52008PC0788

[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 21.11.2008

COM(2008) 788 final

Proposal for a

COUNCIL (EC, EURATOM) REGULATION

adjusting with effect from 1 July 2008 the remuneration and pensions of officials and other servants of the European Communities and the correction coefficients applied thereto [SEC(2008) 2875]

(presented by the Commission)

EXPLANATORY MEMORANDUM

CONTEXT OF THE PROPOSAL |

110 | Grounds for and objectives of the proposal As is the case each year, under Article 3 of Annex XI to the Staff Regulations, the Council, acting on a Commission proposal based on the Eurostat report, must take a decision before the end of the year adjusting remuneration and pensions, with effect from 1 July. |

120 | General context In accordance with Article 3 of Annex XI to the Staff Regulations, the adjustment to remuneration and pensions derives directly from changes in the purchasing power of salaries in national civil services (specific indicator), changes in the cost of living in Brussels (International Index) and economic parities determined by Eurostat. The specific indicator measures changes in the net remuneration, exclusive of inflation, of national civil servants in Member States' central governments. Eurostat has calculated this indicator on the basis of information supplied by the eight Member States referred to in Article 1(4) of Annex XI. The Brussels International Index measures changes in the cost of living in Brussels for Community officials. Eurostat has drawn up this index on the basis of information provided by the Belgian authorities. The economic parities for remuneration establish the purchasing power equivalence of the remuneration paid in Brussels, as the reference city, with that paid in the other places of employment. Eurostat has calculated those parities in agreement with the national statistical bodies. The economic parities for pensions establish the purchasing power equivalence of the pension paid in Belgium, as the reference country, with that paid in the other countries of residence. Eurostat has calculated those parities in agreement with the national statistical bodies. |

130 | Existing provisions in the area of the proposal A proposal is presented each year for adjusting remuneration and pensions. |

141 | Consistency with other policies and objectives of the Union Not applicable. |

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT |

Consultation of interested parties |

211 | 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. |

212 | 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 |

229 | There was no need for external expertise. |

230 | Impact assessment - The purpose of the proposal is to adjust remuneration and pensions in accordance with the legislation in force. - The legislation in force permits no alternative. |

LEGAL ELEMENTS OF THE PROPOSAL |

305 | Summary of the proposed action In accordance with Article 1 of Annex XI to the Staff Regulations, Eurostat has drawn up a report on changes in the cost of living in Brussels, changes in the purchasing power of remuneration in national civil services, and the economic parities from which the weightings derive. 3.1. ADJUSTMENT TO REMUNERATION AND PENSIONS IN BELGIUM AND LUXEMBOURG The average change in the purchasing power of national civil servants' remuneration in the reference period measured by the specific indicator is equal to -1,3%. The change in the cost of living in Brussels in the reference period measured by the Brussels International Index calculated by Eurostat is equal to 4,4%. According to Article 3(2) of Annex XI to the Staff Regulations, the amount of the adjustment is obtained by multiplying together the specific indicator and Brussels International Index calculated by Eurostat. The proposed adjustment to remuneration and pensions in Belgium and Luxembourg is therefore 3,0%. Under Article 3(5) of Annex XI, no weighting is applicable in Belgium or Luxembourg. 3.2. ADJUSTMENT TO REMUNERATION AND PENSIONS OUTSIDE BELGIUM AND LUXEMBOURG Outside Belgium and Luxembourg the adjustment to remuneration and pensions is obtained by multiplying the adjustment in Belgium and Luxembourg by the change in weightings and in the exchange rate. The weightings applicable to remuneration, pensions and transfers of part of the remuneration that are set out in the Regulation have been calculated as follows: - Weightings for OFFICIALS outside Belgium and Luxembourg: Eurostat has calculated, in agreement with the national statistical bodies, the economic parities which establish the purchasing power equivalence of the remuneration paid in Brussels with that paid in the other places of employment at 1 July. The weightings applicable to the remuneration of officials and other servants employed in the Member States other than Belgium and Luxembourg are determined by the ratios between these economic parities and the exchange rates applicable at 1 July. - Weightings for PENSIONS outside Belgium and Luxembourg and weightings for TRANSFERS: Eurostat has calculated, in agreement with the national statistical bodies, the economic parities which establish the purchasing power equivalence of the pension paid in Brussels with that paid in the other countries of residence at 1 July. The weightings calculated for the pensions of individuals living outside Belgium and Luxembourg in the various countries are determined by the ratios between these economic parities and the exchange rates applicable at 1 July. Under Article 17 of Annex VII to the Staff Regulations, these weightings are directly applicable to transfers made by officials and other servants. Under Article 20 of Annex XIII to the Staff Regulations, the weightings apply only to the part of the pension corresponding to pension rights acquired before 1 May 2004. Under Article 20(2) of Annex XIII, the weightings applicable to pensions are obtained by taking a weighted average of the coefficients applicable to officials and the coefficients calculated for pensions. - Date on which the weightings enter into effect: These weightings take effect on 1 July for all places except those with a high cost-of-living increase, for which the weighting enters into effect on 16 May if the increase in the cost of living is greater than 6.3%, or 1 May if it is greater than 12.6%. Changes in the cost of living outside Belgium and Luxembourg are measured by the change in the implicit indices. These indices are calculated by multiplying the Brussels International Index by the change in the economic parity. The date of entry into force of this adjustment is earlier for the places referred to in the Regulation. |

