COMMISSION STAFF WORKING PAPER Eurostat report on the 2011 update of the 2010 actuarial assessment of the_Pension Scheme for European Officials (PSEO)
Date: 2011-11-24
Institutions: European Commission
Subjects: European official, servant (EU), social-security benefit, social-security contribution

EUROPEAN COMMISSION 

Brussels, 24.11.2011 
SEC(2011) 1438 final 

COMMISSION STAFF WORKING PAPER 

Eurostat report on the 2011 update of the 2010 actuarial assessment of the_Pension 
Scheme for European Officials (PSEO) 

Accompanying the document 

Proposal for a Council Regulation adjusting, from 1 July 2011, the rate of contribution 
to the pension scheme of officials and other servants of the European Union 

{COM(2011) 825 final} 

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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).......................................................................................... 5 
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 ....................................................... 6 
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..................................................................................................... 7 
5. 
Variables used in the assessment ................................................................................. 7 
5.1. 
Demographic parameters ............................................................................................. 8 
5.2. 
Economic parameters ................................................................................................... 8 
5.3. 
Technical implementation of Annex XII to the Staff Regulations .............................. 9 
5.4. 
Independent examination ............................................................................................. 9 
5.5. 
Relevant figures for calculating the contribution rate................................................ 10 
6. 
Summary of main variables ....................................................................................... 11 
7. 
Demographic parameters ........................................................................................... 13 
8. 
Reference population ................................................................................................. 13 
8.1. 
Assumed retirement age............................................................................................. 16 
8.2. 
Invalidity table ........................................................................................................... 17 
8.3. 
Life table of healthy persons ...................................................................................... 18 
8.4. 
Life table of invalids .................................................................................................. 18 
8.5. 
Average age difference between men and women..................................................... 19 
8.6. 
Probability of being married for men and women ..................................................... 19 
8.7. 
Economic parameters ................................................................................................. 19 
9. 
Real Discount Rate (RDR)......................................................................................... 19 
9.1. 
General Salary Growth (GSG) ................................................................................... 20 
9.2. 
9.3. 
Individual Salary Progression (ISP)........................................................................... 21 
9.3.1.  Population groups ...................................................................................................... 21 
ISP rates ..................................................................................................................... 22 
9.3.2. 
9.4. 
Turnover..................................................................................................................... 22 
9.4.1.  Turnover definition .................................................................................................... 22 
9.4.2.  T1. Turnover due to contract validity expiration ....................................................... 22 
9.4.3.  T2. Turnover due to voluntary and unexpected losses............................................... 23 
Loading factor for orphan’s and divorced spouse’s pension ..................................... 24 
9.5. 
Annuities .................................................................................................................... 24 
10. 
Impact of changes in demographic and economic parameters in the calculation of the 
11. 
pension contribution rate............................................................................................ 25 

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1. 

INTRODUCTION 

Article  83a  and  Annex  XII  of  the  Staff  Regulations  set  out  rules  to  guarantee  the 
actuarial balance 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:  

(1) Eurostat  is  the  authority  responsible  for  the  technical  implementation  of  the 

Annex (see Article 13(1)),  

(2) Eurostat  is  to  be  assisted  by  one  or  more  qualified  independent  experts  in 

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

(3) 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)),  

(4) any  questions  of  methodology  for  the  implementation  of  the  Annex  are  to  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  2011  update  of  this  2008  actuarial  assessment,  based  on  the  population  of 
European officials as at 31 December 2010.  

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:  

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

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2.  CONTRIBUTION RATE 

The 2011 actuarial assessment of the Pension Scheme for European Officials (PSEO) 
indicates that, in order to guarantee the balance 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 27 June 2011 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  206  million  Euros)  and  the  total  of  annual 
basic  salaries  (3  638  million  Euros)  (see  Appendix  I,  Tables  I  and  II).  This  rate  is 
lower  (-0.6%)  than  the  one  calculated  in  2010  (11.6%).  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 Regulations1.  

The following elements have been considered in the 2011 assessment:  

(5) the population of contributing members at 31.12.2010, 

(6) the update of the General Salary Growth Rate (GSG) (0,5% in 2010 and 0,3% in 

2011 (see pages 4 and 9 of doc 20110627 Art.83_06), 

(7) the update of the Individual Salary Progression rates (ISP) and 

(8) the update of the Invalidity Table. 

