Council Regulation (EC, Euratom) No 723/2004 of 22 March 2004 amending the Staff Regulations of officials of the European Communities and the Conditions of Employment of other servants of the European Communities

"1. An official who provides evidence of being unable to carry out his duties by reason of illness or accident shall be entitled to sick leave.

The official concerned shall notify his institution of his incapacity as soon as possible and at the same time state his current address. He shall produce a medical certificate if he is absent for more than three days. This certificate must be sent on the fifth day of absence at the latest, as evidenced by the date as postmarked. Failing this, and unless failure to send the certificate is due to reasons beyond his control, the official's absence shall be considered as unauthorised.

The official may at any time be required to undergo a medical examination arranged by the institution. If the examination cannot take place for reasons attributable to the official, his absence shall be considered as unauthorised as from the date that the examination is due to take place.

If the finding made in the examination is that the official is able to carry out his duties, his absence shall, subject to the following subparagraph, be regarded as unjustified from the date of the examination.

If the official considers the conclusions of the medical examination arranged by the Appointing Authority to be unjustified on medical grounds, he or a doctor acting on his behalf may within two days submit to the institution a request that the matter be referred to an independent doctor for an opinion.

The institution shall immediately transmit the request to another doctor agreed upon by the official's doctor and the institution's medical officer. Failing such agreement within five days of the request, the institution shall select a person from a list of independent doctors to be established for this purpose each year by common consent of the Appointing Authority and the Staff Committee. The official may within two working days object to the institution's choice, whereupon the institution shall choose another person from the list, which choice shall be final.

The independent doctor's opinion given after consultation of the official's doctor and the institution's medical officer shall be binding. Where the independent doctor's opinion confirms the conclusion of the examination arranged by the institution, the absence shall be treated as unjustified from the date of that examination. Where the independent doctor's opinion does not confirm the conclusion of that examination, the absence shall be treated for all purposes as having been justified.

In cases of dispute, the procedure laid down in the fifth to seventh subparagraphs of paragraph 1 shall apply.

In the latter case, the practitioner's fees shall be payable by the institution up to a maximum amount fixed for a period of no more than three years by the Appointing Authority after consulting the Staff Regulations Committee.";

59) Article 59a is replaced by the following:

"Article 59a

The annual leave of an official who is authorised to work part time shall, for as long as he is so authorised, be reduced proportionally.";

60) in Article 66 the table is replaced by the following:

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61) Article 66a is replaced by the following:

"Article 66a

2.

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(i) social security and pension contributions and the tax, before special levy, payable by an official in the same grade and step without dependants within the meaning of Article 2 of Annex VII, and

(ii) an amount equal to the basic salary of an official in grade 1, step 1.

(b) The components used to determine the base for the special levy shall be expressed in euro and weighted at 100.

62) Article 68a is replaced by the following:

"Article 68a

An official who is authorised to work part time shall be entitled to remuneration calculated as provided for in Annex IVa.";

63) Article 70 is replaced by the following:

"Article 70

In the event of an official's death, the surviving spouse or dependent children shall receive the deceased's full remuneration until the end of the third month after the month in which the death occurred.

In the event of the death of a person entitled to a pension or invalidity allowance, the above provisions shall apply in respect of the deceased's pension or allowance.";

64) Article 70a is deleted;

65) Article 72 is amended as follows:

(a) in paragraph 1, the following subparagraphs are inserted after the first subparagraph:"The unmarried partner of an official shall be treated as the spouse under the sickness insurance scheme, where the first three conditions in Article 1(2)(c) of Annex VII are met.

The institutions may, under the rules referred to in the first subparagraph, confer on one of their number the power to lay down the rules governing the reimbursement of expenses in accordance with the procedure laid down in Article 110.";

(b) in paragraph 1a, first sentence, the words "he cannot be covered by any other public scheme of sickness insurance" are replaced by "he is not in gainful employment";

(c) in paragraph 1b, first sentence, the words "he or she cannot be covered by any other public scheme of sickness insurance" are replaced by "he or she is not in gainful employment";

(d) paragraph 2 is replaced by the following:

"2. An official who has remained in the service of the Communities until the age of 63 years or who is in receipt of an invalidity allowance shall be entitled to the benefits provided for in paragraph 1 after he has left the service. The amount of contribution shall be calculated by reference to the amount of pension or allowance.

Those benefits shall also apply to the person entitled to survivor's pension following the death of an official who was in active employment or who remained in the service of the Communities until the age of 63 years, or the death of a person entitled to an invalidity allowance. The amount of contribution shall be calculated by reference to the amount of the survivor's pension.";

(e) paragraph 2a is replaced by the following:

"2a. The following shall likewise be entitled to the benefits provided for in paragraph 1, on condition that they are not in gainful employment:

(i) former officials entitled to retirement pensions who leave the service of the Communities before reaching the age of 63,

(ii) persons entitled to a survivor's pension as a result of the death of a former official who left the service of the Communities before reaching the age of 63.

The contribution referred to in paragraph 1 shall be calculated by reference to the former official's pension before application, where appropriate, of the reduction coefficient provided for in Article 9 of Annex VIII to the Staff Regulations.

However, persons entitled to an orphan's pension shall not receive the benefit provided for in paragraph 1 unless they apply for it. The contribution shall be calculated by reference to the orphan's pension.";

(f) the following paragraphs are inserted:

"(2b) In the case of persons entitled to a retirement pension or a survivor's pension, the contribution referred to in paragraphs 2 and 2a may not be less than that calculated by reference to the basic salary corresponding to the first step in grade 1.

