Explanatory Memorandum to COM(2010)679 - Adjustment, from 1 July 2010, of the rate of contribution to the pension scheme of officials and other servants of the EU - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2010)679 - Adjustment, from 1 July 2010, of the rate of contribution to the pension scheme of officials and other servants of the EU. |
|---|---|
| source | COM(2010)679  |
| date | 18-11-2010 |
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 i 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.
Consistency with other policies and objectives of the Union Not applicable.
Contents
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 Communities in order to maintain the actuarial balance of the scheme. The legislation in force permits no alternative.
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 i, where it is shown that there is a gap of at least 0.25 points between the rate of contribution currently applied (11.3%) 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 11.0% with effect from 1 July 2010.
Legal basis Staff Regulations of Officials of the European Communities, 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 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.
The impact on revenue of the adjustment to the rate of contribution to the pension scheme is detailed in the financial statement annexed hereto.