COMMISSION STAFF WORKING DOCUMENT Report on the 2010 update of the 2009 actuarial assessment of the Pension Scheme for European Officials (PSEO)  Accompanying document to the   Proposal for a Council Regulation adjusting, from 1 July 2010, the rate of contribution to the pension scheme of officials and other servants of the European Union
Date: 2010-11-18
Institutions: European Commission
Subjects: European official, pension scheme, regulations for civil servants, report, servant (EU), social-security contribution

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EUROPEAN COMMISSION 

Brussels, 18.11.2010 
SEC(2010) 1408 

COMMISSION STAFF WORKING DOCUMENT 

Report on the 2010 update of the 2009 actuarial assessment of the 
Pension Scheme for European Officials (PSEO) 

Accompanying document to the 

Proposal for a Council Regulation adjusting, from 1 July 2010, the rate of contribution 
to the pension scheme of officials and other servants of the European Union 

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TABLE OF CONTENTS 

Introduction .................................................................................................................. 3 
1. 
Contribution rate .......................................................................................................... 4 
2. 
Update of the assessment of the actuarial balance ....................................................... 4 
3. 
Analysis of the contribution rate change...................................................................... 4 
4. 
Real Discount Rate (RDR)........................................................................................... 5 
4.1. 
General Salary Growth (GSG) ..................................................................................... 5 
4.2. 
Individual Salary Progression (ISP)............................................................................. 5 
4.3. 
Invalidity table ............................................................................................................. 5 
4.4. 
Life table (healthy persons).......................................................................................... 6 
4.5. 
Life table (invalid persons) .......................................................................................... 6 
4.6. 
Assumed retirement age............................................................................................... 6 
4.7. 
Average difference between men and women ............................................................. 6 
4.8. 
Probability of being married for men and women ....................................................... 7 
4.9. 
4.10. 
Loading factor for orphan’s and divorced spouse’s pension ....................................... 7 
4.11.  Methodological changes .............................................................................................. 7 
Population change effect .............................................................................................. 7 
4.12. 
Computation system..................................................................................................... 8 
5. 
Variables used in the assessment ................................................................................. 8 
5.1. 
Demographic parameters ............................................................................................. 8 
5.2. 
Economic parameters ................................................................................................... 9 
5.3. 
Technical implementation of Annex XII to the Staff Regulations .............................. 9 
5.4. 
Independent examination ............................................................................................. 9 
5.5. 

APPENDIX I - COMPUTATION ........................................................................................... 10 
Relevant figures for calculating the contribution rate................................................ 10 
1. 
Summary of main variables ....................................................................................... 11 
2. 
Demographic parameters ........................................................................................... 13 
3. 
Reference population ................................................................................................. 13 
3.1. 
Assumed retirement age............................................................................................. 15 
3.2. 
Invalidity table ........................................................................................................... 17 
3.3. 
Life table of healthy persons ...................................................................................... 18 
3.4. 
Life table of invalids .................................................................................................. 18 
3.5. 
Average age difference between men and women..................................................... 18 
3.6. 
Probability of being married for men and women ..................................................... 19 
3.7. 
Economic parameters ................................................................................................. 20 
4. 
Real Discount Rate (RDR)......................................................................................... 20 
4.1. 
General Salary Growth (GSG) ................................................................................... 22 
4.2. 
4.3. 
Individual Salary Progression (ISP)........................................................................... 22 
4.3.1.  Population groups ...................................................................................................... 22 
4.3.2.  Turnover..................................................................................................................... 23 
ISP rates ..................................................................................................................... 24 
4.3.3. 
Loading factor for orphan’s and divorced spouse’s pension ..................................... 24 
4.4. 
Annuities .................................................................................................................... 25 
5. 

APPENDIX II – INDEPENDENT EXAMINATION ............................................................. 26 

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1. 

INTRODUCTION 

Article 83a and Annex XII of the Staff Regulations set out rules to guarantee the equilibrium 
of the PSEO (Pension Scheme of European Officials). 

Annex  XII  lays  down  rules  for  implementing  Article  83a  of  the  Staff  Regulations.  In 
particular, it stipulates that: 

–  Eurostat  is  the  authority  responsible  for  the  technical  implementation  of  the 

Annex (see Article 13(1)), 

–  Eurostat will be assisted by one or more qualified independent experts in carrying 

out the actuarial assessments (see Article 13(2)), 

–  each  year  on  1  September,  Eurostat  is  to  submit  a  report  on  the  assessment  and 

updating referred to in Article 1 of the Annex (see Article 13(3)), 

–  any questions of methodology raised by the implementation of the Annex shall be 
dealt  with  by  Eurostat  in  cooperation  with  national  experts  from  the  relevant 
departments of the Member States and the qualified independent expert or experts 
(see Article 13(4)). 

Eurostat has drawn up the present report in accordance with the above legal requirements. The 
second five-yearly actuarial assessment of the pension scheme of the European civil service 
was  carried  out  in  2008.  This  report  sets  out  the  results  of  the  2010  update  of  this  2008 
actuarial assessment, based on the population of European officials as at 31 December 2009. 

The  report  provides  the  information  needed  by  the  Commission  to  propose,  if  necessary, 
changes to the staff contribution rate in order to ensure the balance of the scheme. 

For any further information concerning this report, please contact Eurostat in Luxembourg: 

Eurostat, Unit C-6 Secretariat 
BECH – A2/018 
L-2920 Luxembourg 
Tel.: (352) 4301-34191 

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2. 

CONTRIBUTION RATE 

The  2010  actuarial  assessment  of  the  Pension  Scheme  for  European  Officials  (PSEO) 
indicates that, in order to guarantee the equilibrium of the scheme, the contribution rate 
necessary  to  finance  one  third  of  the  benefits  payable  would  be  11.0%  of  the  basic 
salary (or invalidity or termination of service allowance). This actuarial assessment has 
been  made  in  accordance  with  the  agreed  methodology.  It  was  discussed  by  the 
Article 83  Working  Group  at  the  30  June  2010  meeting  and  has  been  reviewed  and 
approved by independent actuarial consultants. 

The  calculated  contribution  rate  indicated  above  (11.0%)  is  one  third  of  the  ratio 
between the total of the service cost (1 181 million Euros) and the total of annual basic 
salaries  (3  574  million  Euros)  (see  Appendix  I,  Tables  I  and  II).  This  rate  is  lower  (-
0.3%) than the one calculated in 2009 (11.3%). This change is analysed in point 4. 

3. 

UPDATE OF THE ASSESSMENT OF THE ACTUARIAL BALANCE 

The PSEO was assessed on the basis of the computation method set out in Chapter 2 of 
Annex XII of the Staff Regulations. 

Compared to the 2009 assessment, some changes were introduced in the methodology, 
notably in the treatment of staff turnover and invalidity before retirement. 