(2c) Officials dismissed in accordance with Article 51 and not entitled to a retirement pension shall likewise be entitled to the benefits provided for in paragraph 1, on condition that they are not gainfully employed and that they bear half the contribution calculated by reference to their last basic salary.";

66) in Article 76 the words "a disability or" are inserted after "reason of";

67) the following Article is inserted:

"Article 76a

A surviving spouse who has a serious or protracted illness or who is disabled may receive financial aid increasing the pension from the institution for the duration of the illness or disability on the basis of an examination of the social and medical circumstances of the person concerned. Rules implementing this Article shall be fixed by common accord between the institutions, after consulting the Staff Regulations Committee.";

68) In Title V, the heading of Chapter 3 is replaced by "Pensions and invalidity allowance";

69) Article 77 is amended as follows:

(a) in the first paragraph, the number "60" is replaced by "63";

(b) in the second paragraph, the second and third sentences are replaced by the following sentence: "1,90 % of this final basic salary shall be payable to an official for each year of service reckoned in accordance with Article 3 of Annex VIII";

(c) in the fifth paragraph, the number "60" is replaced by "63";

70) Article 78 is replaced by the following:

"Article 78

An official shall be entitled, in the manner provided for in Articles 13 to 16 of Annex VIII, to an invalidity allowance in the case of total permanent invalidity preventing him from performing the duties corresponding to a post in his function group.

Article 52 shall apply by analogy to recipients of an invalidity allowance. If the recipient of an invalidity allowance retires before the age of 65 without having reached the maximum pension entitlement, the general rules on retirement pensions shall be applied. The amount of the retirement pension shall be based on the salary for the grade and step occupied by the official when he became an invalid.

The invalidity allowance shall be equal to 70 % of the official's last basic salary. However, it may not be less than the minimum subsistence figure.

The invalidity allowance shall be subject to contributions to the pension scheme, calculated on the basis of that allowance.

Where the invalidity arises from an accident in the course of or in connection with the performance of an official's duties, from an occupational disease, from a public-spirited act or from risking his life to save another human being, the invalidity allowance may not be less than 120 % of the minimum subsistence figure. In such cases, moreover, contributions to the pension scheme shall be paid in full from the budget of the institution or body referred to in Article 1b.";

71) Article 79 is amended as follows:

(a) in the first and second paragraphs, the word "widow" is replaced by "surviving spouse" and the words "her husband" are replaced by "the deceased";

(b) in the first paragraph the words "of the retirement or invalidity pension" are replaced by "of the retirement pension or invalidity allowance";

(c) in the third paragraph the words "the second paragraph of Article 78" are replaced by "the fifth paragraph of Article 78";

72) Article 79a is deleted;

73) Article 80 is amended as follows:

(a) the first paragraph is replaced by the following:"Where an official or person entitled to a retirement pension or invalidity allowance dies leaving no spouse entitled to a survivor's pension, the children dependent on the deceased within the meaning of Article 2 of Annex VII at the time of his death shall be entitled to orphans' pension in accordance with Article 21 of Annex VIII.";

(b) in the third paragraph, the words "a retirement or invalidity pension" are replaced by "a retirement pension or invalidity allowance";

(c) the fourth paragraph is replaced by the following:"For persons treated as dependent children within the meaning of Article 2(4) of Annex VII, the orphan's pension may not exceed an amount equal to twice the dependent child allowance.";

(d) the following paragraph is inserted after the fourth paragraph:"Where a child has been adopted, the death of the natural parent who has been replaced by the adoptive parent shall not give rise to payment of an orphan's pension.";

(e) the existing fifth paragraph becomes the sixth paragraph and in this new sixth paragraph the number "60" is replaced by "63";

(f) the following paragraph is added:"Persons in receipt of an orphan's pension may not receive more than one such pension from the Community. Where a surviving child has entitlement to more than one Community pension, he shall receive the pension providing the higher or highest amount.";

74) in Article 81, the first paragraph is replaced by the following:"A person entitled to a retirement pension or to an invalidity allowance, or to a survivor's pension shall be entitled, under the conditions laid down in Annex VII, to the family allowances specified in Article 67; the household allowance shall be calculated by reference to the pension or the allowance of the recipient. These allowances shall be paid to recipients of a survivor's pension only in respect of the children dependent on the deceased official or former official at the time of death.";

75) Article 81a is amended as follows:

(a) paragraph 1 is amended as follows:

(i) in point (c), the words "invalidity pension" are replaced by "invalidity allowance";

(ii) in point (d), the number "60" is replaced by "63";

(b) in paragraph 3, second subparagraph, the words "third and fourth" are replaced by "and third";

76) Article 82 is replaced by the following:

"Article 82

No correction coefficient shall be applicable to pensions.

Pensions expressed in euro shall be paid in one of the currencies referred to in Article 45 of Annex VIII to the Staff Regulations.

77) Article 83 is amended as follows:

(a) in paragraph 2, the figure "8,25 %" is replaced by "9,25 %" and the following sentence is added:"The contribution shall be adjusted in accordance with the rules laid down in Annex XII.";

(b) paragraph 4 is deleted;

78) the following Article is inserted:

"Article 83a

79) In Article 85 the following paragraph is added:"The request for recovery must be made no later than five years from the date on which the sum was paid. Where the Appointing Authority is able to establish that the recipient deliberately misled the administration with a view to obtaining the sum concerned, the request for recovery shall not be invalidated even if this period has elapsed.";

80) In Article 85a(2), sixth indent, the words "invalidity pensions" are replaced by "invalidity allowances";

81) Article 86(2) and (3) are replaced by the following:

"2. Where the Appointing Authority or OLAF becomes aware of evidence of failure within the meaning of paragraph 1, they may launch administrative investigations to verify whether such failure has occurred.

82) Articles 87, 88 and 89 are deleted;

83) Article 90(3) is deleted;

84) the following Articles are inserted:

"Article 90a

Any person to whom these Staff Regulations apply may submit to the Director of OLAF a request within the meaning of Article 90(1), asking the Director to take a decision relating to him in connection with investigations by OLAF. Such person may also submit to the Director of OLAF a complaint within the meaning of Article 90(2) against an act adversely affecting him in connection with investigations by OLAF.

Article 90b

Any person to whom these Staff Regulations apply may submit to the European Data Protection Supervisor a request or a complaint within the meaning of Article 90(1) and (2), within his sphere of competence.