310 | Legal basis The Staff Regulations, and in particular Annex XI thereto, constitute the legal basis. |

329 | Subsidiarity principle The proposal concerns an area that falls within the exclusive competence of the Community. The principle of subsidiarity does not therefore apply. |

Proportionality principle The proposal is consistent with the principle of proportionality for the following reasons: |

331 | - Annex XI to the Staff Regulations provides for a Council Regulation. |

332 | - The financial burden results directly from the application of the adjustment method provided for in the Staff Regulations. |

Choice of instruments |

341 | Proposed instrument: Regulation. |

342 | Other instruments would be inappropriate for the following reasons: - Annex XI to the Staff Regulations provides for a Council Regulation. |

BUDGETARY IMPLICATIONS |

401 | The impact of the adjustment to remuneration and pensions on administrative expenditure and on revenue is detailed in the financial statement annexed hereto. |

Proposal for a

COUNCIL (EC, EURATOM) REGULATION

adjusting with effect from 1 July 2008 the remuneration and pensions of officials and other servants of the European Communities and the correction coefficients applied thereto

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to the Protocol on the Privileges and Immunities of the European Communities, and in particular Article 13 thereof,

Having regard to the Staff Regulations of Officials and the Conditions of Employment of other Servants of the European Communities laid down by Regulation (EEC, Euratom, ECSC) No 259/68, and in particular Articles 63, 64, 65 and 82 of the Staff Regulations and Annexes VII, XI and XIII thereto, and Articles 20 (first paragraph), 64 and 92 of the Conditions of Employment of other Servants,

Having regard to the proposal from the Commission,

Whereas:

(1) In order to guarantee that the purchasing power of Community officials and other servants develops in parallel with that of national civil servants in the Member States, the remuneration and pensions of officials and other servants of the European Communities should be adjusted under the 2008 annual review,

HAS ADOPTED THIS REGULATION:

Article 1

With effect from 1 July 2008, the date “1 July 2007” in the second paragraph of Article 63 of the Staff Regulations shall be replaced by “1 July 2008”.

Article 2

With effect from 1 July 2008, the table of basic monthly salaries in Article 66 of the Staff Regulations applicable for the purposes of calculating remuneration and pensions shall be replaced by the following:

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Article 3

With effect from 1 July 2008, the correction coefficients applicable to the remuneration of officials and other servants under Article 64 of the Staff Regulations shall be as indicated in column 2 of the following table.