An updated document concerning the calculation methodology is available and can be 
obtained from Eurostat on request. 

In addition, the following elements have been considered in the 2010 assessment: 

–  The population of contributing members at 31 December 2009, 

–  The update of Individual Salary Progressions (ISP), which are now decoupled from 

the issue of staff turnover. 

More details about these updates are given in Appendix I. 

4. 

ANALYSIS OF THE CONTRIBUTION RATE CHANGE 

Changes to the pension contribution rate result from the combined effect of changes in 
the population structure, in actuarial assumptions and in the methodology. The separate 
impact  of  these  changes  in  the  officials'  contribution  rate  change  is  not  easy  to 
determine due to their interdependency, although analysis of the actuarial assumptions 
allows  a  better  understanding  of  the  changes  in  contribution  rate  and  its  sensitivity  to 
the various actuarial assumptions. 

As  indicated  in  point  1,  the  official’s  pension  contribution  rate  calculated  this  year 
(11.0%)  is  lower  than  the  one  calculated  in  2009  (11.3%).  This  decrease  (-0.3 
percentage points) is mainly explained by improvements in the methodology, notably in 
the  incorporation  of  staff  turnover  (-0.2%  percentage  points),  the  update  of  the 
invalidity  table  (-0.1  percentage  points)  and  by  the  fact  that  the  Real  Discount  Rate 
(RDR)  and  the  General  Salary  Growth  (GSG)  have,  exceptionally  this  year,  remained 

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stable. It should be remembered that past increases of the contribution rate in the period 
2004  –  2009,  from  9.75%  to  11.3%  (current  applied  rate)  are  mainly  due  to  the 
progressive yearly decrease of the RDR from 3.9% (rate used in the 2004 assessment) to 
2.8% (rate used in the 2009 assessment). 

Changes  in  actuarial  assumptions  and  their  impact  on  the  contribution  rate  were 
presented in detail at the 30 June 2010 meeting of the Article 83 Working Group (see 
document 20100624 Art83_05). 

4.1. 

Real Discount Rate (RDR) 

The  RDR  (2.8%)  used  in  2010  calculation  is  the  same  as  in  the  2009  assessment. 
Consequently no effect is observed this year in the pension contribution rate. 

4.2. 

General Salary Growth (GSG) 

The  GSG  (0.3%)  used  in  2010  calculation  is  the  same  as  in  the  2009  assessment. 
Consequently no effect is observed this year in the pension contribution rate. 

4.3. 

Individual Salary Progression (ISP) 

In the 2010 calculation, staff turnover was treated as a separate issue from the ISP. In 
previous  years  the  ISP  tables  for  certain  categories  of  staff  had  reflected  the  inherent 
tendency for staff turnover in these categories. Separate modelling of staff turnover in 
the 2010 calculation required a recalculation of ISPs, which reflected individual salary 
progressions over the time actually spent in service. 

The  share  of  staff  with  non-permanent  employment  contracts  (most  Temporary  and 
Contract agents) in the total of active staff has increased significantly since 2004. The 
expected  salary  progression  of  these  categories  is  smaller  than  that  of  officials  due  to 
their high turnover. In addition, Parliamentary Assistants, a new category included this 
year for the first time has an ISP equal to 0%. The improvements in the methodology to 
better integrate turnover and the new calculated ISP rates slightly decrease the service 
cost and thus the pension contribution rate to finance it.  

The  effect  of  using  new  ISP  rates  can  not  be  isolated  due  to  the  implicit  change  in 
methodology. The impact of both elements (ISP and turnover computation) is explained 
in point 4.11. 

4.4. 

Invalidity table 

The table of probabilities of becoming an invalid was updated, with the most recently 
observed invalidity rates (2009) also being taken into account. The new invalidity table 
(2009 EU Invalidity table) is thus an average of 5 years invalidity rates (2005 – 2009). 
The use of this updated table has had an impact of around -0.1 percentage points. This 
impact  is  explained  by  the  fact  that  the  probability  of  becoming  invalid  by  age 
according  to  the  2009  invalidity  table  has  decreased  in  comparison  with  the  2008 
version (see further explanation in appendix I, point 3.3).Consequently the service cost 
for invalidity to be financed by the pension contribution rate has decreased.  

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4.5. 

Life table (healthy persons) 

According to the Staff Regulations the life table may be updated only on the occasion of 
the five-yearly actuarial assessment1. The current life table was updated on the occasion 
of the 2008 actuarial assessment and this table, 2008 ICSLT, must be used at least until 
the next five-yearly assessment in 2013. 

The  life  table  used  in  the  2010  calculation  is  thus  identical  to  that  used  in  the  2008 
calculation and there is no impact on the calculated contribution rate due to a change in 
the table. 

4.6. 

Life table (invalid persons) 

It is normal actuarial practice to consider life expectancy of invalids as slightly shorter 
than that of healthy persons (e.g. EuroControl applies the mortality rate corresponding 
to a healthy person 3 years older than an invalid’s age). Eurostat considers this approach 
very  logical  and  applied  this  actuarial  practice  for  the  first  time  in  the  2008  pension 
assessment, and again in 2009. 

The same practice was applied in the 2010 calculation, and since the life table used in 
the  2010  calculation  is  identical  to  that  used  in  the  previous  calculation,  there  is  no 
impact on the calculated contribution rate due to a change in the table. 

4.7. 

Assumed retirement age 

Assumed  retirement  ages  by  staff  categories  groups  were  first  estimated  for  the  2004 
pension  assessment,  and  were  presented  at  the  June  2004  meeting  of  the  Article  83 
Working  Group.  As  provided  for  in  paragraph  3  of  Article  83(a)  of  the  Staff 
Regulations these assumed retirement ages were checked in 2008, on the occasion of the 
second five-yearly actuarial assessment, and no change was proposed for the following 
five-year period.  

The assumed retirement ages are therefore identical to those used since 2004 and there 
is no impact on the calculated contribution rate due to a change in assumed retirement 
age. 

4.8. 

Average difference between men and women 

The  average  age  difference  between  married  men  and  women  (3  years)  that  has  been 
applied  since  2004  in  actuarial  calculations  was  checked  in  2008,  and  found  to 
correspond to reality. The test showed that on average married men are 3.01 years older 
than their partners and married women 3.18 years younger than their partners. 

Since the average difference in age is unchanged, there is no impact on the calculated 
contribution rate due to a change in this age difference. 

1 

Article 9(2) of Annex XII to the Staff Regulations. 

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4.9. 

Probability of being married for men and women 

The probabilities of being married for officials and ex-officials aged more than 59 were 
reassessed in 2008, and updated probabilities were presented at the June 2008 meeting 
of the Article 83 Working Group. No change was proposed at the June 2010 meeting of 
the Article 83 Working Group. 