Article 90c

Requests and complaints relating to the areas to which Article 2(2) has been applied shall be lodged with the Appointing Authority entrusted with the exercise of powers.";

85) Article 91a is replaced by the following:

"Article 91a

Any appeals relating to the areas in which Article 2(2) has been applied shall be made against the institution to which the Appointing Authority entrusted with the exercise of powers is answerable.";

86) Articles 92, 93 and 94 are replaced by the following:

"Article 92

This Title lays down the special provisions applicable to officials of the Communities who occupy posts paid from appropriations in the research and investment budget and classified in accordance with Annex I, point A.

Article 93

Special allowances may be granted to certain officials covered by Article 92 to compensate for particularly arduous working conditions.

The Council shall, on a proposal from the Commission, determine the rates and conditions of such special allowances and the staff who shall receive them.

Article 94

By way of derogation from the second paragraph of Article 56a and the second paragraph of Article 56b, and only in exceptional cases because of the requirements of the service, safety regulations or national or international obligations, the Appointing Authority shall designate the officials covered by Article 92 who shall be entitled to benefit from the provisions of these Articles.";

87) Articles 95, 96, 97, 98, 99, 100, 101, 102, 106 and 107 are deleted;

88) the following Article is inserted:

"Article 107a

Transitional provisions are set out in Annex XIII.";

89) Article 110 is replaced by the following:

"Article 110

90) Annex I is replaced by the following:

"ANNEX I

A. Types of posts in each function group, as provided for in Article 5(3)

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B. Multiplication rates for guiding average career equivalence

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91) Annex II is amended as follows:

(a) Article 1 is amended as follows:

(i) in the second paragraph, the following sentence is inserted after the first sentence:

"However, the institution may decide that the conditions for election are to be determined in accordance with the preference of the staff of the institution as expressed in a referendum.";

(ii) In the fourth paragraph, the words "all categories of officials and of all services" are replaced by "both function groups";

(b) in Article 3a, where they occur in the first and fourth paragraphs, the words "the third subparagraph of Article 2" are replaced by "Article 2(2)";

(c) Section 3 entitled "Disciplinary Board" and including Articles 4, 5 and 6 are deleted;

(d) Section 4 is renumbered "Section 3" and "Section 5" is renumbered "Section 4";

(e) Article 10 is replaced by the following:

"Article 10

Members of the Report Committee shall be appointed each year by the Appointing Authority and the Staff Committee, each appointing the same number from among officials of the institution in function group AD. The Committee shall elect its chairman. Members of the Joint Committee shall not be members of the Reports Committee.

Where the Report Committee is called upon to make a recommendation concerning an official whose immediate superior is a member of the Committee, that member shall not take part in the consideration of his case.";

(f) the following section is added:

"Section 5

Joint Advisory Committee for professional incompetence

Article 12

The Joint Advisory Committee for professional incompetence shall comprise a chairman and at least two members, who shall be officials of grade AD 14 at least. The chairman and the members shall be appointed for a period of three years. Half of the members shall be designated by the Staff Committee and half by the Appointing Authority. The chairman shall be appointed by the Appointing Authority from a list of candidates drawn up in concertation with the Staff Committee.

When the case concerns an official in grade AD 14 or lower, the Joint Advisory Committee shall include two further members from the same function group and of the same grade as the official in question, designated in the same way as the permanent members.

Where the Joint Advisory Committee is called upon to examine the case of a senior management official within the meaning of Article 29(2) of the Staff Regulations, a special ad hoc Joint Advisory Committee shall be set up, comprising two members appointed by the Staff Committee and two members appointed by the Appointing Authority, who shall be of a grade at least equal to that of the official concerned.

The Appointing Authority and the Staff Committee shall agree on an ad hoc procedure to designate the further members referred to in the second paragraph who shall sit for cases involving an official posted to a country outside the Union or a member of the contract staff.";

92) Annex III is amended as follows:

(a) Article 1(1) is amended as follows:

(i) the second subparagraph is amended as follows:

(A) in point (c), the words "and the function group and grade offered;" are added;

(B) in point (d), the words "in accordance with Article 5(3) of the Staff Regulations," are inserted before "the diplomas";

(ii) in the third subparagraph, the words "the third subparagraph of Article 2" are replaced by "Article 2(2)";

(b) Article 3 is amended as follows:

(i) the first subparagraph is replaced by the following:"The Selection Board shall consist of a chairman designated by the Appointing Authority and of members designated by the Appointing Authority and the Staff Committee, each designating the same number.";

(ii) in the second subparagraph, the words "the third subparagraph of Article 2" are replaced by "Article 2(2)";

(iii) in the fourth paragraph, the words "function group and" are inserted after "whose";

(iv) the following paragraph is added:"If a selection board consists of more than four members, it shall comprise at least two members of each gender";

(c) the following Article is added:

"Article 7

(a) organise, at the request of individual institutions, open competitions;

(b) provide, at the request of individual institutions, technical support for internal competitions organised by them;

(c) determine the contents of all examinations organised by the institutions in order to ensure that the requirements of Article 45a(1)(c) of the Staff Regulations are met in a harmonised and consistent manner;

(d) assume general responsibility for the definition and organisation of the assessment of linguistic ability in order to ensure that the requirements of Article 45(2) of the Staff Regulations are met in a harmonised and consistent manner.

93) The sole Article of Annex IV is amended as follows:

(a) in paragraphs 1 and 1a, the number "60" is replaced by "63";

(b) paragraph 1a changes its place, becomes paragraph 4 and the first subparagraph is replaced by the following:

"4. During the period of entitlement to the allowance, and for the first six months thereafter, the official referred to in Articles 41 and 50 of the Staff Regulations shall be entitled, in respect of himself and persons covered by his insurance, to benefits under the sickness insurance scheme provided for in Article 72 of the Staff Regulations, on condition that the official pays the appropriate contribution calculated by reference, as the case may be, either to his basic salary or to the percentage thereof specified in paragraph 1 of this Article and that he is not gainfully employed";

94) Annex IVa is replaced by the following:

"ANNEX IVa

PART-TIME WORK

Article 1

The request for authorisation to work part time shall be submitted by the official through the official's immediate superior at least two months before the requested date, except in duly justified urgent cases.

