Proposal for a Council Regulation adjusting, from 1 July 2008, the rate of contribution to the pension scheme of officials and other servants of the European Communities {SEC(2008)2873}
Date: 2008-11-21
Institutions: European Commission
Subjects: European official, pension scheme, regulations for civil servants, servant (EU), social-security contribution

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 21.11.2008 
COM(2008) 787 final 

Proposal for a 

COUNCIL REGULATION 

adjusting, from 1 July 2008, the rate of contribution to the pension scheme of officials 
and other servants of the European Communities 

{SEC(2008)2873} 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

CONTEXT OF THE PROPOSAL 

Grounds for and objectives of the proposal 

The  Council  has  to  decide  each  year,  on  a  proposal  from  the  Commission,  on  the 
adjustment of the rate of contribution to the pension scheme effective from 1 July. 

General context 

Under  Article  83a(4)  of  the  Staff  Regulations,  the  Commission  has  to  present  to  the 
Council  each  year  an  updated  version  of  the  five-yearly  actuarial  assessment,  in 
accordance with Annex XII to the Staff Regulations. 

Under  Article  13  of  Annex  XII  to  the  Staff  Regulations,  Eurostat  has  submitted  the 
report  on  this  assessment,  which  determines  the  rate  of  contribution  required  to 
maintain actuarial balance of the pension scheme. 

Under Article 12 of Annex XII to the Staff Regulations, the rate in Articles 4 and 8 of 
Annex VIII to the Staff Regulations for the calculation of compound interest must be 
the  effective  rate  referred  to  in  Article  10  of  Annex  XII  and  should  be,  if  necessary, 
revised on the occasion of five-yearly actuarial assessments. 

Existing provisions in the area of the proposal 

A  proposal  is  to  be  presented  each  year  for  adjusting  the  rate  of  contribution  to  the 
pension scheme. 

Consistency with other policies and objectives of the Union 

Not applicable. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

Consultation of interested parties 

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Methods of consultation used, main sectors covered and general profile of respondents 

The  elements  of  the  proposal  have  been  discussed  with  the  staff  representatives  in 
accordance with the appropriate procedures. 

Summary of replies received and the way in which they have been taken into account 

The proposal takes account of the opinions of the parties consulted. 

Collection and use of expertise 

There was no need for external expertise. 

Impact assessment 

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-  The  purpose  of  the  proposal  is  to  adjust  remuneration  and  pensions  in  accordance 
with the legislation in force. 

- The legislation in force permits no alternative. 

LEGAL ELEMENTS OF THE PROPOSAL 

Summary of the proposed action 

In accordance with Annex XII to the Staff Regulations, Eurostat has submitted a report 
on the actuarial assessment of the pension  scheme.  According  to  this  assessment,  the 
rate  of  contribution  required  to  maintain  actuarial  balance  of  the  pension  scheme  is 
10,9% of basic salary. 

Under  Article  83a(4),  where  it  is  shown  that  there  is  a  gap  of  at  least  0,25  points 
between  the  rate  of  contribution  currently  applied  (10,25%)  and  the  rate  required  to 
maintain actuarial balance (10.9%), the Council is to consider whether the rate should 
be adapted, in accordance with the arrangements laid down in Annex XII. 

Under Article 2(1) of Annex XII, the adjustment cannot lead to a contribution that is 
more than one percentage point above or below the valid rate of the previous year. 

The  Commission  is  therefore  proposing  that  the  rate  of  contribution  be  adjusted  to 
10,9% with effect from 1 July 2008. 

Under  Article  12  of  Annex  XII,  the  rate  in  Articles  4  and  8  of  Annex  VIII  for  the 
calculation of compound interest is to be adjusted to 3.1%. 

Legal basis 

Staff  Regulations  of  officials  of  the  European  Communities,  and  in  particular  Article 
83a thereof and Annex XII thereto. 

Subsidiarity principle 

The  proposal  concerns  an  area  that  falls  within  the  exclusive  competence  of  the 
Community. The principle of subsidiarity does not therefore apply. 

Proportionality principle 

The  proposal  is  consistent  with  the  principle  of  proportionality  for  the  following 
reasons: 

- Article 83a of the Staff Regulations provides for a Council regulation. 