Since the probability of being married is unchanged, there is no impact on the calculated 
contribution rate from a change in probabilities of being married for men and women. 

4.10.  Loading factor for orphan’s and divorced spouse’s pension 

Current actuarial practice is to add 10% to a payable reversion pension to allow for the 
pension payable to orphans after the death of the surviving spouse (or of the official if 
there  is  no  surviving  spouse)  and  any  pension  payable  to  divorced  spouses.  Eurostat 
estimates  that  the  impact  of  this  factor  on  the  contribution  rate  is  minor  and  does  not 
consider an update to this assumption necessary at the present time.  

Since  the  loading  factor  for  pensions  payable  to  orphans  and  divorced  spouses  is 
unchanged, there is no impact on the calculated contribution rate due to a change in the 
loading factor. 

4.11.  Methodological changes 

In parallel to the change in ISP computation (see point 4.3), staff turnover is computed 
separately in the 2010 pension assessment. For this, the methodology of calculation has 
been  improved  and  some  new  actuarial  assumptions  have  been  defined.  The  updated 
methodology was presented at the June 2010 meeting of the Article 83 Working Group. 

The implementation of the improved methodology concerning turnover and the use of 
the  new  ISP  rates  has  had  a  combined  impact  of  around  -0.2  percentage  points  in  the 
pension contribution rate. 

4.12. 

Population change effect 

The  yearly  population  change  has  not  had  a  significant  impact  in  the  pension 
contribution rate calculated this year. This impact can only be observed on a cumulated 
basis  over  a  longer  period  of  time.  The  same  contribution  rate  is  obtained  if  the 
population at 31.12.2008 is used instead of this at the 31.12.2009. 

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5. 

COMPUTATION SYSTEM  

5.1. 

Variables used in the assessment 

In general, two kinds of variables are used in the actuarial calculation: 

Parameters. These are values mainly linked to the application of the Staff Regulations. 
These values change according to certain conditions related to the individual situation of 
each official (e.g. the annual accrual rate is 1.9% for staff recruited from 01.05.2004 and 
2% for those recruited before this date). These values can be clearly established.  

Actuarial assumptions. These are values that are not known and cannot be established 
exactly, such as the invalidity table, the ISP table, the probability of being married at the 
retirement  date,  the  loading  factor  for  orphans  and  divorced  spouses.  The  values  of 
these actuarial assumptions are estimated in accordance with general actuarial practices 
and discussed with national experts from the relevant departments of the Member States 
at the annual meetings of the Article 83 Working Group, and reviewed by independent 
actuarial consultants. 

A summary of the main variables used (parameters and actuarial assumptions) is given 
in Appendix I, Tables III and IV. 

5.2. 

Demographic parameters 

The reference population is made up of contributing members of the PSEO including: 

–  active officials,  

–  members whose pension contribution is optional (e.g. officials who have taken leave 

on personal grounds or parental leave), 

–  invalids  who  receive  an  invalidity  allowance  under  Article  78  of  the  Staff 

Regulations, 

–  beneficiaries of an allowance for termination of service. 

54  223  contributing  members  were  recorded  at  31.12.2009,  which  represents  a  net 
increase  of  4  270  participants  compared  to  the  previous  year  (at  31.12.2008,  49  953 
were used in the 2009 actuarial assessment) 

This  significant  increase  in  the  population  is  mainly  explained  by  the  continuing 
recruitment of “contract agents” (a new category of population defined in the 2004 Staff 
Regulations)  and  temporary  agents,  and  the  incorporation  into  the  population  of 
Parliamentary Assistants (a new category in 2009). 

There  are  8  966  contract  agents  among  the  contributing  members  at  31.12.2009,  as 
against 7 654 at 31.12.2008, which represents an increase of 17.14%. There are 8 001 
temporary  agents  among  the  contributing  members  at  31.12.2009,  as  against  7  044  at 
31.12.2008,  an  increase  of  13.59%.  In  addition,  1381  Parliamentary  Assistants  were 
included in the reference population for the first time this year. 

A  breakdown  of  the  reference  population  by  type  of  contributing  member  and  by 
Institution or Agency is included in Appendix I, Tables VI to VIII. 

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5.3. 

Economic parameters 

In accordance with Articles 10 and 11 of Annex XII to the Staff Regulations, the Real 
Discount Rate (RDR) and the General Salary Growth (GSG) are calculated in the 2010 
update  as  the  average  of  the  corresponding  rates  for  the  12  preceding  years  (for  more 
information  see  Appendix I  to  this  report,  points  5.4.1  and  5.4.2  and  Tables  XIV  and 
XV). 

The value of the RDR is 2.8% and that of the GSG is 0.3% (these are the same values 
as those used in the 2009 assessment). Finally, an updated ISP table has been used (see 
Appendix I, point 5.4.3).  

5.4. 

Technical implementation of Annex XII to the Staff Regulations 

Technical  questions  raised  by  the  implementation  of  Annex  XII  are  dealt  with  by 
Eurostat  in  cooperation  with  national  experts  from  the  relevant  departments  of  the 
Member  States  participating  in  the  Working  Group  on  Article  83  of  the  Staff 
Regulations.  The  minutes  of  the  meeting  held  in  Luxembourg  on  30  June  2010  (doc. 
20100624_Art83WG _09) are available from Eurostat. 

Eurostat  also  exchanges  relevant  information  on  actuarial  issues  with  international 
organisations  such  as  the  JPAS  (Joint  Pensions  Administrative  Section  of  the 
Coordinated Organisations), EPO (European Patent Office) and EuroControl. 

5.5. 

Independent examination 

In  accordance  with  Annex  XII,  Article  13,  of  the  Staff  Regulations,  Eurostat  was 
assisted  by  a  qualified  independent  expert  with  regard  to  the  methodological 
implementation  and  the  definition  and  calculation  of  the  corresponding  actuarial 
assumptions. 

The independent expert then conducted an actuarial examination of the contribution rate 
calculated  by  Eurostat.  This  examination  consisted  in  confirming  the  relevance  and 
reliability  of  the  actuarial  processes  and  assumptions  used  in  accordance  with  the 
methodology described in Annex XII to the Staff Regulations. 

For the aspects not described explicitly in Annex XII, the independent expert checked 
their  compliance  with  generally  accepted  actuarial  practices.  Concerning  actuarial 
assumptions,  the  independent  expert  carried  out  investigations  to  ensure  that  the 
underlying data provided by Eurostat were used correctly. 

The  executive  summary  of  the  assessment  by  the  independent  expert  is  included  in 
Appendix II to this report. 

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APPENDIX I - COMPUTATION 

1. 

RELEVANT FIGURES FOR CALCULATING THE CONTRIBUTION RATE 

Table I. 