Authorisation may be granted for a minimum of one month and a maximum of three years, without prejudice to the cases referred to in Article 15 and Article 55a(2)(e).

The authorisation may be renewed on the same terms. Applications for renewal shall be made by the official concerned at least two months before expiry of the period for which the authorisation was granted. Part-time work may not be less than half the normal working time.

A period of part-time work shall start on the first day of a month, except in duly justified cases.

Article 2

The Appointing Authority may, at the request of the official concerned, withdraw the authorisation before expiry of the period for which it is granted. The date of withdrawal may not be more than two months after the date proposed by the official or four months after that date if the part-time work was authorised for more than one year.

The Appointing Authority may, in exceptional cases and in the interests of the service, withdraw the authorisation before the expiry of a period for which it is granted, giving the official two months' notice.

Article 3

An official shall be entitled, during the period for which part-time work is authorised, to a percentage of his remuneration corresponding to the percentage of the normal time worked. However, the percentage shall not be applied to the dependent child allowance, the basic amount of the household allowance or the education allowance.

Contributions to the sickness insurance scheme shall be calculated by reference to the basic salary payable to an official working full time. Contributions to the pension scheme shall be calculated by reference to the basic salary received by an official working part time. The official may also request that contributions to the pension scheme be calculated by reference to the basic salary payable to an official working full time, in accordance with Article 83 of the Staff Regulations. Acquired pension rights, for the purposes of Articles 2, 3 and 5 of Annex VIII, shall be calculated in proportion to the percentage of contributions paid.

During the period of part-time work, the official may not work overtime or engage in any gainful activity, other than an activity in accordance with Article 15 of the Staff Regulations.

Article 4

Notwithstanding the first sentence of the first paragraph of Article 3, officials aged over 55 authorised to work half time in preparation for retirement shall receive a reduced basic salary equal to the higher of the two amounts obtained by applying the following percentages to the full-time basic salary:

(a) either 60 %;

(b) or the percentage corresponding to years of service within the meaning of Articles 2, 3, 4, 5, 9 and 9a of Annex VIII at the beginning of the period of half-time work, plus 10 %.

Officials who make an application under this Article shall be required, when they cease to work half-time, either to retire or to repay the amount exceeding 50 % of the basic salary received during the period of half-time work.

Article 5

The Appointing Authority may lay down detailed rules for the application of these provisions.";

95) Annex V is amended as follows:

(a) Article 6 is amended as follows:

(i) the first paragraph is amended as follows:

(A) in the seventh indent, the words "birth or" are deleted;

(B) the following indents are inserted after the existing seventh indent:

"- birth of a child: 10 days, to be taken during the fourteen weeks following birth,

• death of the wife during maternity leave: a number of days corresponding to the remaining maternity leave; if the deceased wife is not an official, the remaining maternity leave is determined by applying the provisions of Article 58 of the Staff Regulations, by analogy.";

(C) the following indent is inserted after the existing eighth indent:

"- very serious illness of a child, as certified by a doctor, or hospitalisation of a child aged 12 or under: up to five days;";

(D) the following indents are inserted after the existing ninth indent:

"- adoption of a child: 20 weeks, rising to 24 weeks in the case of the adoption of a disabled child:

Every adopted child shall confer entitlement to only one period of special leave, which may be shared between the adoptive parents if both are officials. It shall be granted only if the official's spouse engages in a gainful activity at least half-time. If the spouse works outside the institutions of the Communities and benefits from comparable leave, a corresponding number of days shall be deducted from the official's entitlement.

The Appointing Authority may, in case of necessity, grant additional special leave in cases where the national legislation of the country in which the adoption procedure takes place and which is not the country of employment of the adopting official requires a stay of one or both adoptive parents.

• Special leave of 10 days shall be granted if the official does not benefit from the full special leave of 20 or 24 weeks by reason of the first sentence of this indent; this additional special leave shall be granted only once for each adopted child.";

(ii) in the second paragraph the words "third paragraph of Article 24 of the Staff Regulations" are replaced by "Article 24a of the Staff Regulations.";

(iii) the following paragraph is added:

"For the purposes of this Article, the unmarried partner of an official shall be treated as the spouse where the first three conditions in Article 1(2)(c) of Annex VII are met.";

(b) Article 7 is amended as follows:

(i) the second and third paragraphs are deleted;

(ii) the existing fifth paragraph is replaced by the following:

"The preceding provisions shall apply to officials whose place of employment is within the territories of the Member States. If the place of employment is outside these territories, the travelling time shall be fixed by special decision taking into account particular needs.";

96) in Annex VI, in Articles 1 and 3, the words "categories C and D" are replaced by "grade AST 1 to AST 4";

97) Annex VII is amended as follows:

(a) Article 1 is amended as follows:

(i) paragraph 1 is replaced by the following:

"1. The household allowance shall be set at a basic amount of EUR 149,39, plus 2 % of an official's basic salary.";

(ii) in paragraph 2, point (c) becomes (d) and a new point is inserted as follows:

"(c) an official who is registered as a stable non-marital partner, provided that:

(i) the couple produces a legal document recognised as such by a Member State, or any competent authority of a Member State, acknowledging their status as non-marital partners,

(ii) neither partner is in a marital relationship or in another non-marital partnership,

(iii) the partners are not related in any of the following ways: parent, child, grandparent, grandchild, brother, sister, aunt, uncle, nephew, niece, son-in-law, daughter-in-law;

(iv) the couple has no access to legal marriage in a Member State; a couple shall be considered to have access to legal marriage for the purposes of this point only where the members of the couple meet all the conditions laid down by the legislation of a Member State permitting marriage of such a couple";

