COMMISSION STAFF WORKING DOCUMENT Report on the 2012 update of the 2008 actuarial assessment of the Pension Scheme for European Officials (PSEO) Accompanying the document Proposal for a Council Regulation adjusting, from 1 July 2012, the rate of contribution to the pension scheme of officials and other servants of the European Union
Date: 2012-12-05
Institutions: European Commission
Subjects: EU statistics, European official, pension scheme, servant (EU), social-security contribution

EUROPEAN 
COMMISSION 

Brussels, 5.12.2012  
SWD(2012) 426 final 

COMMISSION STAFF WORKING DOCUMENT 

Report on the 2012 update of the 2008 actuarial assessment of the Pension Scheme for 
European Officials (PSEO) 

Accompanying the document 

Proposal for a Council Regulation 

adjusting, from 1 July 2012, the rate of contribution to the pension scheme of officials 
and other servants of the European Union 

{COM(2012) 755 final} 

EN 

   EN 

 
 
 
 
  
 
TABLE OF CONTENTS 

1. 
Introduction ........................................................................................................................ 5 
2.  Contribution rate ................................................................................................................ 6 
3.  Update of the assessment of the actuarial balance ............................................................. 6 
4.  Analysis of the contribution rate change............................................................................ 6 
4.1.  Real Discount Rate (RDR)......................................................................................... 7 
4.2.  General Salary Growth (GSG) ................................................................................... 7 
Individual Salary Progression (ISP)........................................................................... 7 
4.3. 
Invalidity table............................................................................................................ 7 
4.4. 
Life table (healthy persons)........................................................................................ 7 
4.5. 
Life table (invalid persons) ........................................................................................ 8 
4.6. 
4.7.  Assumed retirement age ............................................................................................. 8 
4.8.  Average difference between men and women ........................................................... 8 
4.9. 
Probability of being married for men and women ..................................................... 8 
4.10.  Loading factor for orphan’s and divorced spouse’s pension...................................... 8 
4.11.  Methodological changes............................................................................................. 9 
4.12.  Population change effect ............................................................................................ 9 
5.  Computation system........................................................................................................... 9 
5.1.  Variables used in the assessment ............................................................................... 9 
5.2.  Demographic parameters............................................................................................ 9 
Economic parameters ............................................................................................... 10 
5.3. 
Technical implementation of Annex XII to the Staff Regulations........................... 10 
5.4. 
Independent examination ......................................................................................... 10 
5.5. 
APPENDIX I - COMPUTATION ........................................................................................... 11 
6.  Relevant figures for calculating the contribution rate...................................................... 11 
7.  Summary of main variables.............................................................................................. 12 
8.  Demographic parameters.................................................................................................. 14 
8.1.  Reference population................................................................................................ 14 
8.2.  Assumed retirement age ........................................................................................... 16 
Invalidity table.......................................................................................................... 17 
8.3. 
Life table of healthy persons .................................................................................... 18 
8.4. 
8.5. 
Life table of invalids ................................................................................................ 18 
8.6.  Average age difference between men and women................................................... 19 
Probability of being married for men and women ................................................... 19 
8.7. 
9.  Economic parameters ....................................................................................................... 19 
9.1.  Real Discount Rate (RDR)....................................................................................... 19 
9.2.  General Salary Growth (GSG) ................................................................................. 20 
Individual Salary Progression (ISP)......................................................................... 21 
9.3. 
Population groups................................................................................................ 21 
ISP rates............................................................................................................... 21 
Turnover ................................................................................................................... 21 
Turnover definition ............................................................................................. 21 
T1. Turnover due to contract validity expiration ................................................ 22 
T2. Turnover due to voluntary and unexpected losses........................................ 22 
Loading factor for orphan’s and divorced spouse’s pension.................................... 23 
10.  Annuities .......................................................................................................................... 23 
11.  Impact of changes in demographic and economic parameters in the calculation of the 
pension contribution rate.......................................................................................................... 24 
APPENDIX II – INDEPENDENT EXAMINATION ............................................................. 25 

9.4.1 
9.4.2 
9.4.3 

9.3.1 
9.3.2 

9.5. 

9.4. 