Breakdown of the contribution rate 

Service cost

Total contribution rate 
(3/3)

Staff contribution rate 
(1/3)

Service cost for retirement

Service cost for invalidity

Service cost for death

Total service cost

30.2%

1.8%

1.1%

33.1%

10.1%

0.6%

0.3%

11.0%

Table II. 

Service cost and total amount of annual basic salaries 

Service cost

Total (EUR million)

%

- Service cost for retirement

- Service cost for invalidity

- Service cost for death

Total service cost

Total annual basic salaries and 
invalidity and termination 
allowances

1 078

 65

 38

1 181

3 574

91.3%

5.5%

3.2%

100.0%

100.0%

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2. 

SUMMARY OF MAIN VARIABLES 

The  following  tables  show  the  values  of  the  main  parameters  (see  Table  III)  and 
actuarial  assumptions  (see  Table  IV).  Please  note  that  the  tables  only  present  an 
overview  of  the  main  variables  and  are  not  exhaustive.  Please  refer  to  the  Staff 
Regulations and their annexes for precise and complete information. 

Table III. 

Parameters used in the actuarial assessment 

Parameter

Legal source

Value
Staff Regulations in force from 
01.05.2004

Reference date for the population (Annex XII Article 1)

31.12.2009

Maximum official retirement age (Staff Regulations 
Article 52)

65 (67 on an exceptional basis)

Minimum official retirement age (Staff Regulations Article 
52 and Annex XIII Article 22)

63 or before for officials in service 
before 01.05.2004

Minimum age for early retirement (Staff Regulations 
Article 52, Annex VIII Article 9 and Annex XIII Article 23)

55 or before for officials in service 
before 01.05.2004

Category and grade for the minimum subsistence figure 
(Annex VIII Article 6)

first step of grade 1

Maximum retirement pension (Staff Regulations Article 
77)

70% of the basic salary at the 
retirement date

Annual accrual rate (Article 77 of the Staff Regulations 
and Article 21 of Annex XIII)

1.9% or 2% for officials recruited before 
01.05.2004

Bonus for officials in service after the normal retirement 
age (Annex VIII Article 5 and Annex XIII Article 22)

Barcelona incentive

Minimum retirement pension (Staff Regulations Article 
77)

4% of the minimum subsistence figure 
per year of service

Invalidity allowance (Staff Regulations Article 78)

70% of the basic salary

Minimum invalidity allowance (Staff Regulations Article 
78)

100% of the minimum subsistence 
figure

Reversion pension (Staff Regulations Article 79 and 
Annex VIII Article 18)

Minimum reversionary pension (Staff Regulations Article 
79 and Annex VIII Article 18)

60% of the retirement pension

35% of the last basic salary

Survivor's pension (Staff Regulations Article 79 and 
Annex VIII Article 17)

60% of the retirement pension that 
would have been payable to the official 

Minimum survivor's pension (Staff Regulations Article 
79)

35% of the last basic salary or minimum 
subsistence figure

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Table IV. 

Actuarial assumptions 

Actuarial assumption

Average age difference between married men and 
women

Probability of being married for men

Probability of being married for women

Value

3 years

84%

38%

Marital status

status at evaluation date

Coefficient for orphan's and divorced spouse's pension

Annex VIII coefficient (correction coefficient)

Assumed retirement age

Real discount rate (RDR)

General salary growth (GSG)

10%

0.0%

63 to 64

2.8%

0.3%

General pension revaluation (GPR)

0.3% (equal to the GSG)

Individual salary progression (ISP)

Mortality table (healthy people)

Mortality table (Invalids)

2009 ISP table

2008 ICSLT

Mortality rate corresponding to a person 3 
years older than healthy person

Invalidity table

2009 EU Invalidity table

Many of these actuarial assumptions are explained in the following points. Some of 
them have changed compared to the 2009 actuarial assessment. The following table 
summarises these changes: 

Table V.  Changes in actuarial assumptions 

Assumption

Assessment

Real Discount Rate (RDR) (1)

General Salary Growth (GSG) (1)

ISP-1. Individual Salary Progression of Officials, 
recruited before 01.05.2004 (2)

ISP-2. Individual Salary Progression  of 
Officials, recruited from 01.05.2004 onwards (2)

ISP-3. Individual Salary Progression of 
Temporary Agents (3)

ISP-4. Individual Salary Progression of Contract 
Agents (3)

ISP-5. Individual Salary Progression of 
Parliamentary Assistants (4)

2009

2.8%

0.3%

1.5%

1.9%

0.4%

0.2%

n/a

2010

2.8%

0.3%

1.5%

2.1%

1.6%

1.0%

0.0%

Life

Invalidity

2008 ICSLT

2008 ICSLT

2008 EU Invalidity 
table

2009 EU Invalidity 
table

(1) Average of 12 years preceding the year of the assessment
(2) Average of individual rates weighted by population as at 31.12.2009
(3) 2009 estimated rate takes account of turnover. In 2010 assessment turnover is considered 
      separately in calculation
(4) New category of personnel included in the 2010 assessment by the first time

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3. 

DEMOGRAPHIC PARAMETERS 

3.1. 

Reference population 

Annex  XII,  Article  1  of  the  Staff  Regulations  stipulates  that  the  actuarial  assessment 
shall be carried out in each year n, on the basis of the population of active members of 
the PSEO at 31 December of the previous year (n-1). Moreover, Article 9 of Annex XII 
provides that the population of participants in the scheme is to be collected annually by 
the Commission using information received from the different institutions and agencies 
whose staff are members of the scheme. 

In  accordance  with  these  rules,  the  reference  population  is  taken  to  be  the  staff  at  31 
December 2009 of the 49 institutions and agencies (40 were recorded at 31 December 
2008) whose officials are members of the PSEO. 

Table VI. 

Institutions and Agencies in the PSEO 

Abbr.

Name

Abbr.

