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
Date: 2011-11-24
Institutions: European Commission
Subjects: European official, pension scheme, servant (EU), social-security contribution

EUROPEAN COMMISSION 

Brussels, 24.11.2011 
COM(2011) 825 final 

2011/0388 (NLE) 

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 

{SEC(2011) 1438 final} 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Grounds for and objectives of the proposal 

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

General context 

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

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

Existing provisions in the area of the proposal 

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

2. 

211 

212 

229 

230 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

Consultation of interested parties 

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

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

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

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

Collection and use of expertise 

The  calculation  of  the  pension  contribution  rate  has  been  validated  by  an  actuarial 
expert (external consultant). 

Impact assessment 

The purpose of the proposal is to adjust the rate of contribution to the pension scheme 
of officials and other servants of the European Union in order to maintain the actuarial 
balance of the scheme. 

EN 

2 

   EN 

 
 
 
 
 
 
The legislation in force permits no alternative. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

Summary of the proposed action 

In accordance with Annex XII to the Staff Regulations, Eurostat has submitted a report 
on the actuarial assessment of the pension  scheme.  According  to  this  assessment,  the 
rate  of  contribution  required  to  maintain  actuarial  balance  of  the  pension  scheme  is 
11 % of basic salary. 

Under  Article  83a(4),  where  it  is  shown  that  there  is  a  gap  of  at  least  0.25  points 
between  the  rate  of  contribution  currently  applied  (11.6 %)  and  the  rate  required  to 
maintain actuarial balance (11.0 %), the Council is to consider whether the rate should 
be adapted, in accordance with the arrangements laid down in Annex XII. 

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

The  Commission  is  therefore  proposing  that  the  rate  of  contribution  be  adjusted  to 
11 % with effect from 1 July 2011. 

Legal basis 

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

Subsidiarity principle 

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

Proportionality principle 

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

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

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

Choice of instruments 

Proposed instrument: Regulation. 

Other instruments would be inappropriate for the following reasons: 

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

EN 

3 

   EN 

 
 
 
 
 
 
 
 
 
 
4. 

BUDGETARY IMPLICATION 

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

EN 

4 

   EN 

 
 
2011/0388 (NLE) 

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 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

Having regard to the Staff Regulations of Officials of the European Union and the Conditions 
of  Employment  of  Other  servants  of  the  European  Union  laid  down  by  Regulation  (EEC, 
Euratom, ECSC) No 259/681, and in particular Article 83a thereof and Annex XII thereto, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

In  accordance  with  Article  13  of  Annex  XII  to  the  Staff  Regulations,  Eurostat 
submitted  a  report  on  the  2011  actuarial  assessment  of  the  pension  scheme  updating 
the  parameters  referred  to  in  that  Annex.  According  to  this  assessment,  the  rate  of 
contribution required to maintain actuarial balance of the pension scheme is 11 % of 
basic salary. 

In  the  interests  of  actuarial  balance  of  the  pension  scheme  of  officials  and  other 
servants of the European Union, the rate of contribution should therefore be adjusted 
to 11 % of the basic salary, 

HAS ADOPTED THIS REGULATION: 

With effect from 1 July 2011, the rate of the contribution referred to in Article 83(2) of the 
Staff Regulations shall be 11 %. 

Article 1 

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

Article 2 

1 

OJ L 56, 4.3.1968, p. 1. 

EN 

5 

   EN 

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

Done at Brussels, 

For the Council 
The President 

EN 

6 

   EN 

 
 
 
LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 

1. 

NAME OF THE PROPOSAL: 

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 

2. 

BUDGET LINES: 

Chapter and Article: 

400 Tax on salaries of officials and other servants 

Amount budgeted for the year concerned (Budget 2011): 

EUR 591.7 million 

410 Staff contributions to the pension scheme 

Amount budgeted for the year concerned (Budget 2011): 

EUR 437.7 million 

3. 

FINANCIAL IMPACT  

(cid:133) 

(cid:58) 

Proposal has no financial implications 

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

(€ million to one decimal place)  

Budget line 

Revenue 

Six-month period 
starting 01/07/2011 

Article 400 

Impact on own resources 

Article 410 

Impact on own resources 

2.4 

-11.3 

2012 

4.7 

-22.6 

Situation following action 

Article 400 

Article 410 

2012 

4.7 

-22.6 

2013 

4.7 

-22.6 

2014 

4.7 

-22.6 

2015 

4.7 

-22.6 

2016 

4.7 

-22.6 

EN 

7 

   EN 

 
 
 
 
 
4. 

OTHER REMARKS 

Method of calculation: 

Pension contribution = new contribution – budgeted amount for current year 
New contribution = budgeted amount x new rate/rate in force 

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

EN 

8 

   EN