Explanatory Memorandum to COM(2000)569-2 - Amendment of the staff Regulations of officials and the conditions of employment of other servants of the EC as regards the arrangements for the adjustment of remuneration and the temporary contribution (presented by the Commission pursuant to Article 283 of the Treaty establishing the EC)

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The current method for the annual adjustment of the remuneration (including allowances and pensions) of staff of EU institutions and the temporary contribution expire on 30 June 2001.

In view of the time required to conduct the statutory consultations, it would be impossible for the Commission to take account of the implications of the reform in the proposal it would have to present this year in order to have a method in force in July 2001.

Given the link between, on the one hand, remuneration and pensions and, on the other, the reform, and the complications inherent in having two major consecutive sets of negotiations, the best approach for the staff and the institutions would be to have a single comprehensive set of negotiations covering remuneration and pensions and the reform.

The Commission is accordingly proposing to extend by two years the period of validity of the current system of pay and pensions and undertakes to present to the Council by December 2001 a comprehensive proposal for a review of the Staff Regulations which would cover the reform, the new method and the actuarial balance of the pensions scheme.

The proposal set out below accordingly extends by two years the period of validity of both the current method for adjusting remuneration and the temporary contribution, both of which would otherwise expire on 30 June 2001.