3 

 
4 

 
 
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:  

(cid:131)  Eurostat  is  the  authority  responsible  for  the  technical  implementation  of  the 

Annex (see Article 13(1)),  

(cid:131)  Eurostat will be assisted by one or more qualified independent experts in carrying 

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

(cid:131)  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)),  

(cid:131)  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  2012  update  of  this  2008  actuarial  assessment,  based  on  the  population  of 
European officials as at 31 December 2011.  

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-3 Secretariat 
BECH – A2/003 
L-2920 Luxembourg 
Tel.: (352) 4301-34821 

5 

 
2. 

CONTRIBUTION RATE 

The 2012 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  9.9%  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  29  June  2012  meeting  and  has 
been reviewed and approved by independent actuarial consultants.  

The 9.9% calculated contribution rate is one third of the ratio between the total of the 
service  cost  (1  132  million  Euros)  and  the  total  of  annual  basic  salaries  (3  808 
million Euros) (see Appendix I, Tables I and II). This rate is 1.1 percentage points 
lower  than  the  one  calculated  in  2011  (11%)  but  not  implemented.  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 2012 assessment:  

–  the population of contributing members at 31.12.2011, 

–  the update of the Real Discount Rate (RDR) (2.8% in 2011 and 2.6% in 2012), 

–  the update of the General Salary Growth Rate (GSG) (0,3% in 2011 and -0.2% in 

2012), 

–  the update of the Individual Salary Progression rates (ISP), 

–  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. 

As  indicated  in  point  2,  the  official’s  pension  contribution  rate  calculated  this  year 
(9.9%)  is  lower  than  the  one  calculated  in  2011  (11.0%).  This  decrease  (-1.1 

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

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 
decreases  of  the  GSG  (0.3%  in  2011  to  -0.2%  in  2012)  and  of  the  RDR  (2.8%  in 
2011 to 2.6% in 2012). 

Changes  in  actuarial  assumptions  and  their  impact  on  the  contribution  rate  were 
presented in detail at the 29 June 2011 meeting of the Article 83 Working Group (see 
document 20120629 Art83_06). Further details are given in Appendix I. 

4.1. 

Real Discount Rate (RDR) 

The  RDR  (2.6%)  used  in  2012  calculation  is  lower  than  the  one  used  in  2011 
assessment  (2.8%).  The  observed  effect  was  a  0.5%  increase  of  the  calculated 
pension contribution rate. 

4.2. 

General Salary Growth (GSG) 

The GSG (-0.2%) used in 2012 calculation is lower than the one used for the 2011 
assessment  (0.3%).  Consequently  a  -1.4%  lowering  effect  was  observed  on  the 
calculated pension contribution rate. 

4.3. 

Individual Salary Progression (ISP) 

ISP  rates  have  been  updated  to  take  account  of  the  observed  promotion  rates  from 
2005  to  2011  in  accordance  with  methodology  agreed  at  the  June  2006  Art83  WG 
meeting. This update is further explained in Appendix I. 

The ISP update had no material impact on the pension contribution rate. 

4.4. 

Invalidity table 

The  invalidity  table  was  updated  with  the  most  recently  observed  invalidity  rates 
(2011). The new invalidity table (2011 EU Invalidity table) is thus an average of 5 
years  invalidity  rates  (2007  –  2011).  The  use  of  this  updated  table  had  no  material 
impact on the pension contribution rate (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. 

The life table used in the 2012 calculation is thus identical to that used in the 2011 
calculation and there is no impact on the calculated contribution rate due to a change 
in the table. 

2 

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

7 

 
                                                 
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  2012  calculation  is  identical  to  the  one  used  in  the 
previous calculation, no impact on the calculated pension contribution rate due to a 
change in the table was observed.  

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;  no 
impact on the calculated contribution rate due to a change in assumed retirement age 
was observed.  

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,  no  impact  on  the  calculated 
pension contribution rate due to a change in this age difference was observed.  

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 29 June 
2012 meeting of the Article 83 Working Group.  

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

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. 

8 

 
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, no impact on the calculated pension contribution rate due to a change in 
the loading factor was observed. 

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 was observed. 

4.12. 

Population change effect 

The  yearly  population  change  has  had  a  material  impact  (-0.2%)  on  the  pension 
contribution rate calculated this year. 

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.  

5.2. 

