EC Staff Regulations: reform, pay and pension

PURPOSE : to phase in certain reform measures on staff pay and pension. PROPOSED ACT : Council Regulation. CONTENT : the overhaul of the current Staff Regulations and Conditions of Employment, which were originally adopted in 1962, have led to the requirement to phase in certain reform measures. The adjustment of pay scales on the basis of the current method, a new special levy and a new pension contribution rate will take effect as of 1 January 2004, by way of transitional measures. The revised Regulation amending the Staff Regulations will enter into force on 1 May 2004. The new special levy is introduced to reflect the costs of social policy, improved working conditions and the European Schools. The special levy will be applied from 1 January 2004 until 30 April 2004. The rate of this special levy is shall be 2.5%. The proposal sets out the method of calculation. With regard to pension contribution, for the period from 1 January 2004 until 30 April 2004, the contribution rate is set at 9,25%. The maximum rate for payments under Art. 42 of the Conditions of employment of other servants of the European Communities is set at 18,5%. With regard to pay, Annex XI to the Staff Regulations will continue to apply from 1 July 2003 until 30 June 2004, and the value of this adjustment will be 3.4%. FINANCIAL IMPLICATIONS : - Budget Headings : A10 members of the European institutions. A11 staff in active employment. 401 staff contribution to the pension scheme. Part B administrative expenditure and receipts for research and agencies. 403 special levy. - Expenditure : 2003 - EUR (-) 51 million. - Revenue : 2003 = EUR (-) 26 million. 2004 = EUR (-) 3 million.