu-
nities with respect to all amounts representing pension rights transferred in this context, and also to
facilitate the exercise of the right of supervision by the competent Community authorities in this connec-
tion,

C 250/8

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Official Journal of the European Union

2.10.2008

— a copy of the authorisation issued by the national authorities responsible for financial supervision to

which the pension organisation is accountable,

— a copy of the standard contract used to prepare individual contracts designed specifically for the perma-
nent management of the amounts transferred pursuant to Article 12(1)(b) of Annex VIII to the Staff
Regulations of Officials of the European Communities,

— a clear description of any conditions applicable in terms of the residence of the former staff member
(and any dependants/heirs) valid at the time the contract is entered into and/or at the time of payment.

The application should be sent to the following address:
Commission européenne
PMO 4 — secteur 3
Bureau 6/43
B-1049 Bruxelles

Any requests for additional information should also be sent to this address.

Annex: copy of Articles 11 and 12 of Annex VIII to the Staff Regulations of Officials of the European
Communities.

2.10.2008

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Official Journal of the European Union

C 250/9

Articles 11 and 12 of Annex VIII to the Staff Regulations of Officials of the European Communities

ANNEX

1.

An official who leaves the service of the Communities to:

Article 11

— enter the service of a government administration or a national or international organization which has concluded an

agreement with the Communities,

— pursue an activity in an employed or self-employed capacity, by virtue of which he acquires pension rights under a

scheme whose administrative bodies have concluded an agreement with the Communities,

shall be entitled to have the actuarial equivalent of his retirement pension rights, updated to the actual date of transfer, in
the Communities transferred to the pension fund of that administration or organization or to the pension fund under
which he acquires retirement pension rights by virtue of the activity pursued in an employed or self-employed capacity.

2.

An official who enters the service of the Communities after:

— leaving the service of a government administration or of a national or international organization,

or

— pursuing an activity in an employed or self-employed capacity,

shall be entitled, after establishment but before becoming eligible for payment of a retirement pension within the meaning
of Article 77 of the Staff Regulations, to have paid to the Communities the capital value, updated to the date of the actual
transfer, of pension rights acquired by virtue of such service or activities.

In such case the institution in which the official serves shall, taking into account the official's basic salary, age and
exchange rate at the date of application for a transfer, determine by means of general
implementing provisions the
number of years of pensionable service with which he shall be credited under the Community pension scheme in respect
of the former period of service, on the basis of the capital transferred, after deducting an amount representing capital
appreciation between the date of the application for a transfer and the actual date of the transfer. Officials may make use
of this arrangement once only for each Member State and pension fund concerned.

3.
Paragraph 2 shall also apply to an official who is reinstated after a period of secondment under the second indent of
point (b) of the first paragraph of Article 37 of the Staff Regulations and to an official who is reinstated following expiry
of a period of leave on personal grounds under Article 40 of the Staff Regulations.

Article 12

An official aged less than 63 years whose service terminates otherwise than by reason of death or invalidity and

1.
who is not entitled to an immediate or deferred retirement pension shall be entitled on leaving the service:

(a) where he has completed less than one year's service and has not made use of the arrangement laid down in
Article 11(2), to payment of a severance grant equal to three times the amounts withheld from his basic salary in
respect of his pension contributions, after deduction of any amounts paid under Articles 42 and 112 of the Condi-
tions of Employment of Other Servants;

(b) in other cases, to the benefits provided under Article 11(1) or to the payment of the actuarial equivalent of such bene-
fits to a private insurance company or pension fund of their choice, on condition such company or fund guarantees
that:

(i) the capital will not be repaid;

(ii) a monthly income will be paid from age 60 at the earliest, and age 65 at the latest;

(iii) provisions are included for reversion or survivors' pensions;

(iv) transfer to another insurance company or other fund will be authorised only if such fund fulfils the conditions

laid down in points (i), (ii) and (iii).

By way of derogation from paragraph 1(b), officials under 63 years of age who, since taking up their duties, have, in
2.
order to establish or maintain pension rights, paid into a national pension scheme, a private insurance scheme or a
pension fund of their choice which satisfies the requirements set out in paragraph 1, and whose service terminates for
reasons other than death or invalidity without their qualifying for an immediate or deferred retirement pension, shall be
entitled, on leaving the service, to a severance grant equal to the actuarial value of their pension rights acquired during
service in the institutions. In these cases the payments made in order to establish or maintain their pension rights under
the national pension scheme in application of Articles 42 or 112 of the Conditions of Employment of Other Servants
shall be deducted from the severance grant.

3. Where an official's service has been terminated by removal from his post, the severance grant to be paid or, as the
case may be, the actuarial equivalent to be transferred shall be determined by reference to the decision taken in accordance
with Article 9(1)(h) of Annex IX.