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 and in actuarial assumptions. 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.  

1  The methodology is further explained in a separate document available at Eurostat 

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As  indicated  in  point  2,  the  official’s  pension  contribution  rate  calculated  this  year 
(11.0%)  is  lower  than  the  one  calculated  in  2010  (11.6%).  This  decrease  (-0.6 
percentage  points)  is  mainly  explained  by  the  combined  effect  of  the  population 
evolution  and  actuarial  assumptions  update,  the  most  important  of  which  being  the 
decrease of the GSG from 0.5% in 2010  to 0.3% in 2011. The Real Discount  Rate 
(RDR) remained the same as in the 2010 assessment (2.8%).  

Changes  in  actuarial  assumptions  and  their  impact  on  the  contribution  rate  were 
presented in detail at the 27 June 2011 meeting of the Article 83 Working Group (see 
document 20110627 Art83_06). Further details are given in Appendix I. 

4.1. 

Real Discount Rate (RDR) 

The  RDR  (2.8%)  used  in  2011  calculation  is  the  same  as  in  the  2010  assessment. 
Consequently no effect is observed this year on the pension contribution rate.  

4.2.  General Salary Growth (GSG) 

The GSG (0.3%) used in the 2011 calculation is lower than the one used for the 2010 
assessment  (0.5%).  Consequently  a  lowering  effect  was  observed  this  year  on  the 
pension contribution rate (-0.61 percent points).  

4.3.  Individual Salary Progression (ISP) 

ISP  rates  have  been  updated  to  take  account  of  the  observed  promotion  rates  from 
2005  to  2010  in  accordance  with  methodology  agreed  at  the  June  2006  Art83  WG 
meeting. This update is further explained in Appendix I. 

The  ISP  update  has  no  significant  impact  (-0.01  percent  points)  on  the  pension 
contribution rate. 

4.4.  Invalidity table 

The table of probabilities of becoming an invalid was updated, with the most recently 
observed invalidity rates (2010). The new invalidity table (2010 EU Invalidity table) 
is thus an average of 5 years invalidity rates (2006 – 2010). The use of this updated 
table  has  had  an  impact  of  around  -0.05  percentage  points  on  the  pension 
contribution  rate.  This  impact  is  explained  by  the  fact  that  the  probability  of 
becoming  invalid  by  age  slightly  decreased  (see  further  explanation  in  appendix  I, 
point 8.3).  

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  assessment2.  The  current  ICSLT  (International 
civil  servants  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.  

2 

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

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The life table used in the 2011 calculation is thus identical to that used in the 2010 
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 has 
applied this actuarial practice since the 2008 pension assessment.  

Since  the  life  table  used  in  the  2011  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 category 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  be 
supported  by  observation.  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.  

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 27 June 
2011 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.  

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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 

No  methodological  changes  have  been  implemented  in  the  occasion  of  the  2011 
pension assessment, thus no impact on the pension contribution rate is observed. 

4.12.  Population change effect 

The yearly population change has had a very low impact (+0.07 percent points) on 
the pension contribution rate calculated this year. A more reliable observation of the 
effect of change in population on the pension contribution rate can only be made on a 
cumulated basis over a longer period of time.  

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.  They  were  discussed  with  national  experts  from  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.  

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5.2.  Demographic parameters 

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

(9) active officials,  

(10)  members whose pension contribution is optional (e.g. officials who have taken 

leave on personal grounds or parental leave),  

(11)  invalids  who  receive  an  invalidity  allowance  under  Article  78  of  the  Staff 

Regulations,  

(12)  Beneficiaries of an allowance for termination of service.  

54  885  contributing  members  were  recorded  at  31.12.2010,  which  represents  a  net 
increase  of  662  participants  compared  to  the  previous  year  (at  31.12.2009,  54  223 
were used in the 2010 actuarial assessment).  

This  increase  in  the  population  is  explained  by  the  recruitment  of  temporary  staff, 
contract staff, and parliamentary assistants, whereas in the same period (31.12.2009 
to 31.12.2010) the number of officials and non-active staff3 slightly decreased.  

The contributing members at 31.12.2010 are:  

(13)  34 739 officials, 

(14)  8 572 temporary agents, 

(15)  9 366 contract staff, 

(16)  1549 parliamentary assistants, 

(17)  659 non-active staff. 

