Explanatory Memorandum to COM(2013)770 - Adjustment, from 1 July 2013, of the rate of contribution to the pension scheme of officials and other servants of the EU - Main contents
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| dossier | COM(2013)770 - Adjustment, from 1 July 2013, of the rate of contribution to the pension scheme of officials and other servants of the EU. |
|---|---|
| source | COM(2013)770  |
| date | 07-11-2013 |
|| 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(3) of the Staff Regulations, on the occasion of the five-yearly actuarial assessment in accordance with Annex XII and in order to ensure the balance of the scheme, the Council shall decide on the rate of contribution and any change to the pensionable age. 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.
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 Union 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 10.3 % of the official's basic salary. Under Article 83a(3), 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 (10.3 %), the Council is to adjust the rate, in accordance with the arrangements laid down in Annex XII. The Commission is therefore proposing that the rate of contribution be adjusted to 10.3 % with effect from 1 July 2013. It should be noted that: – the Council Decision of 19 December 2011 concerning the Commission’s proposal for a Council Regulation adjusting with the effect from 1 July 2011 the remuneration and pension of the officials and other servants of the European Union and the correction coefficients applied thereto (2011/866/EU) – the Council's failure to adopt the Commission’s proposal for a Council Regulation adjusting with the effect from 1 July 2012 the remuneration and pension of the officials and other servants of the European Union and the correction coefficients applied thereto (COM(2012) 754 final) are subject to proceedings before the Court of Justice of the European Union. Should the Court uphold the Commission's position, the Council will have to take the necessary measures under Article 266 TFEU and modify the pension contribution rate accordingly.
|| 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.
|| The impact on revenue of the adjustment to the rate of contribution to the pension scheme is detailed in the financial statement annexed hereto.