Demographic parameters 

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

(cid:131)  active officials,  

(cid:131)  members  whose  pension  contribution  is  optional  (e.g.  officials  who  have  taken 

leave on personal grounds or parental leave),  

(cid:131) 

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

9 

 
(cid:131)  Beneficiaries of an allowance for termination of service.  

56  239  contributing  members  were  recorded  at  31.12.2011,  which  represents  a  net 
increase of 1 354 participants compared to the previous year (at 31.12.2010, 54 885 
were used in the 2011 actuarial assessment).  

The  contributing  members  increase  is  the  net  effect  of  the  increase  due  to  the  new 
contributing  members  (+2  839)  and  the  decrease  linked  to  members  who  left  the 
scheme of became pensioners (-1 485).  

A  breakdown  of  the  reference  population  by  Institution  or  Agency  is  included  in 
Appendix I, Table VII and a pyramid of ages in Figure I.  

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 2012 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 
XII and XIII).  

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  ISRP  (International  Service  for  Remunerations  and 
Pensions), 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.  

10 

 
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

27.0%

Service cost for invalidity

Service cost for death

1.7%

1.0%

Total service cost

29.7%

9.0%

0.6%

0.3%

9.9%

Table II. 

Service cost and total amount of annual basic salaries 

Service cost

Total (EUR m illion)

%

- Service cost for retirement

1 029

- Service cost for invalidity

- Service cost for death

Total service cost

Total annual basic salaries and 
invalidity and termination 
allowances

 64

 39

1 132

3 808

90,9%

5,7%

3,4%

100,0%

11 

 
 
 
 
 
 
7. 

SUMMARY OF MAIN VARIABLES 

The  following  tables  show  the  values  of  the  main  parameters  (see  Table  III)  and 
actuarial assumptions (see Table IV) used for the PSEO actuarial assessment. 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 
information. 
complete 

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)

31.12.2011

Maximum official retirement age (Staff Regulations 
Article 52)

Minimum official retirement age (Staff Regulations 
Article 52 and Annex XIII Article 22)
Minimum age for early retirement (Staff Regulations 
Article 52, Annex VIII Article 9 and Annex XIII Article 
23)
Category and grade for the minimum subsistence 
figure (Annex VIII Article 6)

65 (67 on an exceptional basis)

63 or before for officials in service 
before 01.05.2004

55 or before for officials in service 
before 01.05.2004

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

12 

 
  
 
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

Expected inflaction rate over the duration of the 
scheme

Nominal Discount rate (NDR)

Real Discount rate (RDR)

General salary growth (GSG)

10%

0,0%

63 to 64

2,3%

4,9%

2,6%

-0,2%

General pension revaluation (GPR)

-0,2% (equal to the GSG)

Individual salary progression (ISP)

Mortality table (healthy members)

Mortality table

Invalidity table

2011 ISP Table

2008 ICSLT

Mortality rate of a person 3y older than 
an healthy member
2011 EU Invalidity Table

Some of the assumptions have changed compared to the 2011 actuarial assessment. 
The following table summarises these changes:  

Table V. 

Changes in actuarial assumptions 

Assumption

Assessment

31.12.2010

31.12.2011

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%

0.3%

1.5%

1.3%

1.6%

1.0%

0.0%

2.6%

-0.2%

1.2%

1.3%

1.6%

1.0%

0.0%

Life

Invalidity

2008 ICSLT

2008 ICSLT

2010 EU Invalidity 
table

2011 EU Invalidity 
table

(1) Average of 12 years preceding the year of the assessment
(2) Average of individual rates weighted by population as at 31.12.2011
(3) Single estimated rate
(4) No individual salary progression is envisaged

13 

 
 
 
 
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  2011  of  the  51  institutions  and  agencies  (same  number  recorded  at  31 
December 2010) whose officials are members of the PSEO.  

Table VI. 

Institutions and Agencies in the PSEO  

Abbr.

Institutions or assimilated organisations

COR

COMMITEE OF THE REGIONS

Abbr.