Name

Institutions or assimilated organisms

Agencies (next)

COR

COMMITEE OF THE REGIONS

EUROFOUND EUROPEAN FOUNDATION FOR THE IMPROVEMENT OF 

LIVING AND WORKING CONDITIONS

CONSIL

COUNCIL OF THE EUROPEAN UNION

EIGE

EUROPEAN INSTITUTE FOR GENDER EQUALITY

CDCE

COURT OF AUDITORS

EIT

EUROPEAN INSTITUTE OF INNOVATION AND 
TECHNOLOGY

COJED

COURT OF JUSTICE OF EUROPEAN COMMUNITIES

EMSA

EUROPEAN MARITIME SAFETY AGENCY

CSC

ECONOMIC AND SOCIAL COMMITTEE

CEC

EUROPEAN COMMISSION

EDPS

EUROPEAN DATA PROTECTION SUPERVISOR

EMCDDA

EUROPEAN MONITORING CENTRE FOR DRUGS AND 
DRUG-ADDICTION

EFRA

ENISA

EUROPEAN MONITORING CENTRE FOR RACISM AND 
XENOPHOBIA

EUROPEAN NETWORK AND INFORMATION SECURITY 
AGENCY

EO

EUROPEAN OMBUDSMAN

CEPOL

EUROPEAN POLICE COLLEGE

EUROPARL

EUROPEAN PARLIAMENT

ERA

EUROPEAN RAILWAYS AGENCY

Agencies

FRONTEX

AGENCY FOR THE MANAGEMENT OF OPERATIONAL CO-
OPERATION AT EXTERNAL BORDERS OF MEMB

ARTEMIS

ARTEMIS JOINT UNDERTAKING

SKY

CLEAN SKY JOINT UNDERTAKING

ERC

EUROPEAN RESEARCH COUNCIL EXECUTIVE AGENCY

ETF

EUROPEAN TRAINING FOUNDATION

EACI

EAA

EXECUTIVE AGENCY FOR CONPETITIVENESS AND 
INNOVATION

EXECUTIVE AGENCY FOR THE PUBLIC HEALTH 
PROGRAM

CFCA

COMMUNITY FISHERIES CONTROL AGENCY

FCH

FUEL CELLS AND HYDROGEN JOINT UNDERTAKING

CPVO

COMMUNITY PLANT VARIETIES OFFICE

EACEA

EDUCATION, AUDIOVISUAL AND CULTURE EXECUTIVE 
AGENCY

IMI

JET

INNOVATIVE MEDICAMENTS INITIATIVE JOINT 
UNDERTAKING

JOINT EUROPEAN TORUS (J.E.T.)

ENIAC

ENIAC JOINT UNDERTAKING

EUROJUST

JUDICIAL COOPERATION

EAR

EUROPEAN AGENCY FOR RECONSTRUCTION

OHIM

OFFICE FOR HARMONISATION IN THE INTERNAL 
MARKET

OSHA

EMEA

EUROPEAN AGENCY FOR SAFETY AND HEALTH AT 
WORK

EUROPEAN AGENCY FOR THE EVALUATION OF 
MEDICAL PRODUCTS

REA

RESEARCH EXECUTIVE AGENCY

SSR

SESAR JOINT UNDERTAKING

EASA

EUROPEAN AVIATION SAFETY AGENCY

ECHA

THE EUROPEAN CHEMICALS AGENCY

ECDC

CEDEFOP

EUROPEAN CENTRE FOR DISEASE PREVENTION AND 
CONTROL

EUROPEAN CENTRE FOR THE DEVELOPMENT OF 
VOCATIONAL TRAINING

EEA

EUROPEAN ENVIRONMENT AGENCY

EFSA

EUROPEAN FOOD SECURITY AUTHORITY

GSA

THE EUROPEAN GNSS SUPERVISORY AUTORITY

ITER

TNT-T

CDT

THE EUROPEAN JOINT UNDERTAKING FOR ITER AND 
THE DEVELOPMENT OF FUSION ENERGY

THE TRANS-EUROPEAN TRASNPORT NETWORK 
EXECUTIVE AGENCY

TRANSLATION CENTRE FOR BODIES OF THE 
EUROPEAN UNION

As approved by the Article 83 Working Group at its meeting of 7 June 2004, the term 
“active members of the PSEO” is considered in the wide sense to be synonymous with 
“contributing members of the PSEO”. Consequently, the reference population includes 
not  only  officials  in  “active  employment”  but  also  officials  in  one  of  the  other 
administrative statuses set out in Article 35 of the Staff Regulations, plus invalids who 

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13 

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receive  an  invalidity  allowance  and  beneficiaries  of  an  allowance  for  termination  of 
service. 

Personnel data were collected from the NAP2 (New Application for Pay), from PMO3 
and  directly  from  institutions  and  agencies,  and  imported  into  the  Eurostat  database. 
The data were checked to guarantee a high level of quality. The actuarial assessment is 
based on the output from the Eurostat database at the calculation date. 

Table VII. 

Reference population by administrative status 

Contributing members

31.12.2008

31.12.2009

Total

Weight

Total

Weight

Yearly
change

Active

- Officials

34 509

69.1%

35 206

64.9%

2.0%

- Temporary staff

7 044

14.1%

8 001

14.8%

13.6%

- Contract staff

7 654

15.3%

8 966

16.5%

17.1%

- Parliamentary Assistant

n/a

n/a

1 381

2.5%

n/a

Non-active staff (1)

 746

1.5%

 669

1.2%

-10.3%

Total population

49 953

100.0%

54 223

100.0%

8.5%

(1).  Non-active status (Article 41), retirement in the interests of the service (Article 50), termination of service under 

special measures ("degagement"), invalids who receive an invalidity allowance under Article 78.

This increase in the population is mainly explained by the recruitment of contract agents 
and temporary agents, and the incorporation of Parliamentary assistants. 

2 

3 

The  NAP  application  is  a  centralised  database  that  has  been  created  to  produce  the  monthly  salary  and 
pension forms for all institutions and agencies. This database contains a large part of the personnel data, 
particularly amounts paid and pension contributions. 
PMO use the Sysper database of the Commission to store data about transfers of pension rights of the staff 
of the Commission and agencies, and data about pensioners. 

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14 

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Table VIII.  Reference population by institution or agency 

Institution or Agency

31.12.2008

31.12.2009

Total

%

Total

%

European Commission

31 340  

63%

31 809  

59%

European Parliament

6 320  

13%

7 943  

15%

Council of the European Union

3 362  

7%

3 533  

7%

Court of Justice of the European 
Communities

1 998  

4%

2 162  

4%

Court of Auditors

 876  

2%

 979  

2%

Economic and Social Committee

 746  

1%

 808  

1%

Committee of the Regions

 524  

1%

 593  

1%

Other small institutions and decentralised 
Community agencies 

4 787  

10%

6 396  

12%

Total

49 953  

100%

54 223  

100%

Figure I. 

Reference population by age 

s
e
g
A

>64

60 - 64

55 - 59

50 - 54

45 - 49

40 - 44

35 - 39

30 - 34

25 - 29

20 - 24

Men:      24058

Women: 30165

6,000

5,500

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500 0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

3.2. 

Assumed retirement age 

Num ber of persons

As stipulated in Article 4 of Annex XII to the Staff Regulations, it is assumed that all 
retirements  will  occur  at  a  fixed  average  age  (r).  The  average  retirement  age  may  be 
different according to the group of staff. 

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15 

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Table IX. 