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.  

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 2011 update as the average of the corresponding rates for the 12 preceding years 
(for  more  information  see  Appendix I  to  this  report,  points  9.1  and  9.2  and  Tables 
XIII and XIV).  

3   Non  active  status:  (Article  41):  retirement  in  the  interests  of  the  service  (art..  50),  termination  of  service 

under special measures ("dégagement"), invalids who receive an invalidity allowance (art. 78)   

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The value of the RDR is 2.8% (the same value as that used in the 2010 assessment) 
and  that  of  the  GSG  is  0.3%  (0.5%  was  the  value  used  in  the  2010  assessment). 
Finally, an updated ISP table has been used (see Appendix I, point 9.3).  

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.  

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.  

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

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APPENDIX I - COMPUTATION 

6.  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

30.4%

Service cost for invalidity

Service cost for death

Total service cost

1.7%

1.1%

33.1%

10.1%

0.6%

0.4%

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

1 106

 61

 39

1 206

3 638

91.7%

5.1%

3.2%

100.0%

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7.  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)

31.12.2010

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)

2010 ISP Table

2008 ICSLT

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

Invalidity table

2010 EU Invalidity Table

Many of these actuarial assumptions are explained in the following points. Some of 
them have changed compared to the 2010 actuarial assessment. The following table 
summarises these changes:  

Table V. 

Changes in actuarial assumptions 

Assumption

Assessment

31.12.2009

31.12.2010

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)

2,8%

0,5%

1,5%

2,1%

1,6%

1,0%

0,0%

2,8%

0,3%

1,5%

2,1%

1,6%

1,0%

0,0%

Life

Invalidity

2008 ICSLT

2008 ICSLT

2009 EU Invalidity 
table

2010 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) Single estimated rate
(4) No individual salary progression is envisaged

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8.  DEMOGRAPHIC PARAMETERS 

8.1. 

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  2010  of  the  51  institutions  and  agencies  (49  were  recorded  at  31 
December 2009) whose officials are members of the PSEO.  

Table VI. 

Institutions and Agencies in the PSEO 

Abbr.

Institutions or assimilated organisations

Abbr.

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

COJED

COURT OF JUSTICE OF EUROPEAN COMMUNITIES

EIOBA

EUROPEAN INSTITUTE OF INNOVATION AND 
TECHNOLOGY
EUROPEAN INSURANCE AND OCCUPATIONAL 
PENSION AUTHORITY

ECONOMIC AND SOCIAL COMMITTEE

EMSA

EUROPEAN MARITIME SAFETY AGENCY

CSC

CEC

EUROPEAN COMMISSION

EDPS

EUROPEAN DATA PROTECTION SUPERVISOR

EO

EUROPEAN OMBUDSMAN

EMCDDA

EFRA

ENISA

EUROPEAN MONITORING CENTRE FOR DRUGS AND 
DRUG-ADDICTION
EUROPEAN MONITORING CENTRE FOR RACISM AND 
XENOPHOBIA
EUROPEAN NETWORK AND INFORMATION SECURITY 
AGENCY

EUROPARL

EUROPEAN PARLIAMENT

CEPOL

EUROPEAN POLICE COLLEGE

Abbr.

ACER

FRONTEX

Agencies

EUROPOL

EUROPEAN POLICE OFFICE

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

ERA

ERC

EUROPEAN RAILWAYS AGENCY

EUROPEAN RESEARCH COUNCIL EXECUTIVE AGENCY

ARTEMIS

ARTEMIS JOINT UNDERTAKING

ESMA

EUROPEAN SECURITIES AND MARKET AUTHORITY

SKY

CLEAN SKY JOINT UNDERTAKING

ETF

EUROPEAN TRAINING FOUNDATION

CFCA

COMMUNITY FISHERIES CONTROL AGENCY

CPVO

COMMUNITY PLANT VARIETIES OFFICE

EACEA

EDUCATION, AUDIOVISUAL AND CULTURE EXECUTIVE 
AGENCY

ENIAC

ENIAC JOINT UNDERTAKING

EURATOM SUPLY AGENCY

EACI

EAA

FCH

IMI

JET

EXECUTIVE AGENCY FOR CONPETITIVENESS AND 
INNOVATION
EXECUTIVE AGENCY FOR THE PUBLIC HEALTH 
PROGRAM

FUEL CELLS AND HYDROGEN JOINT UNDERTAKING

INNOVATIVE MEDICAMENTS INITIATIVE JOINT 
UNDERTAKING

JOINT EUROPEAN TORUS (J.E.T.)