With effect from 1 January 2009, the correction coefficients applicable under Article 17(3) of Annex VII to the Staff Regulations to transfers by officials and other servants shall be as indicated in column 3 of the following table.

With effect from 1 July 2008, the correction coefficients applicable to pensions under Article 20(1) of Annex XIII to the Staff Regulations shall be as indicated in column 4 of the following table.

With effect from 16 May 2008, the correction coefficients applicable to the remuneration of officials and other servants under Article 64 of the Staff Regulations shall be as indicated in column 5 of the following table.

With effect from 1 May 2008, the correction coefficients applicable to the remuneration of officials and other servants under Article 64 of the Staff Regulations shall be as indicated in column 6 of the following table.

With effect from 16 May 2008, the correction coefficients applicable to pensions under Article 20(1) of Annex XIII to the Staff Regulations shall be as indicated in column 7 of the following table.

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Article 4

With effect from 1 July 2008, the amount of the parental leave allowance referred to in the second and third paragraphs of Article 42a of the Staff Regulations shall be EUR 878,32, and shall be EUR 1171,09 for single parents.

Article 5

With effect from 1 July 2008, the basic amount of the household allowance referred to in Article 1(1) of Annex VII to the Staff Regulations shall be EUR 164,27.

With effect from 1 July 2008, the amount of the dependent child allowance referred to in Article 2(1) of Annex VII to the Staff Regulations shall be EUR 358,96.

With effect from 1 July 2008, the amount of the education allowance referred to in Article 3(1) of Annex VII to the Staff Regulations shall be EUR 243,55.

With effect from 1 July 2008, the amount of the education allowance referred to in Article 3(2) of Annex VII to the Staff Regulations shall be EUR 87,69.

With effect from 1 July 2008, the minimum amount of the expatriation allowance referred to in Article 69 of the Staff Regulations and in the second subparagraph of Article 4(1) of Annex VII thereto shall be EUR 486,88.

Article 6

With effect from 1 January 2009, the kilometric allowance referred to in Article 8(2) of Annex VII to the Staff Regulations shall be adjusted as follows:

EUR 0 for every km from 0 to 200 km

EUR 0,3651 for every km from 201 to 1 000 km

EUR 0,6085 for every km from 1 001 to 2 000 km

EUR 0,3651 for every km from 2 001 to 3 000 km

EUR 0,1216 for every km from 3 001 to 4 000 km

EUR 0,0586 for every km from 4 001 to 10 000 km

EUR 0 for every km over 10 000 km.

To the above kilometric allowance a flat-rate supplement shall be added, amounting to:

- EUR 182,54 if the distance by train between the place of employment and the place of origin is between 725 km and 1 450 km;

- EUR 365,04 if the distance by train between the place of employment and the place of origin is greater than 1 450 km.

Article 7

With effect from 1 July 2008, the daily subsistence allowance referred to in Article 10(1) of Annex VII to the Staff Regulations shall be:

- EUR 37,73 for an official who is entitled to the household allowance;

- EUR 30,42 for an official who is not entitled to the household allowance.

Article 8

With effect from 1 July 2008, the lower limit for the installation allowance referred to in Article 24(3) of the Conditions of Employment of other Servants shall be:

- EUR 1074,14 for a servant who is entitled to the household allowance;

- EUR 638,68 for a servant who is not entitled to the household allowance.

Article 9

With effect from 1 July 2008, for the unemployment allowance referred to in the second subparagraph of Article 28a(3) of the Conditions of Employment of other Servants, the lower limit shall be EUR 1288,19, the upper limit shall be EUR 2576,39 and the standard allowance shall be EUR 1171,09.

Article 10

With effect from 1 July 2008, the table of basic monthly salaries in Article 63 of the Conditions of Employment of other Servants shall be replaced by the following:

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Article 11

With effect from 1 July 2008, the table of basic monthly salaries in Article 93 of the Conditions of Employment of other Servants shall be replaced by the following:

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Article 12

With effect from 1 July 2008, the lower limit for the installation allowance referred to in Article 94 of the Conditions of Employment of other Servants shall be:

- EUR 807,93 for a servant who is entitled to the household allowance;

- EUR 479,00 for a servant who is not entitled to the household allowance.