Assumed retirement age and Barcelona incentive by age group of officials 

Staff group (age and years of 
service as at 30.04.2004)

Annual 
accrual rate

Barcelona 
incentive

(1)

Barcelona 
incentive 
maximum
(2)

Normal 
retirement 
age
(3)

Assumed retirement 
age (4)

Actives

Invalids

Group 1 Old Staff Regulations

2.00%

Group 2

>= 50 years old or    >= 
20 years of service

2.00%

(5)

Group 3

40 - 49 years old and < 
20 years of service

Group 4

35 - 39 years old and < 
20 years of service

Group 5

30 - 34 years old and < 
20 years of service

Group 6

< 30 years old and     < 
20 years of service

Group 7

New officials (after 
30.04.2004)

2.00%

3.00%

4.50%

2.00%

2.75%

4.00%

2.00%

2.50%

3.50%

2.00%

2.00%

1.90%

2.00%

-

-

60  

60  

61  

62  

63  

63  

63  

63  

63  

63  

63  

64  

64  

64  

65  

63  

63  

63  

64  

64  

64  

(1) The Barcelona incentive corresponds to an increase in pension expressed as a percentage of the last basic salary 
(Article 5 of Annex VIII and Article 22 of Annex XIII).

(2)  The Barcelona incentive maximum is a percentage of the total pension rights acquired by an official at the age of 
60 (Article 5 of Annex VIII and Article 22 of Annex XIII).
For example, the Barcelona incentive for officials aged between 40 and 49 is 3% of the last basic salary but not 
exceeding 4.5% of the pension rights acquired by those officials at the age of 60.

(3)  The age in this column is the simple average of ages from the table detailed in Article 22 of Annex XII, rounded to 
entire year. This average is calculated only to facilitate the presentation in this table.
In practice, institutions apply the table detailed in Article 22 of Annex XIII when calculating individual rights. Eurostat 
does not use this column when calculating the contribution rate for pension; assumed retirement ages detailed in 
columns (4) are used instead.

(4)  In accordance with to Article 3 of Annex XII, it is assumed that all retirements (except for invalidity) will occur at a 
fixed average age.

This column shows these average ages by staff group, which have been deduced from the observations in 
accordance with Article 9 of Annex XII.

(5)  Officials, aged 50 years or over or with 20 or more years service as at 30/04/2004, who remain in service after the 
normal retirement age are entitled, for each year worked after that age, to an increase in 
their pension equal to 5% of the amount of the pension rights acquired at the age of 60 (the same premise was 
applied in the past under the former Staff Regulations)..

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16 

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3.3. 

Invalidity table  

A first invalidity table (2004-EU Invalidity table) was used in the 2004, 2005 and 2006 
assessments of the PSEO. This invalidity table was presented to the Article 83 Working 
Group at its 7 June 2004 meeting. 

The table was updated on the occasion of the 2007 actuarial assessment to take account 
of the evolution of beneficiaries of invalidity allowance (a new category of population 
under  the  new  Staff  Regulation  in  force  from  1  May  2004).  This  new  table  was 
presented to the Article 83 Working Group at its 26 June 2007 meeting (see document 
20070623 Art83 WG 07 Assumptions EN, available on CIRCA) and it was decided to 
update  the  table  each  year  using  as  input  a  moving  average  of  5  years  of  invalidity 
observation. 

The  number  of  invalids  recorded  in  2004  (103)  has  been  replaced  by  the  number 
recorded in 2009 (93) in the moving 5 years average of invalidity observations. Thus the 
total of invalids in this 5-year period decreased from 510 to 500 invalids 

The following table shows the number of invalids from 2005 to 2009. 

Table X. Invalids by year 

Year
2005
2006
2007
2008
2009
Total

Invalids
122
108
88
89
93
500

The decrease in the  number  of invalids, in conjunction with the increase of the active 
population makes the probability of becoming an invalid lower than in the past. 

The 2005 to 2009 invalidity observations have been used to update the invalidity table 
by  sex  (2009-EU  Invalidity  table).  The  following  table  is  an  extract  from  the  unisex 
version of the table. The unisex version is only used for presentation; the complete table 
by sex is used in computation. 

Table XI. 2009-EU Invalidity table — Unisex version 

Age

x
20
25
30
35
40
45
50
55
60
65

Invalidity (probability of 
becoming an invalid)

q'x
0.000050
0.000072
0.000147
0.000404
0.001259
0.002260
0.003791
0.006010
0.005328
0.002653

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17 

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3.4. 

Life table of healthy persons 

The life table used for the calculation was updated in 2008 (2008 ISCLT table) on the 
occasion of the five-yearly assessment of the actuarial balance of the pension scheme. 
The methodology used to set up this life table was presented to the Article 83 Working 
Group  at  the  27 June 2008  meeting  (document  20080627  Art83_05,  available  from 
Eurostat).  The  2008  ISCLT  life  table  must  be  used  at  least  until  the  next  five-yearly 
assessment in 2013. 

Consequently, the 2008 ICSLT has been used in the 2010 pension assessment. 

The following table is an extract from this table: 

Table XII. 

2008 ICSLT 

Men

Women

Dying 
probability

Life 
expectancy

Desease

Living 
individuals

Dying probability

Life 
expectancy

qx
0.00063370
0.00106107
0.00176523
0.00282667
0.00481751
0.00838934
0.01458993
0.02531453
0.04374552
0.07506895
0.12727809

ex
44
39
35
30
25
21
17
13
10
8
5

dx
57
 94
156
250
 411
696
1 154
1 844
2 758
3 681
4 026

lx
98 573
98 187
97 542
96 494
94 813
91 962
87 190
79 451
67 558
50 912
31 080

qy

0.00054775
0.00092086
0.00152344
0.00242203
0.00372321
0.00605132
0.01074871
0.01863843
0.03307728
0.05836406
0.10193574

ey
46
42
37
32
28
23
19
15
12
9
6

Age

x, y
40
45
50
55
60
65
70
75
80
85
90

3.5. 

Life table of invalids 

It is normal actuarial practice to consider life expectancy of invalids as slightly shorter 
than that of healthy persons (e.g. EuroControl applies the mortality rate corresponding 
to  a  healthy  person  3  years  older  than  an  invalid’s  age).  This  approach  cannot  be 
confirmed in the case of European civil servants as the number of invalids is too small. 
Eurostat considers this approach very logical and has applied the same actuarial practice 
in its own actuarial calculations. 

The  use  of  this  approach  makes  hardly  any  change  in  the  contribution  because  the 
probability of an active staff member becoming invalid is very small. 

The implementation of this approach in the 2008 pension assessment had a negligible 
impact, close to 0 percentage points, on the pension contribution rate. 

3.6. 