ESA

EAR

OSHA

EMEA

EUROPEAN AGENCY FOR RECONSTRUCTION

EUROJUST

JUDICIAL COOPERATION

EUROPEAN AGENCY FOR SAFETY AND HEALTH AT 
WORK
EUROPEAN AGENCY FOR THE EVALUATION OF 
MEDICAL PRODUCTS

EASO

EUROPEAN ASYLUM SUPPORT OFFICE

EASA

EUROPEAN AVIATION SAFETY AGENCY

OHIM

REA

SSR

BEREC

OFFICE FOR HARMONISATION IN THE INTERNAL 
MARKET

RESEARCH EXECUTIVE AGENCY

SESAR JOINT UNDERTAKING

THE BODY OF EUROPEAN REGULATORS FOR 
ELECTRONIC COMMUNICATIONS

EBA

EUROPEAN BANKING AUTHORITY

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

ITER

TNT-T

CDT

THE EUROPEAN GNSS SUPERVISORY AUTORITY

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 

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13 

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

Personnel  data  were  collected  from  the  NAP4  (New  Application  for  Pay),  from 
Sysper25 and directly from institutions and agencies, and imported into the Eurostat 
database.  The  data  were  checked  to  ensure  a  high  level  of  quality.  The  actuarial 
assessment is based on the output from the Eurostat database at the reference date.  

Table VII. 

Reference population by administrative status 

Contributing members

31.12.2009

31.12.2010

Total

Weight

Total

Weight

Change

Active staff

- Officials

35 206

64,9%

34 739

63,3%

-1,3%

- Temporary staff

8 001

14,8%

8 572

15,6%

- Contract staff

8 966

16,5%

9 366

17,1%

7,1%

4,5%

- Parliamentary Assistant

1 381

2,5%

1 549

2,8%

12,2%

Non-active staff (1)

 669

1,2%

 659

1,2%

-1,5%

Total population

54 223

100,0%

54 885

100,0%

1,2%

(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 (Article 78).

This increase in the population is mainly explained by the recruitment of temporary 
staff, contract staff and the increase of parliamentary assistants.  

4  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. 

5  Sysper2  is  the  IT  system  to  manage  personal  data  of  the  Commission  staff.  It  is  also  used  by  PMO  (Pay 
Master Office) to manage pensions and transfers of pension rights of the staff of EU institutions and agencies 

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Table VIII. 

Reference population by institution or agency 

Institution or Agency

31.12.2009

31.12.2010

Total

%

Total

%

European Commission

31 809  

59%

31 703  

58%

European Parliament

7 943  

15%

7 871  

14%

Council of the European Union

3 533  

Court of Justice of the European Communities

2 162  

Court of Auditors

Economic and Social Committee

Committee of the Regions

 979  

 808  

 593  

7%

4%

2%

1%

1%

3 207  

2 184  

1 002  

 807  

 601  

6%

4%

2%

1%

1%

Other institutions and decentralised Community 
agencies 

6 396  

12%

7 510  

14%

Total

54 223  

100%

54 885  

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:      24298

Women: 30587

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

Num ber of people

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8.2.  Assumed retirement age 

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.  

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)..

Please note that pension incentives (called Barcelona incentive since 2004) are based 
on  acquired  pension  rights  in  groups  1  and  2  above  (Old  Staff  Regulations),  while 
they are based on the last basic salary for groups 3 to 5 (New Staff Regulations). 

The assumed retirement ages detailed in the two right columns in the table XVI were 
estimated on the occasion of the 2004 pension assessment and were presented at the 
June 2004 meeting of the Article 83 Working Group. These assumed retirement ages 
have been used in pension assessments since 2004. 