EMEA

Agencies (next)

EUROPEAN AGENCY FOR THE EVALUATION OF 
MEDICAL PRODUCTS

CONSIL

COUNCIL OF THE EUROPEAN UNION

EMSA

EUROPEAN MARITIME SAFETY AGENCY

CDCE

COURT OF AUDITORS

COJED

COURT OF JUSTICE OF EUROPEAN COMMUNITIES

CSC

CEC

ECONOMIC AND SOCIAL COMMITTEE

EUROPEAN COMMISSION

ENISA

EPA

ERC

ESA

EUROPEAN NETWORK AND INFORMATION SECURITY 
AGENCY
EUROPEAN INSURANCE AND OCCUPATIONAL 
PENSIONS AUTHORITY
EUROPEAN RESEARCH COUNCIL EXECUTIVE 
AGENCY

EURATOM SUPLY AGENCY

EDPS

EUROPEAN DATA PROTECTION SUPERVISOR

ESMA

EUROPEAN SECURITIES AND MARKET AUTHORITY

EO

EUROPEAN OMBUDSMAN

ETF

EUROPEAN TRAINING FOUNDATION

EUROPARL

EUROPEAN PARLIAMENT

EUROFOUND

EUROPEAN FOUNDATION FOR THE IMPROVEMENT 
OF LIVING AND WORKING CONDITIONS

Abbr.

ACER

Agencies

EUROJUST

JUDICIAL COOPERATION

AGENCY FOR THE COOPERATION OF ENERGY 
REGULATORS

EUROPOL

EUROPEAN POLICE OFFICE

ASO

EUROPEAN ASYLUM SUPPORT AGENCY

BEREC

CDT

CEDEFOP

THE BODY OF EUROPEAN REGULATORS FOR 
ELECTRONIC COMMUNICATIONS
TRANSLATION CENTRE FOR BODIES OF THE 
EUROPEAN UNION
EUROPEAN CENTRE FOR THE DEVELOPMENT OF 
VOCATIONAL TRAINING

CEPOL

EUROPEAN POLICE COLLEGE

ITER

OHIM

OSHA

THE EUROPEAN JOINT UNDERTAKING FOR ITER AND 
THE DEVELOPMENT OF FUSION ENERGY
OFFICE FOR HARMONISATION IN THE INTERNAL 
MARKET
EUROPEAN AGENCY FOR SAFETY AND HEALTH AT 
WORK

REA

RESEARCH EXECUTIVE AGENCY

TNT-T

THE TRANS-EUROPEAN TRASNPORT NETWORK 
EXECUTIVE AGENCY

CFCA

COMMUNITY FISHERIES CONTROL AGENCY

ARTEMIS

ARTEMIS JOINT UNDERTAKING

CPVO

COMMUNITY PLANT VARIETIES OFFICE

EXECUTIVE AGENCY FOR THE PUBLIC HEALTH 
PROGRAM

EUROPEAN AGENCY FOR RECONSTRUCTION

EAA

EAR

EAS

EUROPEAN EUROPEAN EXTERNAL ACTION SERVICE

EIT

EACEA

EACI

ECDC

EDUCATION, AUDIOVISUAL AND CULTURE EXECUTIVE 
AGENCY
EXECUTIVE AGENCY FOR CONPETITIVENESS AND 
INNOVATION
EUROPEAN CENTRE FOR DISEASE PREVENTION 
AND CONTROL
EUROPEAN INSTITUTE OF INNOVATION AND 
TECHNOLOGY

EASA

EUROPEAN AVIATION SAFETY AGENCY

ENIAC

ENIAC JOINT UNDERTAKING

EASO

EUROPEAN ASYLUM SUPPORT OFFICE

EBA

EUROPEAN BANKING AUTHORITY

ERA

FCH

ECHA

THE EUROPEAN CHEMICALS AGENCY

FRONTEX

EUROPEAN RAILWAYS AGENCY

FUEL CELLS AND HYDROGEN JOINT UNDERTAKING

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

EEA

EUROPEAN ENVIRONMENT AGENCY

GSA

THE EUROPEAN GNSS SUPERVISORY AUTORITY

EFRA

EUROPEAN MONITORING CENTRE FOR RACISM AND 
XENOPHOBIA

EFSA

EUROPEAN FOOD SECURITY AUTHORITY

IMI

JET

INNOVATIVE MEDICAMENTS INITIATIVE JOINT 
UNDERTAKING

JOINT EUROPEAN TORUS (J.E.T.)