(iii) in new paragraph 2(d), the words "laid down in (a) and (b)" are replaced by "laid down in (a), (b) and (c)";

(iv) in paragraph 3, first sentence, the words "the third step of grade C 3" are replaced by "the second step of grade 3";

(b) Article 2 is amended as follows:

(i) in paragraph 1 the figure "EUR 247,86" is replaced by "EUR 326,44";

(ii) in paragraph 2, the following subparagraph is added:

"Any child whom the official has a responsibility to maintain under a judicial decision based on Member States' legislation on the protection of minors shall be treated as a dependant child.";

(c) Article 3 is amended as follows:

(i) the existing text of the Article becomes paragraph 1 and is numbered accordingly;

(ii) in new paragraph 1, the first subparagraph is replaced by the following:

"1. Subject to the conditions laid down in the general implementing provisions, an official shall receive an education allowance equal to the actual education costs incurred by him up to a maximum of EUR 221,50 per month for each dependent child, within the meaning of Article 2(2) of this Annex, who is at least five years old and in regular full-time attendance at a primary or secondary school which charges fees or at an establishment of higher education. The requirement of attendance at a school which charges fees shall not apply to the reimbursement of the cost of school transport.";

(iii) the third subparagraph is amended as follows:

(A) the first sentence is replaced by the following:

"The allowance paid shall be subject to a ceiling of twice the maximum prescribed in the first subparagraph for:";

(B) in the second indent, the following is added:

"or where the child attends a higher education establishment in a country other than that of the official's place of employment.";

(C) the following indent is added after the second indent:

"- in the same condition as in the foregoing two indents, persons entitled to the allowance who are not in active service, taking account of the place of residence instead of the place of employment.";

(iv) a new subparagraph is inserted after the third subparagraph as follows:

"The requirement of attendance at a school that charges fees shall not apply to payments under the third subparagraph.";

(v) the following paragraph is added:

"2. For each dependent child within the meaning of Article 2(2) of this Annex who is less than five years old or is not yet in regular full-time attendance at a primary or secondary school, the amount of this allowance is fixed at EUR 79,74 a month. The first sentence of the last subparagraph of paragraph 1 shall apply.";

(d) Sections 2a and 2b including Articles 4a and 4b are deleted;

(e) Article 5(1) is amended as follows:

(i) the first subparagraph is replaced by the following:

"1. 'An installation allowance equal to two months' basic salary in the case of an official who is entitled to the household allowance, and equal to one month's basic salary in other cases shall be paid to an established official who furnishes evidence that a change in the place of residence was required in order to satisfy the requirements of Article 20 of the Staff Regulations.";

(ii) in the second subparagraph, the words "or other servants" are inserted after "husband and wife who are officials" and the word "settlement" is replaced by "installation";

(f) Article 6(1) is amended as follows:

(i) the first subparagraph is amended as follows:

(A) in the first sentence, the words "who satisfies the requirements of Article 5(1)" are replaced by "who provides evidence of a change of residence";

(B) in the second sentence, the words "or other servants" are inserted after "husband and wife who are officials";

(g) Article 7(2) is replaced by the following:

"1. The basis for calculating the reimbursement shall be the first-class rail fare on the shortest and most economical habitual route by rail between the place of employment and the place of recruitment or origin.

Where the route referred to in the first subparagraph exceeds 500 km and in cases where the usual route includes a sea crossing, the official concerned shall be entitled, on production of the tickets, to reimbursement of the cost of travel by air in business class or equivalent. Where a means of transport other than those mentioned above is used, calculation of reimbursement shall be based on the cost by rail, excluding sleeper accommodation. Where calculation on this basis is not possible, the terms of reimbursement shall be determined by special decision of the Appointing Authority.";

(h) Article 8 is amended as follows:

(i) paragraphs 1 and 2 are replaced by the following:

"1. Officials shall be entitled to be paid in each calendar year a sum equivalent to the cost of travel from the place of employment to the place of origin as defined in Article 7 for themselves and, if they are entitled to the household allowance, for the spouse and dependants within the meaning of Article 2.

Where a husband and wife are both officials of the Communities, each has the right in respect of himself or herself and in respect of dependants to the flat-rate payment of travelling expenses, in accordance with the above provisions; each dependant shall be entitled to one payment only. The payment in respect of dependent children is fixed at the request of the husband or wife, on the basis of the place of origin of one or other of them.

Where an official marries during a given year and thereby becomes entitled to the household allowance, the travel expenses payable for the spouse shall be calculated in proportion to the period from the date of the marriage to the end of the year.

Any alteration to the basis of calculation which may arise from changes in family status after the date of payment of the sums in question shall not render the official concerned liable to make repayment.

Travel expenses for children aged two to ten years shall be calculated on the basis of half of the kilometric allowance and half the flat-rate supplement, the children being deemed for the purposes of calculation to have completed their second or tenth year on 1 January of the current year.

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

EUR 166 if the distance by train between the place of employment and the place of origin is between 725 km and 1450 km,

EUR 331,99 if the distance by train between the place of employment and the place of origin is greater than 1450 km,

The above kilometric allowances and flat-rate supplements shall be adapted every year in the same proportion as remuneration.";

(ii) paragraph 4 is replaced by the following:

"4. The preceding provisions shall apply to officials whose place of employment is within the territories of the Member States. Officials whose place of employment is outside the territory of the Member States shall be entitled for themselves and, if they are entitled to receive the household allowance, for their spouse and other dependants within the meaning of Article 2, in each calendar year, to repayment of travel expenses to their place of origin, or to repayment of travel expenses to another place not exceeding the expense of travel to the place of origin. However, if the spouse and the persons referred to in Article 2(2) do not live with the official at the place of employment, they shall be entitled each calendar year to reimbursement of travel expenses from the place of origin to the place of employment or to another place not exceeding the cost of the former journey.