Average age difference between men and women  

The  average  age  difference  between  married  men  and  women  (3  years)  that  has  been 
applied  from  2004  in  actuarial  calculations  should  be  used  in  future  assessments.  The 
result  of  a  test  based  on  population  from  2004  to  2007  confirmed  that  this  actuarial 
assumption  corresponds  to  reality.  The  test  showed  that  on  average  married  men  are 
3.01  years older than  their  partners and married women 3.18 years younger than their 
partners. 

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18 

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3.7. 

Probability of being married for men and women 

In 2008 Eurostat analysed the recent population of officials and ex-officials older than 
59 years and calculated the probability of them being married. The probabilities found 
for men and women are:  

0.84 for men (0.8 to one decimal place) 

0.38 for women (0.4 to one decimal place) 

These updated probabilities were used in the 2008 and in this 2010 pension assessment. 

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19 

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4. 

ECONOMIC PARAMETERS 

4.1. 

Real Discount Rate (RDR) 

Annex XII, Article 10 of the Staff Regulations provides that:  

1. The interest rates to be taken into consideration for the actuarial calculations shall 
be based on the observed average annual interest rates on the long-term public debt of 
Member States as published by the Commission. An appropriate consumer price index 
shall be used to calculate the corresponding interest rate net of inflation as needed for 
the actuarial calculations.  

2. The effective annual rate to be taken into consideration for the actuarial calculations 
shall  be  the  average  of  the  real  average  interest  rates  for  the  12  years  preceding  the 
current year.  

Consequently,  real  discount  rates  (RDR)  from  1998  until  2009  have  to  be  used  in  the 
2010 assessment of the PSEO.  

Nominal  discount  rate:  Average  of  1998  to  2009  nominal  rates  of  Euro  area  zero-
coupon  (government  bonds)  yield  with  a  maturity  of  21  years,  21  years  being  the 
duration of the scheme, the rate in 2008 as produced by the ECB being 4.4%): .5.0%  

Inflation rate: Average of 1998 to 2009 appropriate consumer price index; the HICP of 
EU area in 2009 being 1.0%: 2.1% 

Real  discount  rate:  Average  of  1998  to  2009  real  discount  rates;  the  last  being 
calculated  as  "100*(100+NDR)/(100+IR)-100)":  2.8%  (it  was  the  same  in  the  2009 
assessment). 

The 12 years moving average of real discount rates (RDR) that has been calculated this 
time  (2.8%),  will  be  used  in  the  final  assessment  of  the  PSEO  to  be  published  by  1 
September 2010. 

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20 

   EN 

Table XIII. Real Discount Rate (RDR)  

Year

1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Aver. 1997 - 2008
Aver. 1998 - 2009

Nominal rate 
(NDR)
(1)
6.1
4.9
5.6
5.9
5.7
5.5
5.1
5.0
4.0
4.2
4.5
4.8
4.7
5.1
5.0

Inflationrate  (IR) Real discount rate (RDR)

(2)
2.1
1.7
1.1
2.4
2.5
2.2
2.0
2.1
2.2
2.2
2.3
3.7
1.0
2.2
2.1

(3)
3.9
3.1
4.5
3.4
3.1
3.2
3.0
2.8
1.8
2.0
2.2
1.1
3.7
2.8
2.8

(1) 

(2) 

Till 1998: long-term government borrowing rates. Since 1999: Euro zero-coupon 
government bond curve with a maturity of 21 years.

Till 1998: National Accounts private consumption deflator. Since 1999: Harmonised 
Index of Consumer Prices (HICP).

(3) 

The following formula is used: RDR = 100*(100+NDR)/(100+IR)-100

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21 

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4.2. 

General Salary Growth (GSG) 

As  for  the  discount  rate,  Annex  XII  contains  specific  rules  for  calculating  General 
Salary  Growth.  Article  11  stipulates  on  the  one  hand  that  the  annual  change  in  salary 
scales to be used for the actuarial calculations must be based on the specific indicator 
(SI) and on the other hand that the effective annual rate is the average of the net SIs for 
the 12 years preceding the current year.  

In 2009 the European Commission proposed an adjustment of salaries and pensions of 
3.7% with effect from 1 July 2009. The Council adopted with effect from 1 July 2009 
an  increase  of  remunerations  and  pensions  of  only  1.85%,  which,  combined  with  the 
Brussels International Index (BII) inflation rate of 0.9%, led to a calculated SI of 0.94%, 
(1.009 x 1.0094 = 1.0185).  

As the net SI applied in 2009 is 0.94% (0.9% to one decimal place), the 12-year moving 
geometric average from 1998 to 2009 (GSG) is 0.3% (the same as this used in the 2009 
assessment). 

Table XIV.  General Salary Growth  

Year

1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
GSG (Aver. 1997 - 2008)
GSG (Aver. 1998 - 2009)

SI

0.7
0.5
1.8
-0.1
0.6
1.7
1.1
-1.2
0.0
0.2
0.0
-1.3
0.9
0.3
0.3

4.3. 

Individual Salary Progression (ISP) 

4.3.1.  Population groups 

The  Individual  Salary  Progression  (ISP)  refers to  the  salary  increase  due  to  the  career 
advancement of EU officials, i.e. promotions and seniority steps.  

The  ISP  has  a  significant  impact  on  the  contribution  rate,  though  less  than  that  of  the 
RDR and GSG.  

With the introduction of the new Staff Regulations on 1.5.2004, the career progression 
of  EU  officials  has  been  completely  reviewed.  Annex  XIII  of  these  Staff  Regulations 
includes  transitional  measures  which  made  the  determination  of  this  assumption  quite 
complicated.  

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22 

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This  time,  the  active  population  has  been  divided  into  the  following  5  homogeneous 
groups: 

(1) 

(2) 

Officials recruited before 01.05.2004 

Officials recruited from 01.05.2004 onwards 

(3) 

Temporary Agents 

(4) 

Contract Agents 

(5) 

Parliamentary Assistants 

The groups above are slightly different from those used in the 2009 assessment. 

The weight of each of these new groups in the total population is shown in Table XV 
below. 

Table XV. Weight of the active population by ISP group at 31.12.2009 

ISP Group

Weight

1 Officials recruited before 01.05.2004

2 Officials recruited from 01.05.2004 onwards

3

4

5

Temporary Agent

Contract Agent

Parliamentary Assistant

Total

49%

17%

15%

17%

3%

100%

4.3.2.  Turnover 

The ISP of the population groups above is influenced by their turnover rates (affecting 
career  progression  and  seniority  increases:  salary  increases  are  thus  small  for  staff 
having fixed contracts.  

All  cctive  members  of  the  PSEO  (Officials,  Temporary  Agents,  Contract  Agents  and 
Parliamentary  Assistants)  will  definitely  stop  activity  one  day  for  several  reasons  and 
eventually leave the pension scheme. 

To facilitate computation, turnover has been divided into two types: 

•  Turnover due to end of contract validity. 