EIGE

EUROPEAN INSTITUTE FOR GENDER EQUALITY

SKY

CLEAN SKY JOINT UNDERTAKING

EIOBA

EMCDDA

EUROPEAN INSURANCE AND OCCUPATIONAL 
PENSION AUTHORITY
EUROPEAN MONITORING CENTRE FOR DRUGS AND 
DRUG-ADDICTION

SMA

EUROPEAN SECURITIES AND MARKETS AUTHORITY

SSR

SESAR JOINT UNDERTAKING

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 

14 

 
 
 
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  NAP3,  from  Sysper24  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 institution or agency  

Institution or Agency

31.12.2010

31.12.2011

Total

%

Total

%

European Commission

31 703  

58%

30 523  

54%

European Parliament

7 871  

14%

7 932  

14%

Council of the European Union

3 207  

6%

3 257  

6%

Court of Justice of the European 
Communities

2 184  

4%

2 165  

4%

Court of Auditors

1 002  

2%

 942  

2%

Economic and Social Committee

 807  

1%

 820  

1%

Committee of the Regions

 601  

1%

 583  

1%

Other institutions and decentralised 
Community agencies 

7 510  

14%

10 017  

18%

Total

54 885  

100%

56 239  

100%  

Figure I. 

Reference population by age  

>64

60 - 64

55 - 59

50 - 54

s
e
g
A

45 - 49

40 - 44

35 - 39

30 - 34

25 - 29

20 - 24

Men:      24928

Women: 31311

Number of people

3  The NAP (New Application for Pay) 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. 

4  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 

15 

 
 
                                                 
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 VIII. 

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 VIII 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. 

16 

 
 
 
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 2006 (108) has been replaced by the number recorded in 2011 (96) in the 
moving 5 years average of invalidity observations. Thus the total of invalids in this 
5-year period decreased from 483 to 471 invalids. 

The following table shows the number of invalids from 2007 to 2010.  

Table IX. Invalids by year 

Year

Invalids

2007

2008

2009

2010

2011

Total

88

89

93

105

96

471

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  2007  to  2011  invalidity  observations  have  been  used  to  update  the  invalidity 
table  by  sex  (EU-2011  Invalidity  table).  The  following  table,  which  is  an  extract 
from the unisex version of the table, is only for presentation purposes: the complete 
table by sex is used in computations.  

Table X. EU-2011 Invalidity Table (Extract)  

Age

Invalidity probabilities of 
becom ing invalid at age x

q'x
0.000040

0.000061

0.000159

0.000459

0.001092

0.001887

0.003220

0.005091

0.003603

0.002098

x

20

25

30

35

40

45

50

55

60

65

17 

 
 
 
 
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 2012 pension assessment.  

The following table is an extract from this table:  

Table XI. 

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). Eurostat has 
also 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 2012 pension assessment had a negligible 
impact, close to 0 percentage points, on the pension contribution rate.  

18 

 
 
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  showing  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 2000 until 2011 have to be used in the 
2012 assessment of the PSEO.  

Nominal  discount  rate  (NDR):  4.9%.  This  is  the  average  of  2000  to  2011  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 2011  as produced by  the 
ECB being 4.9%.  

Inflation  rate  (IR):  2.3%.  This  is  the  average  of  2000  to  2011  of  an  appropriate 
consumer price index, the EU HICP in 2011 being 3.1%. 

Real  discount  rate  (RDR):  2.6%  (2.8%  in  the  assessment  at  31.12.2010).  It  is  the 
average  of  2000  to  2011  real  discount  rates,  the  latest  being  calculated  as 
"100*(100+NDR)/(100+IR)-100)". 

19 

 
Table XII. Real Discount Rate (RDR)  

Year

1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Aver. 1999 - 2010
Aver. 2000 - 2011

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

Inflationrate  
(IR)
(2)
1.1
2.4
2.5
2.2
2.0
2.1
2.2
2.2
2.3
3.7
1.0
2.1
3.1
2.1
2.3

Real discount rate 
(RDR)
(3)
4.5
3.4
3.1
3.2
3.0
2.8
1.8
2.0
2.2
1.1
3.7
2.8
1.7
2.8
2.6

(1) 

(2) 

(3) 

Till 1998: long-term government borrow ing rates. Since 1999: Euro zero-coupon 
government bond curve w ith a maturity of 21 years.
Till 1998: National Accounts private consumption deflator. Since 1999: Harmonised 
Index of Consumer Prices (HICP).
The follow ing 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 2011 is -3.5%, the 12-year moving geometric average from 
2000 to 2011 (GSG) is -0.2% (a value of 0.3% was used in the 2011 assessment).  