These travel expenses shall be reimbursed in the form of a flat-rate payment based on the cost of air travel in the class immediately superior to economy class.";

(i) Article 10 is amended as follows:

(i) paragraph 1 is replaced by the following:

"1. Where an official furnishes evidence that a change in the place of residence is required in order to comply with Article 20 of the Staff Regulations, such official shall be entitled for a period specified in paragraph 2 of this Article to a subsistence allowance per calendar day as follows:

Official entitled to receive household allowance: EUR 34,31.

Official not entitled to receive household allowance: EUR 27,67.

The above scale shall be reviewed each time remuneration are revised pursuant to Article 65 of the Staff Regulations.";

(ii) in paragraph 2, second subparagraph, the words "or other servants" are inserted after "husband and wife who are officials";

(iii) paragraph 3 is deleted;

(j) Article 11 is amended as follows:

(i) in paragraph 1, the second subparagraph is deleted;

(ii) in paragraph 2, the first sentence is replaced by the following:

"The travel order shall state the probable duration of the mission, on the basis of which shall be calculated any advance which the official may draw against the daily subsistence allowance.";

(iii) the following paragraph is added:

"3. Save in special cases, to be determined by special decision and in particular where an official is called back from leave, the reimbursement of mission expenses shall be limited to the cost of the most economical journey between the place of employment and the place of mission which does not require the official on mission to extend his stay significantly.";

(k) Articles 12 and 13 are replaced by the following:

"Article 12

Travel expenses for missions carried out by rail shall be reimbursed on presentation of supporting documents on the basis of the cost of transport in first class by the shortest route between the place of employment and the place of the mission.

Officials shall be authorised to travel by air if the outward and return journeys by rail would total at least 800 kilometres.

The Appointing Authority shall authorise in each case and on the basis of the length and cost of the journey the classes to be used and the cabin supplements which may be reimbursed.

Travel costs shall be reimbursed in the form of a lump sum based on the rail cost, in accordance with point 1; no other supplement shall be paid.

In the case of an official travelling on mission in special circumstances, however, the Appointing Authority may decide to grant that official an allowance per kilometre covered instead of the reimbursement of travel costs provided for above, if the use of public transport presents clear disadvantages.

Article 13

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Where an official on mission is provided with a meal or accommodation free of charge or reimbursed by one of the institutions of the Communities, an administration or outside body, this must be declared. A corresponding deduction will then be made.

(b) The scale for missions in countries outside the European territory of the Member States shall be fixed and adjusted periodically by the Appointing Authority.

(l) the following Article is inserted:

"Article 13a

Detailed rules for the application of Articles 11, 12 and 13 of this Annex shall be laid down by the various institutions under the general implementing provisions.";

(m) Articles 14a and 14b are deleted;

(n) in Article 15, first paragraph, the words "officials in Grades A1 and A2" are replaced by "senior management staff within the meaning of Article 29(2) of the Staff Regulations";

(o) Article 17 is amended as follows:

(i) paragraphs 2 and 3 are replaced by the following:

"(2) In the conditions laid down in rules fixed by the Community institutions by common consent after consulting the Staff Regulations Committee, officials may regularly have part of their remuneration transferred by their institution of employment to another Member State.

Under the preceding provision the following may be transferred, separately or in combination:

(a) for children attending an education establishment in another Member State, a maximum amount per dependent child equal to the amount of the education allowance actually received for that child;

(b) on production of valid supporting documents, regular payments to all other persons residing in the relevant Member State to whom the official provides evidence of having an obligation by virtue of a decision of the courts or the competent administrative authority.

The transfers referred to in point (b) may not exceed 5 % of the official's basic salary.

(ii) the following paragraph is added:

"4. Apart from the transfers referred to in paragraphs 1 to 3, an official may request a regular transfer to another Member State at the monthly exchange rate, without application of any coefficient. This transfer may not exceed 25 % of the official's basic salary.";

98) Annex VIII is amended as follows:

(a) in Article 2, second paragraph, the number "35" is replaced by "the number necessary to achieve the maximum pension, within the meaning of the second paragraph of Article 77 of the Staff Regulations";

(b) Article 3 is replaced by the following:

"Article 3

Provided that the servants concerned have paid their shares of the pension contributions in respect of the periods of service concerned, the following shall be taken into account for the purpose of calculating years of pensionable service within the meaning of Article 2:

(a) the period of service as an official of one of the institutions in one of the administrative statuses set out in Article 35(a), (b), (c), and (e) and (f) of the Staff Regulations. However, officials covered by Article 40 of the Staff Regulations shall be subject to the conditions laid down in the last sentence of the second subparagraph of paragraph 3 thereof;

(b) periods of entitlement to the allowance under Articles 41 and 50 of the Staff Regulations, up to a maximum of five years.

(c) periods of entitlement to an invalidity allowance;

(d) periods of service in any other capacity in accordance with the Conditions of Employment of other servants. However, where members of the contract staff within the meaning of those Conditions of Employment become officials, the years of pensionable service they have acquired as members of the contract staff shall, up to the number of years of actual service, entitle them to a number of years of pensionable service as officials calculated on the basis of the ratio between the last basic salary received as a member of the contract staff and the first basic salary received as an official. The surplus contributions, if any, corresponding to the difference between the number of years of pensionable service calculated and the number of years of actual service, shall be reimbursed to the person concerned on the basis on the last basic salary received as a member of the contract staff. This provision shall, with the necessary changes, apply where officials become members of the contract staff.";

(c) Article 4 is replaced by the following:

"Article 4

(a) repayment of the severance grant paid under Article 12, plus compound interest at a rate of 3,5 % per annum. Where Article 42 or 112 of the Conditions of Employment of other servants has been applied in the case of the official concerned, the latter shall also be required to repay the amount paid under that Article, plus compound interest at the abovementioned rate;

(b) having an amount set aside for this purpose, before calculation of the credited contribution years provided for in Article 11(2) and providing the official has requested and obtained the application of that Article after resuming service, equal to the part of the amount transferred to the Community pension scheme that corresponds to the actuarial equivalent calculated and transferred to the scheme of origin pursuant to Article 11(1) or Article 12 (1) (b), plus compound interest at a rate of 3,5 % per annum.