Article 13

With effect from 1 July 2008, for the unemployment allowance referred to in the second subparagraph of Article 96(3) of the Conditions of Employment of other Servants, the lower limit shall be EUR 966,15, the upper limit shall be EUR 1932,29 and the standard allowance shall be EUR 878,32.

Article 14

With effect from 1 July 2008, the allowances for shiftwork laid down in the first subparagraph of Article 1(1) of Council Regulation (ECSC, EEC, Euratom) No 300/76[1] shall be EUR 368,17, EUR 555,70, EUR 607,58 and EUR 828,33.

Article 15

With effect from 1 July 2008, the amounts referred to in Article 4 of Council Regulation (EEC, Euratom, ECSC) No 260/68[2] shall be subject to a coefficient of 5,314614.

Article 16

With effect from 1 July 2008, the table in Article 8(2) of Annex XIII to the Staff Regulations shall be replaced by the following:

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Article 17

With effect from 1 July 2008, the amount of the dependent child allowance referred to in the first subparagraph of Article 14 of Annex XIII to the Staff Regulations shall be as follows:

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Article 18

With effect from 1 July 2008, the amount of the education allowance referred to in the first subparagraph of Article 15 of Annex XIII to the Staff Regulations shall be as follows:

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Article 19

With effect from 1 July 2008, for the purposes of application of Article 18(1) of Annex XIII to the Staff Regulations, the amount of the fixed allowance mentioned in the former Article 4a of Annex VII to the Staff Regulations in force before 1 May 2004 shall be:

- EUR 127,01 per month for officials in Grade C4 or C5;

- EUR 194,73 per month for officials in Grade C1, C2 or C3.

Article 20

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union .

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council

The President

LEGISLATIVE FINANCIAL STATEMENT

1. NAME OF THE PROPOSAL:

COUNCIL REGULATION (EC, EURATOM) adjusting with effect from 1 July 2008 the remuneration and pensions of officials and other servants of the European Communities and the weightings applied thereto.

2. ABM/ABB (ACTIVITY-BASED MANAGEMENT/ACTIVITY-BASED BUDGETING) FRAMEWORK

Policy area(s) concerned and associated activity/activities:

All areas and activities are potentially concerned.

3. BUDGET LINES

3.1. Budget lines (operational lines and related technical and administrative assistance lines (ex-BA lines)), including headings:

Expenditure: XX.01.01.01 Commission and Chapter 11 Other institutions

Revenue: 400 - Proceeds of the tax on the salaries, wages and allowances of officials, other servants and persons in receipt of a pension, 404 - Proceeds from the special levy on the salaries of members of the institutions, officials and other servants in active employment, 410 - Staff contributions to the pension scheme.

3.2. Duration of the action and of the financial impact:

Indefinite

3.3. Budgetary characteristics (add rows if necessary):

Budget line | Nature of the expenditure | New | EFTA contribution | Contributions from applicant countries | Heading in financial perspective |

XX.01.01.01 and Chapter 11 | Non-compulsory expenditure | NDA[3] | NO | NO | NO | No [5] |

4. SUMMARY OF RESOURCES

4.1. Financial resources

4.1.1. Summary of commitment appropriations (CA) and payment appropriations (PA)

EUR million (to three decimal places)

Nature of expenditure | Section No | Year 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | Total |

Operational expenditure[4] |

Commitment appropriations (CA) | 8.1 | a |

Payment appropriations (PA) | b |

Administrative expenditure included in reference amount[5] |

Technical and administrative assistance (NDA) | 8.2.4 | c |

TOTAL REFERENCE AMOUNT |

Commitment appropriations | a+c |

Payment appropriations | b+c |

Administrative expenditure not included in reference amount[6] |

Human resources and associated expenditure (NDA) | 8.2.5 | d | 72.1 | 144.1 | 144.1 | 144.1 | 144.1 | 144.1 | n/a |