- The proposal has no financial impact on expenditure. The impact on revenue results 
directly  from  the  application  of  the  adjustment  method  provided  for  in  the  Staff 
Regulations. 

Choice of instruments 

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Proposed instrument: regulation. 

Other instruments would have been inappropriate for the following reasons: 

- Article 83a of the Staff Regulations provides for a Council regulation. 

BUDGETARY IMPLICATIONS 

The  impact  on  revenue  of  the  adjustment  to  the  rate  of  contribution  to  the  pension 
scheme is detailed in the financial statement annexed hereto. 

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Proposal for a 

COUNCIL REGULATION 

adjusting, from 1 July 2008, the rate of contribution to the pension scheme 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  Staff  Regulations  of  officials  of  the  European  Communities  and  the 
conditions  of  employment  of  other  servants  of  the  Communities  laid  down  by  Regulation 
(EEC, Euratom, ECSC) No 259/68, and in particular Article 83a of and Annex XII to the Staff 
Regulations, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

In accordance with Article 13 of Annex XII to the Staff Regulations, on 1 September 
2008  Eurostat  submitted  a  report  on  the  2008  actuarial  assessment  of  the  pension 
scheme  updating  the  parameters  referred  to  in  that  Annex.  According  to  this 
assessment,  the  rate  of  contribution  required  to  maintain  actuarial  balance  of  the 
pension scheme is 10,9% of basic salary. 

In  the  interests  of  actuarial  balance  of  the  pension  scheme  of  officials  and  other 
servants  of  the  European  Communities,  the  rate  of  contribution  should  therefore  be 
adjusted to 10,9% of the basic salary. 

In accordance with Article 12 of Annex XII to the Staff Regulations, the rate for the 
calculation of compound interest must be the effective rate referred to in Article 10 of 
Annex XII and should therefore be adjusted, 

HAS ADOPTED THIS REGULATION: 

With effect from 1 July 2008, the rate of the contribution referred to in Article 83(2) of the 
Staff Regulations shall be 10,9%. 

Article 1 

With  effect  from  1  January  2009,  the  rate  in  Articles  4(1)  and  8  of  Annex  VIII  for  the 
calculation of compound interest shall be 3,1% 

Article 2 

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

Article 3 

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

Done at Brussels, 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS HAVING A 
BUDGETARY IMPACT EXCLUSIVELY LIMITED TO THE REVENUE SIDE 

1. 

NAME OF THE PROPOSAL: 

Proposal  for  a  Council  Regulation  adjusting,  from  1  July  2008,  the  rate  of 
contribution  to  the  pension  scheme  of  officials  and  other  servants  of  the  European 
Communities 

2. 

BUDGET LINES: 

Chapter and Article: 

400 Tax on salaries of officials and other servants 

Amount budgeted for the year concerned (Budget 2008): 

EUR 529.9 million 

410 Staff contributions to the pension scheme 

Amount budgeted for the year concerned (Budget 2008): 

EUR 350 million 

3. 

FINANCIAL IMPACT  

(cid:133) 

(cid:58) 

Proposal has no financial implications 

Proposal has no financial impact on expenditure but has a financial impact on 
revenue – the effect is as follows: 

(€ million to one decimal place)  

Budget line 

Revenue1 

12 month period 
starting 01/07/2008 

Article 400 

Impact on own resources 

Article 410 

Impact on own resources 

-4.1 

19.6 

2008 

-2.1 

9.8 

Situation following action 

1 

Regarding  traditional  own  resources  (agricultural  duties,  sugar  levies,  customs  duties)  the  amounts 
indicated must be net amounts, i.e. gross amounts after deduction of 25% of collection costs. 

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Article 400 

Article 410 

2009 

-4.1 

19.6 

2010 

-4.1 

19.6 

2011 

-4.1 

19.6 

2012 

-4.1 

19.6 

2013 

-4.1 

19.6 

4. 

5. 

ANTI-FRAUD MEASURES 

OTHER REMARKS 

Method of calculation: 

Pension contribution = new contribution – implementation current year   
New contribution = implementation x new rate/rate in force 

Effect of tax reduction = 21% of the increase in the pension contribution. 

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