Where Article 42 or 112 of the Conditions of Employment of other servants has been applied in the case of the official concerned, the calculation of the amount to be set aside shall also take account of the amount paid under those Articles, plus compound interest at 3,5 % per annum.

Where the amount transferred to the Community scheme is insufficient to make up the pension rights covering the previous period of employment in full, the official shall be authorised, on request, to make the amount up to that defined at point (b) of the first paragraph.

(d) Article 5 is amended as follows:

(i) the first paragraph is replaced by the following:

"Notwithstanding the provisions of Article 2 of this Annex, officials who remain in service after the age of 63 shall be entitled to an increase of their pension equal to 2 % of the basic salary taken into account for the calculation of their pension per year worked after that age, with the proviso that the total of their pension plus the increase does not exceed 70 % of their final basic salary as referred to in the second or third paragraph, as the case may be, of Article 77 of the Staff Regulations.";

(ii) in the second paragraph, the number "60" is replaced by "63"

(e) in Article 6, the words "Grade D 4, step one" are replaced by "at the first step of grade 1";

(f) Article 7 is deleted;

(g) Article 8 is replaced by the following:

"Article 8

Actuarial equivalent of the retirement pension means the capital value of the benefits accruing to the official by reference to the mortality table referred to in Article 9 of Annex XII and subject to 3,5 % interest per annum, which rate may be revised in accordance with the rules laid down in Article 10 of Annex XII.";

(h) Article 9 is replaced by the following:

"Article 9

(a) be deferred until the first day of the calendar month following that in which he reaches the age of 63; or

(b) be paid immediately, provided that he is not less than 55 years of age. In this case, the retirement pension shall be reduced by an amount calculated by reference to the official's age when he starts to draw his pension.

The pension shall be reduced by 3,5 % for every year before the one in which officials would become entitled to a retirement pension within the meaning of Article 77 of the Staff Regulations. If between the age at which entitlement to a retirement pension is acquired within the meaning of Article 77 of the Staff Regulations and the age of the person concerned at the time, the difference exceeds an exact number of years, an extra year shall be added to the reduction.

(i) the following Article is inserted:

"Article 9a

For the purposes of determining the reduced pension of officials who have acquired pension rights exceeding the equivalent of 70 % of their final basic salary and who request immediate payment of their retirement pension in accordance with Article 9, the reduction under Article 9 shall be applied to a notional figure corresponding to the years of pensionable service rather than to an amount capped at 70 % of the final basic salary. In no case, however, may the reduced pension thus calculated exceed 70 % of the last basic salary within the meaning of Article 77 of the Staff Regulations.";

(j) Article 11 is amended as follows:

(i) in paragraph 1, the words, "updated to the actual date of transfer," are inserted after "of his retirement pension rights";

(ii) in paragraph 2:

(A) in the first subparagraph, the words:

"shall be entitled upon establishment to have paid to the Communities either the actuarial equivalent or the flat-rate redemption value of retirement pension rights acquired by virtue of such services or activities.";

are replaced by:

"shall be entitled, after establishment but before becoming eligible for payment of a retirement pension within the meaning of Article 77 of the Staff Regulations, to have paid to the Communities the capital value, updated to the date of the actual transfer, of pension rights acquired by virtue of such service or activities.";

(B) the second subparagraph is replaced by the following:"In such case the institution in which the official serves shall, taking into account the official's basic salary, age and exchange rate at the date of application for a transfer, determine by means of general implementing provisions the number of years of pensionable service with which he shall be credited under the Community pension scheme in respect of the former period of service, on the basis of the capital transferred, after deducting an amount representing capital appreciation between the date of the application for a transfer and the actual date of the transfer.";

(C) the following subparagraph is added:"Officials may make use of this arrangement once only for each Member State and pension fund concerned";

(k) Article 12 is replaced by the following:

"Article 12

(a) where he has completed less than one year's service and has not made use of the arrangement laid down in Article 11(2), to payment of a severance grant equal to three times the amounts withheld from his basic salary in respect of his pension contributions, after deduction of any amounts paid under Articles 42 and 112 of the Conditions of Employment of other servants;

(b) in other cases, to the benefits provided under Article 11(1) or to the payment of the actuarial equivalent of such benefits to a private insurance company or pension fund of their choice, on condition such company or fund guarantees that:

(i) the capital will not be repaid;

(ii) a monthly income will be paid from age 60 at the earliest, and age 65 at the latest;

(iii) provisions are included for reversion or survivors' pensions;

(iv) transfer to another insurance company or other fund will be authorised only if such fund fulfils the conditions laid down in points (i), (ii) and (iii).

(l) Article 12a is deleted;

(m) the title of Chapter 3 is replaced by: "Invalidity allowance";

(n) Article 13 is amended as follows:

(i) the first subparagraph is numbered and becomes paragraph 1 and the words "invalidity pension" are replaced by "invalidity allowance";

(ii) the second subparagraph is deleted and replaced by the following paragraph:

"2. Persons in receipt of an invalidity allowance may not engage in gainful employment without the prior authorisation of the Appointing Authority. Any income from such gainful employment which, in combination with the invalidity allowance, exceeds the final total remuneration received while in active service as determined on the basis of the salary scale in force on the first day of the month in which the allowance is to be paid shall be deducted from the invalidity allowance.