Administrative costs, other than human resources and associated costs, not included in reference amount (NDA) | 8.2.6 | e |

Total indicative financial cost of intervention

TOTAL CA, including cost of human resources | a+c+d+e | 72.1 | 144.1 | 144.1 | 144.1 | 144.1 | 144.1 | n/a |

TOTAL PA, including cost of human resources | b+c+d+e | 72.1 | 144.1 | 144.1 | 144.1 | 144.1 | 144.1 | n/a |

Co-financing details

If the proposal involves co-financing by Member States, or other specified bodies, an estimate of the level of this co-financing should be indicated in the table below:

EUR million (to three decimal places)

Co-financing body | Year n | n + 1 | n + 2 | n + 3 | n + 4 | n + 5 and later | Total |

…………………… | f |

TOTAL CA including co-financing | a+c+d+e+f |

4.1.2. Compatibility with financial programming

X Proposal is compatible with existing financial programming.

♦ Proposal will entail reprogramming of the relevant heading in the financial perspective.

♦ Proposal may require application of the provisions of the Interinstitutional Agreement[7] (i.e. flexibility instrument or revision of the financial perspective).

4.1.3. Financial impact on revenue

♦ Proposal has no financial impact on revenue

X Financial impact - The effect on revenue is as follows:

EUR million (to one decimal place)

Prior to action 2008 | Situation following action |

Budget line | Revenue | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 |

410 Pension contribution | a) Revenue in absolute terms | 309.3 | 314.0 | 318.6 | 318.6 | 318.6 | 318.6 | 318.6 |

b) Change in revenue | Δ | 4.7 | 9.3 | 9.3 | 9.3 | 9.3 | 9.3 |

400 Tax | a) Revenue in absolute terms | 421.1 | 427.4 | 433.7 | 433.7 | 433.7 | 433.7 | 433.7 |

b) Change in revenue | Δ | 6.3 | 12.6 | 12.6 | 12.6 | 12.6 | 12.6 |

404 Special levy | a) Revenue in absolute terms | 39.2 | 39.8 | 40.4 | 40.4 | 40.4 | 40.4 | 40.4 |

b) Change in revenue | Δ | 0.6 | 1.2 | 1.2 | 1.2 | 1.2 | 1.2 |

4.2. Human Resources FTE (including officials, temporary and external staff) - see detail under point 8.2.1.

Annual requirements | Year n | n + 1 | n + 2 | n + 3 | n + 4 | n + 5 and later |

Total number of human resources |

5. CHARACTERISTICS AND OBJECTIVES

5.1. Need to be met in the short or long term

Obligation under the Staff Regulations

5.2. Added value of Community involvement and coherence of the proposal with other financial instruments and possible synergy

Not applicable.

5.3. Objectives, expected results and related indicators of the proposal in the context of the ABM framework

Not applicable.

5.4. Method of implementation (indicative)

♦ Centralised management

X directly by the Commission: PMO

- ♦ indirectly by delegation to:

- ♦ executive agencies

- ♦ bodies set up by the Communities as referred to in Article 185 of the Financial Regulation

- ♦ national public-sector bodies/bodies with public-service mission

♦ Shared or decentralised management

- ♦ with Member States

- ♦ with third countries

♦ Joint management with international organisations

Relevant comments:

6. MONITORING AND EVALUATION

6.1. Monitoring system

Not applicable.

6.2. Evaluation

6.2.1. Ex-ante evaluation

Not applicable.

6.2.2. Measures taken following an intermediate/ex-post evaluation (lessons learned from similar experiences in the past)

Not applicable.

6.2.3. Terms and frequency of future evaluations

Evaluation at the end of the fourth year as from July 2004

7. ANTI-FRAUD MEASURES

Not applicable.

8. DETAILS OF RESOURCES

8.1. Objectives of the proposal in terms of their financial cost

Not applicable.

