Annexes to COM(2010)449 - 2006-2008 Report on the financial situation of the EC unemployment benefit scheme for former members of the temporary staff and contract staff who are unemployed after the termination of their service in a EU institution - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2010)449 - 2006-2008 Report on the financial situation of the EC unemployment benefit scheme for former members of the temporary staff ... |
|---|---|
| document | COM(2010)449  |
| date | August 31, 2010 |
- Annual regulations on the adjustment of salaries, pensions and other allowances.
THE FINANCIAL SITUATION OF THE UNEMPLOYMENT FUND
The situation of the Unemployment Fund is set out below in two different ways. In the first point (“Accounting situation”) the figures are set out as they appear in the accounts: a financial operation is listed for the year in which it was entered in the accounts (“Accounting situation”). However, some receipts and payments relate to operations which began in the year preceding the entry. In the second point (“Financial situation”) the figures are set out in line with the accrual accounting system. To this end, the entries must be listed under the year in which they originated.
Accounting situation: 2005-2008 operating results and accumulated balances
Table 1 gives a summary of receipts and payments as entered in the accounts and the resulting current balance.
The amounts recorded under “unemployment allowances” systematically include the basic unemployment allowance, any family allowances and, for the original scheme only, the effect of the weighting. Any social benefits received at a national level (including unemployment benefits, family allowances, sickness benefits, maternity benefits, etc.) are deducted.
Contributions to the Community sickness insurance scheme (JSIS) are covered in their entirety by the Community unemployment scheme (5.1% of the unemployed person’s reference basic salary). Personal contributions to the JSIS are not deducted from Community unemployment benefit.
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The Unemployment Fund uses two management instruments for its receipts and payments: a current account for receiving payments and paying allowances, and a number of term accounts for investing surpluses accumulated in the current account.
The first part of Table 2 shows operations on the current account; the second part of the table shows the income from the term accounts, as well as the movements between the two accounts. The third part shows the total accumulated surpluses for the two accounts.
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The surplus increased by 40% in 2006 and 23% in 2007. It fell by 1% in 2008. With an accumulated surplus of almost €16.2 million in 2008, the current situation of the Fund is therefore satisfactory from an accounting perspective.
Table 3 and diagram 1 also list the accumulated five-year balances mentioned in the previous report and thus show the trend of the cumulative balance in the long term (1985-2008).
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Financial situation: 2005-2008 operating results
Some of the receipts entered in the accounts at the start of year N are amounts deducted from salaries at the end of year N-1, and some of the unemployment allowance payments made and entered at the start of year N cover periods of unemployment at the end of year N-1. In accordance with the principles of accrual accounting, these accounting entries should be entered in year N-1.
Table 4 and diagram 2 show receipts and payments according to this principle and therefore indicate the Unemployment Fund’s annual “financial” situation as regards receipts and payments.
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Receipts increased sharply in 2006 compared with the previous year (36%) and continued to grow in 2007 (15%) and 2008 (12%). Payments fell in 2006 (-5%) and increased sharply in 2007 (45%) and 2008 (48%). This time-lag between receipts and payments led to substantial surpluses in 2006 and 2007 but a slight deficit in 2008. This deficit is offset by interest on investments. Diagram 3 sets out the current balance and the interest for 2005-2008.
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This trend in receipts and payments is largely due to the creation of new agencies and the introduction since 2004 of a new category of staff: contract staff employed for a fixed period (maximum three years). The recruitment of contract staff over the period 2004-2007 led to an increase in receipts with no immediate effect on payments, whereas when the first contracts came to an end, giving the right to an unemployment allowance, payments increased considerably from 2007.
Financial situation: breakdown of payments and receipts by institution and for all the agencies in 2005-2008
Table 5 provides a breakdown of payments and receipts by institution and for all the agencies.
The first part of the table gives absolute figures, the second part the percentages for each institution and all the agencies as a proportion of total payments and receipts.
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