•  Turnover  due  to  voluntary  and  unexpected  departures.  (This  concerns  resignation 

before the end of a contract, dismissal for incompetence, etc.) 

Departures  due  to  other  unexpected  reasons  (invalidity  and  death)  and  voluntary 
decisions (mainly secondment, retirement, non active status according to Article 41 of 
SR, leave on personal grounds, leave for military service, parental or family leave) are 

EN 

23 

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excluded  from  the  definition  of  turnover  as  these  causes  of  leaving  are  already 
computed in another way. 

ISP rates to be applied to officials (ISP groups 1 and 2 above) have been updated to take 
account of the observed promotion rates from 2005 to 2009 (the methodology agreed at 
the June 2006 Art83 WG meeting). Turnover has been considered when calculating ISP 
rates for groups 3 to 4.  

4.3.3. 

ISP rates 

The following table shows weighted ISP rates by groups of active population:  

Table XVI. Weighted ISP rates by group of active population 

ISP groups

Average ISP 
rate by group

Officials recruited before 01.05.2004

1.5%

Officials recruited from 01.05.2004 onwards

2.1%

Temporary agents

Contract agents

PA. Fixed contract. Art 130

1.6%

1.0%

0.0%

1

2

3

4

5

ISP rates in the table above are the average of ISP rates weighted by the population in 
each  group.  These  average  rates  are  calculated  for  publication  purposes  only,  the 
detailed rates by grade and years to retire being used in computation. 

The ISP rates used in this assessment cannot directly be compared to those used in the 
2009  assessment  as  the  methodology  to  compute  turnover  and  ISP  rates  has  changed. 
The updated methodology was presented at the June 2010 meeting of Article 83 WG. 

The implementation of the improved methodology concerning turnover and the use of 
the new ISP rates slightly decreases the service cost and thus the pension contribution 
rate to finance it. The combined impact is around -0.2 percentage points in the pension 
contribution rate. 

4.4. 

Loading factor for orphan’s and divorced spouse’s pension  

Current actuarial practice is to add 10% to a payable reversion pension to allow for the 
pension payable to orphans after the death of the surviving spouse (or of the official if 
there  is  no  surviving  spouse)  and  any  pension  payable  to  divorced  spouses.  Eurostat 
estimates that  the impact of this factor  on the  contribution  rate  is  minor  and the same 
assumption has been used in the 2010 actuarial assessment.  

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24 

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5. 

ANNUITIES 

Articles 6 to 8 of Annex XII to the Staff Regulations refer to the annuities used in the 
calculation. The values of these annuities according to age are presented below. 

In  order  to  comply  with  Commission  policy  on  equal  opportunities,  values  are  not 
presented  by  sex.  However,  Eurostat  conducted  its  analyses  taking  into  account  all 
relevant  features  of  the  population,  including  sex.  The  figures  are  aggregated  by 
weighted averages only for presentation in this report. 

The table below was calculated using: 

–  the Real Discount Rate (RDR) from Table XIII, 

–  the General Salary Growth (GSG) from Table XIV, 

–  an assumed retirement age (r) equal to 64 years of age for officials younger than 35 

on the reference date (31.12.2003) and equal to 63 years of age for the others, 

where: 

x is the age of the official, 

y is the age of the official’s spouse, 

m = r – x (number of years between the official’s age and the assumed retirement age), 

y = x ± 3 according to the sex of the official. 

Table XVII.  Some annuities in accordance with Articles 6 to 8 of Annex XII to the Staff 
Regulations 

Immediate deferred 

Immediate temporary 

annuity at 
age x
m|ax
4.899242
5.308594
6.137150
7.445991
8.522135
9.820874
11.291756
13.034030
15.190133
16.631260

reversionary annuity at 
ages x and y
m|axy
0.718630
1.160548
1.253527
1.595564
1.918554
2.180285
2.575876
3.009815
3.346189
3.722760

annuity at 
age x
ax
26.260384
24.779962
22.741496
19.961651
17.297921
14.306024
10.942157
7.154873
2.865001
0.000000

reversionary annuity at 
ages x and y
axy
0.254617
0.278019
0.278850
0.261250
0.255103
0.227747
0.177811
0.104261
0.026529
0.000000

Age

y

21
25
30
35
40
45
50
55
60
63

Immediate
 annuity at age 
y
ay
31.833127
30.746411
29.536636
28.059108
26.427902
24.670967
22.682307
20.505024
18.192256
16.631260

Age

x

21
25
30
35
40
45
50
55
60
63

 is described in article 6 § 3a

  m|ax
  m|axy
 is described in article 6 § 3b
      ax
 is described in article 7 § 2a
      axy  is described in article 7 § 2b
      ay
 is described in article 8 § 2

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APPENDIX II – INDEPENDENT EXAMINATION 

An  independent  expert  conducted  an  actuarial  examination  of  the  contribution  rate 
calculated  by  Eurostat.  This  examination  consisted  in  confirming  the  relevance  and 
reliability  of  the  actuarial  processes  and  assumptions  used  in  accordance  with  the 
methodology  described  in  Annex  XII  to  the  Staff  Regulations.  For  the  elements  not 
described  explicitly  in  this  Annex,  the  independent  expert  checked  their  compliance 
with  generally  accepted  actuarial  practices.  Regarding  the  actuarial  assumptions,  the 
independent expert carried out investigations to ensure that the underlying data provided 
by Eurostat were used correctly. 

The independent expert report concluded that: 

"…  as  an  independent  expert,  has  conducted  an  actuarial  examination  of  the  2010 
update of the actuarial assessment of the pension scheme referred to in Article 83a (3) 
of  the  new  Staff  Regulations  for  which  Eurostat  endorsed  the  technical  responsibility 
towards  the  Commission  according  to  the  Annex  XII  “Rules  for  implementing  Article 
83a  of  the Staff  Regulations”.  This  examination consisted in confirming the relevance 
and the reliability of the actuarial processes and assumptions used in accordance with 
the methodology described in Annex XII to evaluate the contribution rate of officials. 

For the aspects explicitly mentioned in Annex XII, we did not detect any elements likely 
to  cast  doubt  that  the  calculations  determined  by  Eurostat  are  not  compliant  with  the 
rules of Annex XII. 

For the aspects not described explicitly in Annex XII, we have checked their compliance 
with  the  generally  accepted  actuarial  practices  and  we  did  not  detect  any  significant 
difference with the methodology and the assumptions we would have chosen ourselves 
to perform the calculations. 

…  has  no  reasons  to  doubt  that  the  official’s  contribution  rate  (11.0%)  calculated  by 
Eurostat is a sufficiently accurate estimate of the reality…". 

The complete independent expert report on the actuarial examination of the contribution 
rate is available from Eurostat. 

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