8.2. Administrative expenditure

8.2.1. Number and type of human resources

Types of post | Staff to be assigned to management of the action using existing and/or additional resources (number of posts/FTEs) |

Year n | Year n+1 | Year n+2 | Year n+3 | Year n+4 | Year n+5 |

Officials or temporary staff[8] (XX 01 01) | A*/AD |

B*, C*/AST |

Staff financed[9] by Article XX 01 02 |

Other staff financed[10] by Article XX 01 04/05 |

TOTAL |

8.2.2. Description of tasks deriving from the action

8.2.3. Sources of human resources (statutory)

- ♦ Posts currently allocated to the management of the programme to be replaced or extended

- ♦ Posts pre-allocated within the APS/PDB exercise for year n

- ♦ Posts to be requested in the next APS/PDB procedure

- ♦ Posts to be redeployed using existing resources within the managing service (internal redeployment)

- ♦ Posts required for year n although not foreseen in the APS/PDB exercise of the year in question

8.2.4. Other administrative expenditure included in reference amount (XX 01 04/05 – Expenditure on administrative management)

EUR million (to three decimal places)

Budget line (No and title) | Year n | Year n+1 | Year n+2 | Year n+3 | Year n+4 | Year n+5 and later | TOTAL |

1. Technical and administrative assistance (including related staff costs) |

Executive agencies |

Other technical and administrative assistance |

- intra muros |

- extra muros |

Total technical and administrative assistance |

8.2.5. Financial cost of human resources and associated costs not included in the reference amount

EUR million (to three decimal places)

Type of human resources | Year n | Year n+1 | Year n+2 | Year n+3 | Year n+4 | Year n+5 and later |

Officials and temporary staff (XX 01 01) |

Staff financed by Article XX 01 02 (auxiliary, END, contract staff, etc.) (specify budget line) |

Total cost of human resources and associated costs (NOT included in reference amount) |

Calculation- Officials and temporary agents

Reference should be made to Point 8.2.1, if applicable

Calculation- Staff financed under Article XX 01 02

Reference should be made to Point 8.2.1, if applicable

8.2.6. Other administrative expenditure not included in reference amount

EUR million (to three decimal places)

Year n | Year n+1 | Year n+2 | Year n+3 | Year n+4 | Year n+5 and later | TOTAL |

XX 01 02 11 01 - Missions |

XX 01 02 11 02 - Meetings and conferences |

XX 01 02 11 03 - Committees |

XX 01 02 11 04 - Studies and consultations |

XX 01 02 11 05 - Information systems |

2. Total other management expenditure (XX 01 02 11) |

3. Other expenditure of an administrative nature (specify including reference to budget line) |

Total administrative expenditure, other than human resources and associated costs (NOT included in reference amount) |

Calculation - Other administrative expenditure not included in reference amount

[1] Council Regulation (ECSC, EEC, Euratom) No 300/76 of 9 February 1976 determining the categories of officials entitled to allowances for shiftwork, and the rates and conditions thereof (OJ L 38, 13.2.1976, p. 1). Regulation as supplemented by Regulation (Euratom, ECSC, EEC) No 1307/87 (OJ L 124, 13.5.1987, p. 6).

[2] Regulation (EEC, Euratom, ECSC) No 260/68 of the Council of 29 February 1968 laying down the conditions and procedure for applying the tax for the benefit of the European Communities (OJ L 56, 4.3.1968, p. 8).

[3] Non-differentiated appropriations.

[4] Expenditure not falling under Chapter xx 01 of Title xx concerned.

[5] Expenditure falling under Article xx 01 04 of Title xx.

[6] Expenditure falling under Chapter xx 01, other than Articles xx 01 04 or xx 01 05.

[7] See points 19 and 24 of the Interinstitutional Agreement.

[8] Cost of which is NOT covered by the reference amount.

[9] Cost of which is NOT covered by the reference amount.

[10] Cost of which is included in the reference amount.