The recipient of the allowance shall be required to provide on request any written proof which may be requested and to notify his or her institution of any factor that may affect entitlement to the allowance.";

(o) Article 14 is amended as follows:

(i) where they appear in the text, the words "invalidity pension" are replaced by "invalidity allowance" and the word "pension" is replaced by "allowance";

(ii) in the second paragraph, the words "in that case the provisions of Article 16 of Annex VIII shall apply" are deleted;

(p) in Article 15, the word "pension" is replaced by "allowance" and the number "60" is replaced by "63";

(q) Article 16 is deleted;

(r) Article 17 is amended as follows:

(i) where they appear in the text, the words "his widow" are replaced by "the surviving spouse";

(ii) in the first paragraph, the words "provided that she has been married to him" are replaced by "provided that the couple were married" and the words "widow's pension" are replaced by "survivor's pension";

(s) Article 17a is amended as follows:

(i) in the first and second paragraphs, where they appear in the text, the words "widow's pension" are replaced by "survivor's pension";

(ii) in the first and third paragraphs, where they appear in the text, the words "the widow" are replaced by "the surviving spouse";

(iii) the first paragraph is further amended as follows:

(A) the words: "provided that she had been married to him for at least one year when he left the service of an institution";

are replaced by:

"provided that the couple were already married before the official left the service of an institution and that the marriage had lasted at least one year";

(B) the words "her husband" are replaced by "the spouse";

(t) Article 18 is replaced by the following:

"Article 18

Where a former official was in receipt of retirement pension the surviving spouse shall be entitled, provided that the couple were already married before the official left the service of an institution and that the marriage had lasted at least one year, and subject to the provisions of Article 22, to a survivor's pension equal to 60 % of the retirement pension which he was receiving at the time of his death. The minimum survivor's pension shall be 35 % of the last basic salary; the amount of the survivor's pension shall in no case, however, exceed the amount of the retirement pension which the spouse was receiving at the time of death.

The duration of the marriage shall not be taken into account if there are one or more children of a marriage contracted by the official before he left the service, provided that the surviving spouse maintains or has maintained those children.";

(u) Article 18a is amended as follows:

(i) where they appear in the text, the words "the widow" are replaced by "the surviving spouse" and the number "60" is replaced by "63";

(ii) the first paragraph is amended as follows:

(a) where they appear in the text, the words "provided that she had been married to him for at least one year when he left the service of an institution"

are replaced by

"provided that the couple were already married before the official left the service of an institution and that the marriage had lasted at least one year.";

(b) where they appear in the text, the words "widow's pension" are replaced by "survivor's pension";

(c) where they appear in the text, the words "her husband" is replaced by "the spouse";

(v) Article 19 is replaced by the following:

"Article 19

Where a former official was in receipt of invalidity allowance the surviving spouse shall be entitled, subject to the provisions of Article 22 of this Annex, provided that the couple were married when the official became eligible for the allowance, to a survivor's pension equal to 60 % of the invalidity allowance which the spouse was receiving at the time of death.

The minimum survivor's pension shall be 35 % of the final basic salary; the amount of the survivor's pension shall in no case, however, exceed the amount of the invalidity allowance which the spouse was receiving at the time of death.";

(w) in Article 21(1), where they appear in the text, the words "the widow" are replaced by "the surviving spouse" and the words "a retirement or invalidity pension" are replaced by "a retirement pension or invalidity allowance";

(x) Article 22 is amended as follows:

(i) in the first paragraph, the words "a widow" are replaced by "a surviving spouse";

(ii) in the third paragraph the word "a retirement or invalidity pension" are replaced by "a retirement pension or invalidity allowance";

(y) Article 24 is amended as follows:

(i) in the first paragraph the words "a retirement or invalidity pension" are replaced by "a retirement pension or invalidity allowance";

(ii) in the second paragraph the following sentence is added:

"Similarly the right to an orphan's pension shall cease if the recipient ceases to be regarded as a dependent child within the meaning of Article 2 of Annex VII.";

(z) in Article 25 the words "a retirement or invalidity pension" are replaced by "a retirement pension or invalidity allowance";

(aa) in Article 26, the words "A widow" are replaced by "A surviving spouse" and the words "She shall be entitled" are replaced by "He or she shall be entitled".

(bb) Article 27 is replaced by the following:

"Article 27

The divorced spouse of an official or a former official shall be entitled to a survivor's pension, as defined in this Chapter, provided that, on the death of the former spouse, he/she can justify entitlement on his/her own account to receive maintenance from him by virtue of a court order or as a result of an officially registered settlement in force between himself/herself and his/her former spouse.

The survivor's pension may not, however, exceed the amount of maintenance paid at the time of death of the former spouse, the amount having been adjusted in accordance with the procedure laid down in Article 82 of the Staff Regulations.

The divorced spouse's entitlement shall cease if he or she remarries before the former spouse dies. Article 26 shall apply in the event of remarriage after the death of the former spouse";

(cc) Article 28 is amended as follows:

(i) in the first paragraph, the words "divorced wife" are replaced by "divorced spouse", the words "divorced wives" are replaced by "divorced spouses" and the words "a widow" are replaced by "a surviving spouse.";

(ii) in the second paragraph, the words "her share, her share" are replaced by "his or her share, that share";

(dd) in Article 29, the words "the divorced wife" are replaced by "the divorced spouse" and the words "to the widow" are replaced by "to the surviving spouse";

(ee) in Article 31, the words "retirement or invalidity pension" are replaced by "retirement pension or invalidity allowance";

(ff) in Article 31a, the following text:

"or under Regulations (EEC, Euratom, ECSC) No 259/68 or (Euratom, ECSC, EEC) No 2530/72 or (ECSC, EEC, Euratom) No 1543/73 or (ECSC, EEC, Euratom) No 2150/82 or (ECSC, EEC, Euratom) No 1679/85";

is replaced by:"or under Regulation (EEC) No 1857/89(2), Regulation (EC, Euratom) No 1746/2002(3), Regulation (EC, Euratom) No 1747/2002(4) or Regulation (EC, Euratom) No 1748/2002(5).";

(gg) in Article 34, the second paragraph is replaced by the following:

"Articles 80 and 81 of the Staff Regulations shall also apply to children born less than 300 days after the death of the official or former official in receipt of a retirement pension or invalidity allowance.";

(hh) in Article 35, the words "of a retirement, invalidity or survivor's pension" are replaced by "of a retirement or survivor's pension or of an invalidity allowance";