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8.3.  Invalidity table  

A first invalidity table (2004-EU Invalidity table) was used in the 2004 assessment. 
According  to  decision  taken  at  the  Art83  Working  Group  at  its  26th  June  2007 
meeting,  this  table  must  be  updated  each  year  to  take  account  of  the  evolution  of 
beneficiaries of an invalidity allowance (the new category of population according to 
the  new  Staff  Regulation  in  force  from  the  1st  May  2004).  A  moving  average  of  5 
years of invalidity observation is used. 

The  number  of  invalids  recorded  in  2004  (103)  has  been  replaced  by  the  number 
recorded  in  2010  (105)  in  the  moving  5  years  average  of  invalidity  observations. 
Thus the total of invalids in this 5-year period decreased from 510 to 483 invalids. 

The following table shows the number of invalids from 2006 to 2010.  

Table X. Invalids by year 

Year

2006

2007

2008

2009

2010

Total

Invalides

108

88

89

93

105

483

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  2006  to  2010  invalidity  observations  have  been  used  to  update  the  invalidity 
table  by  sex  (EU-2011  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. EU-2010 Invalidity Table (Extract) 

Age

x

20
25
30
35
40
45
50
55
60
65

Invalidity probabilities of 
becoming invalid at age x

q'x

0.000045
0.000064
0.000126
0.000412
0.001117
0.002084
0.003550
0.005533
0.004192
0.002319

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8.4.  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 2011 pension assessment.  

The following table is an extract from this table:  

Table XII. 

2008 ICSLT 

Men

Women

Age

x, y

40

45

50

55

60

65

70

75

80

85

90

Dying 
probability
qx
0.00063370

0.00106107

0.00176523

0.00282667

0.00481751

0.00838934

0.01458993

0.02531453

0.04374552

0.07506895

0.12727809

Life 
expectancy
ex
44

39

35

30

25

21

17

13

10

8

5

Dying 
probability
qy
0.00054775

0.00092086

0.00152344

0.00242203

0.00372321

0.00605132

0.01074871

0.01863843

0.03307728

0.05836406

0.10193574

Life 
expectancy
ey
46

42

37

32

28

23

19

15

12

9

6

8.5.  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  has  applied  this  actuarial  practice  since  the  2008  pension 
assessment.  

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.  

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8.6.  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  this  actuarial 
assumption. 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.  

8.7.  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) and 0.38 for 
women (0.4 to one decimal place). 

These  updated  probabilities  have  been  used  in  yearly  pension  assessments  since 
2008.  

9.  ECONOMIC PARAMETERS 

9.1. 

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 1999 until 2010 have to be used in the 
2011 assessment of the PSEO.  

Nominal  discount  rate  (NDR):  5.0%.  This  is  the  average  of  1999  to  2010  nominal 
rates of euro area zero-coupon (government bonds) yield with a maturity of 21 years, 
21 years being the duration of the  scheme and the rate in 2010  as produced by  the 
ECB being 5.0%.  

Inflation  rate  (IR):  2.2%.  This  is  the  average  of  1999  to  2010  of  an  appropriate 
consumer price index; the EU HICP in 2010 being 2.1%. 

Real discount rate (RDR): 2.8% (it was the same in the assessment at 31.12.2009). It 
is  the  average  of  1999  to  2010  real  discount  rates;  the  latest  being  calculated  as 
"100*(100+NDR)/(100+IR)-100)".  This  RDR  (2.8%)  will  be  used  in  the  final 
assessment of the PSEO to be published by 1 September 2011. 

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19 

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Table XIII. Real Discount Rate (RDR)  

Year

1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Aver. 1998 - 2009
Aver. 1999 - 2010

Nominal rate 
(NDR)
(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
5.0
5.0
5.0

Inflationrate  (IR) Real discount rate (RDR)

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

(3)
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
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

9.2.  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.  

As the net SI applied in 2010 is -2.2%, the 12-year moving geometric average from 
1999 to 2010 (GSG) is 0.3% (a value of 0.5% was used in the 2010 assessment).  

Table XIV.  General Salary Growth  

Year
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
GSG (Aver. 1998 - 2009)
GSG (Aver. 1999 - 2010)

SI
0.5
1.8
-0.1
0.6
1.7
1.1
-1.2
0.0
0.2
0.0
-1.3
2.8
-2.2
0.5
0.3

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The decrease of the GSG (0.3% used in this assessment instead of 0.5% used in the 
assessment  at  31.12.2009)  makes  the  contribution  rate  decrease  by  0.61  percentage 
points if other assumptions remained stable. 

