COMMISSION STAFF WORKING DOCUMENT Addendum to October 2010 Eurostat Report on  the annual adjustment of remuneration and pensions of EU officials in accordance with Articles 64 and 65 of the Staff Regulations and Annex XI thereto  Follow-up to the Court of Justice Judgment of 24 November 2010 in Case C-40/10 and the correction of the French salary data in the year to July 2009  Reference Period: July 2009 – July 2010  COM(2010)797 final
Date: 2010-12-13
Institutions: European Commission
Subjects: European official, pay, servant (EU), social-security benefit

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EUROPEAN COMMISSION 

Brussels, 13.12.2010 
SEC(2010) 1608 final 

COMMISSION STAFF WORKING DOCUMENT 

Addendum to October 2010 Eurostat Report on  
the annual adjustment of remuneration and pensions of EU officials in accordance with 
Articles 64 and 65 of the Staff Regulations and Annex XI thereto 

Follow-up to the Court of Justice Judgment of 24 November 2010 in Case C-40/10 and 
the correction of the French salary data in the year to July 2009 

Reference Period: 
July 2009 – July 2010 

COM(2010)797 final 

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1. 

CONTEXT 

The Court of Justice of the European Union in the 24 November 2010 judgment (Case 
C-40/10)  annulled  the  Council  Regulation  (EU,  Euratom)  No  1296/2009  of  23 
December 2009 adjusting the remuneration and pensions by 1.85%. In order to comply 
with the judgment, the Council is bound to adopt the Commission Proposal on the 2009 
salary and pension adjustment (COM (2009) 629) with effect from 1 July 2009. Thus, 
the remuneration and pensions of EU officials and other servants should be adjusted by 
3.7% 

In  June  2010  France,  due  to  an  error  in  the  former  calculation,  communicated  a 
corrected value of the Specific Indicator for the reference period 1 July 2008 – 1 July 
2009.  As,  in  order  to  comply  with  the  Court's  judgment,  this  correction  could  not  be 
taken  into  account  in  the  2009  annual  adjustment,  it  needs  to  be  accounted  for  in  the 
2010 annual adjustment. 

Therefore,  the  2010  adjustment  of  salaries  of  EU  officials  must  take  into  account  two 
specific elements:  

–  the judgment of the Court of Justice  

–  the correction of errors in the French basic data. 

Eurostat has drawn up the present Addendum to the Eurostat report of October 2010 to 
set  out  the  impact  of  the  inclusion  of  the  French  correction  in  the  2010  annual 
adjustment of the remuneration and pensions of EU officials and other servants. 

This  addendum  to  the  Eurostat  report  provides  the  information  needed  by  the 
Commission to formulate an amended proposal for a Council Regulation adjusting the 
remuneration  and  pensions  of  officials  and  other  servants  of  the  European  Union  and 
the correction coefficients applied thereto with effect from 1 July 2010. 

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

Eurostat, Unit C6 - Secretariat 
BECH – A2/018  
Bâtiment Jean Monnet 
L-2920 Luxembourg 
Tel.: (352) 4301-35287 
Email: estat-a64ia65@ec.europa.eu 

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2. 

APPLIED METHODOLOGY 

Following the adoption of the 3.7% annual adjustment for 2009 in accordance with the 
Court  ruling,  in  order  to  incorporate  the  impact  of  the  revision  of  the  French  data  for 
2009 in the 2010 exercise, the 2010 FR Specific Indicator - and consequently the 2010 
global Specific Indicator (SI) – needs to be adjusted. The adjusted global SI will be used 
for the calculation of the pension contribution rate in 2011. 

2.1. 

Adjustment factor deriving from the revision of the French 2009 basic data:  

Corrected 
nominal SI

Original 
nominal SI

Factor

101.8

/

103.2

=

0.986

2.2. 

Adjustment of the 2010 nominal SI for France:  

Original 
nominal SI

Factor

Adjusted 
nominal SI

101.7

x

0.986

=

100.3

2.3. 

Adjustment of the 2010 Global SI: 

Adjusted change in the net remuneration of central government civil servants
July 2009 - July 2010

Country

Weight ¹                 EU25=100 / 
EU8=100

Nominal net 
specific indicator

Consumer 
price indices

Real net specific 
indicator

Effect on the 
total

BE

DE

ES

FR (*)

IT

LU

NL

UK 

Total

(%)

2.5

18.9

9.6

13.9

12.3

0.3

4.3

14.4

76.2

(%)

3.3

24.8

12.6

18.2

16.1

0.4

5.6

18.9

100.0

(%)

0.9

-4.1

-1.3

0.3

0.6

1.9

0.7

1.9

-0.6

(%)

2.7

0.8

1.5

1.7

1.5

2.3

0.2

3.2

1.7

(%)

-1.8

-4.9

-2.8

-1.4

-0.9

-0.4

0.5

-1.3

-2.2

-0.1

-1.2

-0.3

-0.3

-0.1

0.0

0.0

-0.2

-2.2

¹ Basis: GDP expressed in PPP, 2009
* Adjusted values of the French specific indicator taking into account the effect of the error in French 2009 salary data

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3. 

SALARY ADJUSTMENT RESULTING FROM THE INCLUSION OF THE CORRECTION OF THE 
FRENCH BASIC DATA  

The French figures for national officials' salaries were revised in June 2010, within the 
6-month period foreseen in the manual for possible retroactive correction of salaries to 
take place. 

For  2010,  the  Commission's  proposed  salary  increase  (0.4%)  was  based  on  correct 
French  figures.  The  2010  underlying  figures  have  been  validated  and  accepted  as 
correct  by  the  Member  States  concerned.  Revision  of  the  measured  increase  for  the 
reference period 1 July 2009 – 1 July 2010 from 0.4% to 0.1% would entail imputing 
correct and previously validated basic data. 

Therefore,  as  explained  above,  the  French  Specific  Indicator  and  the  global  Specific 
Indicator  (SI)  need  to  be  adjusted  in  order  to  account  for  the  impact  of  the  French 
revision on the 2010 salary adjustment exercise. 

The  amount  of  the  annual  adjustment  is  obtained  by  multiplying  the  adjusted  Global 
Specific Indicator (SI) of -2.2% and the change in the Brussels International Index (BII) 
of 2.4%. These expressed in index form are 97.8 and 102.4 respectively. 

Salary change

102.4

x
⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯
100

97.8

⎯

100

=

0.1%

This  corresponds  to  adjusting  the  2010  net  salary  increase  at  an  aggregate  level  by  a 
factor which provides an ex-post correction to the 2009 adjustment for the FR effect of 
0.997. 

100.4

x

0.997

=

100.1

or

0.1%

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