Table XIII.  General Salary Growth  

Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
GSG (Aver. 1999 - 2010)
GSG (Aver. 2000 - 2011)

SI
1.8
-0.1
0.6
1.7
1.1
-1.2
0.0
0.2
0.0
-1.3
2.8
-2.2
-3.5
0.3
-0.2

The decrease of the GSG (-0.2% used in this assessment instead of 0.3% used in the 
assessment  at  31.12.2010)  makes  the  contribution  rate  decrease  by  -1.4%  if  other 
assumptions remained stable. 

20 

 
 
 
 
 
9.3. 

Individual Salary Progression (ISP) 

1.1.1 

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  five  homogeneous  groups  according  to  their 
status. 

1.1.2 

ISP rates 

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

Table XIV. Average ISP rates by group of population  

ISP groups

1

2

3

4

5

Officials recruited before 01.05.2004

Officials recruited from 01.05.2004 
onwards

Temporary agents

Contract agents

PA. Fixed contract. Art 130

Average ISP rate by group
31.12.2011

Change

31.12.2010

1.5%

1.3%

1.6%

1.0%

0.0%

1.2%

1.3%

1.6%

1.0%

0.0%

-0.3%

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  at  individual 
level.  

ISP of officials changed slightly in comparison with these used in the assessment at 
31.12.2010. This change has no material impact on the pension contribution rate. 

9.4. 

Turnover 

1.1.3  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: 

21 

 
 
 
(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). 

1.1.4  T1. Turnover due to contract validity expiration  

Two assumptions have been used: 

(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 XV. T1 rates by contract types  

T1 (end of contract)

Contract Types

F2I (CDI / CDD)

1

AI1

FP. Contract with indefinite duration

BF1

BF2

BF3

BI1

BI2

DF1

DF2

DI1

EF1

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

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

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

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

0.27

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

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

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

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

0.07

PA. Fixed term contract. Art 130

Contract 
Duration 
Average
2

(2)

5.4

5.0

5.5

(2)

(2)

8.1

2.6

(2)

4.4

Colum n 1: Fix contracts became Indefinite at the end of the fix period (e.g. BI1 compared to total contracts (BF1 + BI1))

Colum n 2: Contract duration is limited to 35 in indefinite contracts (AI1, BI1, BI2 and DI1)
(2):  Non applicable to indefinite contracts

1.1.5  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 six years (2006 to 2011) compared to active staff in 2005 to 2010. 

22 

 
 
 
 
Table XVI. T2 rates by contract types  

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

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

BI2

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

0.005

0.051

0.057

0.063

0.031

0.032

0.018

0.099

0.073
0.116  

The change of turnover rates T1 and T2 this year has no significant impact (-0.1% ) 
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:  

(cid:131) 

(cid:131) 

the Real Discount Rate (RDR) from Table XII,  

the General Salary Growth (GSG) from Table XIII,  

(cid:131)  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,  

23 

 
 
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

Age

x

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

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. 
The calculated change: -1.1% (9.9% obtained in the present assessment against 11% 
in  the  assessment  at  31.12.2010)  is  mainly  explained  by  the  decreases  of  the  GSG 
and of the RDR.  

The following table summarises the impact of these changes. 

Table XVIII.  Explanation of the change in calculated pension contribution rates 
at 31.12.2010 and 31.12.2011  

Items

Remark

Change breakdown

Population at 31.12.2011 and 
assumptions 2011 instead of 2012

- Assumptions 2012 but  RDR 2011

- Assumptions 2012 but  GSG 2011

- Assumptions 2012 but  ISP 2011

- Assumptions 2012 but  Invalidity 2011

0.5

-1.4

0.0

0.0

- Assumptions 2012 but  Turnover 2011

-0.1

Change in assumptions

- RDR

- GSG

- ISP

- Invalidity

- Turnover

Changes on population and 
other changes

Total change

-0.9

-0.2

-1.1

24 

 
 
 
 
 
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  2012 
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 (9.9%) calculated by 
Eurostat is a sufficiently accurate estimate of the reality of the Pension Scheme of the 
European Officials (PSEO)". 

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

25