9.3.  Individual Salary Progression (ISP) 

9.3.1.  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.  

The  active  population  is  divided  into  homogeneous  groups  according  to  their 
characteristics: 

(1) Officials recruited before 01.05.2004, 

(2) Officials recruited from 01.05.2004 onwards, 

(3) Temporary staff, 

(4) Contract staff, 

(5) Parliamentary assistants. 

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 31.12.2010 

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

47%

17%

16%

17%

3%

Total

100,0%

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9.3.2. 

ISP rates 

The following table shows ISP rates used in the 2010 and 2011 assessments:  

Table XVI. Average ISP rates by group of population 

ISP groups

Officials recruited before 01.05.2004

Officials recruited from 01.05.2004 onwards

Temporary agents

Contract agents

PA. Fixed contract. Art 130

1

2

3

4

5

Average ISP rate by group
31.12.2010

Change

31.12.2009

1.5%

2.1%

1.6%

1.0%

0.0%

1.5%

2.1%

1.6%

1.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

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.  

ISP of officials changed slightly in comparison with these used in the assessment at 
31.12.2009.  This  change  has  no  significant  impact  (-0.01  percent  points)  on  the 
pension contribution rate. 

9.4.  Turnover 

9.4.1.  Turnover definition 

Active  members  of  the  PSEO  (officials,  temporary  staff,  contract  staff  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 in two types: 

(cid:131)  Turnover due to end of contract validity (T1), 

(cid:131)  Turnover  due  to  voluntary  and  unexpected  losses  (T2).  This  mainly  concerns 
resignation  before  the  end  of  a  contract,  dismissal  for  incompetence  and 
disappearance. 

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

9.4.2.  T1. Turnover due to contract validity expiration  

Two assumptions have been used: 

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(cid:131)  The ratio of indefinite contracts to fixed-length contracts. 

(cid:131)  Average duration of contracts in years. 

The  following  table  shows  the  rates  of  both  assumptions  above  by  contract  type, 
these rates being based on observations:  

Table XVII. T1 rates by contract types 

Contract Type

Weight of 
indefinite 
contracts (1)

Contract 
duration in 
years
(average)

AI1

FP. Contract with indefinite duration

BF1

TA. Fixed term contract. Art 8 and Art 2 (a)

BF2

TA. Fixed term contract. Art 8 and Art 2 (b)

BF3

TA. Fixed term contract. Art 8 and Art 2 (d)

BI1

BI2

TA. Contract with indefinite duration. Art 8 and Art 2 (a)

0.26

TA. Contract with indefinite duration. Art 8 and Art 2 (c)

DF1 CA. Fixed term contract. Art 85 and Art 3a

DF2 CA. Fixed term contract. Art 88 and Art 3b

DI1

CA. Contract with indefinite duration. Art 85 and Art 3a

0.05

EF1 PA. Fixed term contract. Art 130

(2)

5.1

4.4

5.2

(2)

(2)

7.4

2.4

(2)

4.1

(1)

(2)

Weight of fixed contracts becomes indefinite at the end of their period:  Indefinite contract / (Fixed + Indefinite 
contracts)

Data not relevant for contracts with indefinite duration

9.4.3.  T2. Turnover due to voluntary and unexpected losses  

The  number  of  active  staff  who  left  institutions  due  to  resignation,  dismissal  for 
incompetence  and  disappearance  in  the  year  N  has  been  compared  to  the  active 
population in the year N-1 to obtain the yearly T2 by contract type.  The rate to be 
used in the actuarial calculation has been computed as the average of the losses in the 
last four years (2006 to 2010) compared to active staff in 2005 to 2009. 

Table XVIII. T2 rates by contract types 

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Contract Type

AI1

FP. Contract with indefinite duration

BF1 TA. Fixed term contract. Art 8 and Art 2 (a)

BF2 TA. Fixed term contract. Art 8 and Art 2 (b)

BF3 TA. Fixed term contract. Art 8 and Art 2 (d)

BI1

BI2

TA. Contract with indefinite duration. Art 8 and Art 2 (a)

TA. Contract with indefinite duration. Art 8 and Art 2 (c)

DF1 CA. Fixed term contract. Art 85 and Art 3a

DF2 CA. Fixed term contract. Art 88 and Art 3b

DI1

CA. Contract with indefinite duration. Art 85 and Art 3a

EF1 PA. Fixed term contract. Art 130

T2

0.006

0.055

0.042

0.033

0.034

0.033

0.015

0.066

0.075

0.089  

The change of turnover rates T1 and T2 this year have no significant impact (-0.01 
percent points) on the pension contribution rate. 

9.5.  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 2011 actuarial assessment.  

10.  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.  
These  were  calculated  by  sex  and  then  aggregated  by  weighted  averages  only  for 
presentation in this report.  

The table below was calculated using:  

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

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

(8) 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,  

EN 

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Table XIX. 

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

reversionary annuity at 
ages x and y
m|axy

annuity at 
age x
ax

reversionary annuity at 
ages x and y
axy

4.89503

5.51491

6.30620

7.64007

8.76661

10.08812

11.60056

13.46470

15.65734

16.15370

1.04411

1.07130

1.29743

1.67565

1.96792

2.27359

2.69345

3.00879

3.45302

3.71119

25.89045

24.39757

22.30181

19.45318

16.72715

13.66388

10.22019

6.34086

1.93682

0.00000

0.27472

0.27219

0.28016

0.26173

0.25132

0.22032

0.16521

0.08731

0.01457

0.00000

Immediate
 annuity at age 
y
ay

31.44175

30.57735

29.26324

27.73685

26.09095

24.27903

22.24534

20.09087

17.68825

16.15370

Age

y

21

25

30

35

40

45

50

55

60

63

Age

x

21

25

30

35

40

45

50

55

60

63

x
y
m  = r – x

y  = x  ± 3

  m|ax
  m|axy
      ax
      axy
      ay

age of the official
age of the official’s partner
number of years between the official’s age and the assumed retirement age

partner's age according to the sex of the official.

is described in Annex XII of the Staff Regulations, Article 6 § 3a

is described in Annex XII of the Staff Regulations, Article 6 § 3b
is described in Annex XII of the Staff Regulations, Article 7 § 2a
is described in Annex XII of the Staff Regulations, Article 7 § 2b
is described in Annex XII of the Staff Regulations, Article 8 § 2

11.  IMPACT OF CHANGES IN DEMOGRAPHIC AND ECONOMIC PARAMETERS IN THE 

CALCULATION OF THE PENSION CONTRIBUTION RATE 

The yearly change in the calculated contribution rate is explained by the combined 
effect of changes in population, methodology, assumptions and other variables used. 
This  time  the  change:  -0.6  percent  points  (11.0%  is  obtained  in  the  present 
assessment instead of 11.6% in the assessment at 31.12.2009) is mainly explained by 
the decrease of the GSG. The following table summarise the impact of these changes. 

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Table XX.  Explanation of the change in calculated pension contribution rates at 
31.12.2009 and 31.12.2010 

Items

Remark

Pension 
contribution 
rate in %

Change breakdown

Assessment 2010

Assessment 2011

Global change

Change in assumptions

Assumptions 2009

Assumptions 2010

- GSG

- ISP

- Invalidity

- Turnover

Population 31.12.2009 and 
assumptions 2009
Population 31.12.2010 and 
assumptions 2010

Population 31.12.2010 and 
assumptions 2009
Population 31.12.2010 and 
assumptions 2010
Assumptions 2010, except 2009 
GSG
Assumptions 2010, except 2009 
ISP
Assumptions 2010, except 2009 
Invalidity table
Assumptions 2010, except 2010 
Turnover

- Other assumptions

Unchanged assumptions

Change in methodology

Methodology is unchanged

Change in population

Population as at 31.12.2010 
instead of this at 31.12.2009

11.6

11.0

-0.6

-0.6

11.7

11.0

11.7

11.1

11.1

11.0

11.0

-0.57

-0.64

0.00

0.07

-0.61

-0.01

-0.05

0.02

0.00

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APPENDIX II – INDEPENDENT EXAMINATION 

An  independent  expert  conducted  an  actuarial  examination  of  the  contribution  rate 
calculated  by  Eurostat.  This  examination  confirmed  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  tests  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  2011 
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 reason to doubt that the official’s contribution rate (11.0%) calculated by 
Eurostat is a sufficiently accurate estimate of the reality…". 

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

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