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

(ii) in Article 36, the words "and invalidity allowances" are inserted after "Salaries";

(jj) Article 39 is deleted;

(kk) Article 40 is amended as follows:

(i) in the first paragraph, the words "retirement, invalidity, or survivor's or provisional pension" are replaced by "retirement, or survivor's or provisional pension or invalidity allowance";

(ii) the second paragraph is replaced by the following:

"A retirement pension or invalidity allowance shall not be paid concurrently with the salary payable from the general budget of the European Union or by one of the agencies nor with the allowance payable under Articles 41 and 50 of the Staff Regulations. Similarly, they shall be incompatible with any remuneration derived from a post in one of the institutions or agencies.";

(ll) Article 42 is amended as follows:

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

(ii) the words "or allowance" are inserted between "their pension" and "within one year";

(mm) in Article 44, the word "temporarily" is inserted before "deprived" and the words "under Article 86 of the Staff Regulations" are replaced by "under Article 9 of Annex IX";

(nn) in Article 45, the third paragraph is replaced by the following:

"For pensioners residing in the European Union, benefits shall be paid in euro into a bank in the Member State of residence.

For pensioners residing outside the European Union, pensions shall be paid, in euro into a bank in the country of residence. The pension may by way of exception be paid in euro into a bank in the country where the institution has its headquarters, or in foreign currency in the country of residence of the pensioner, converted at the most up-to-date exchange rates used for the implementation of the general budget of the European Union.

This Article shall apply by analogy to the recipients of an invalidity allowance.";

(oo) in Article 46, the words "of a retirement or invalidity pension" are replaced by "of a retirement pension or invalidity allowance";

99) Annex IX is replaced by the following:

"ANNEX IX

DISCIPLINARY PROCEEDINGS

Section 1

General provisions

Article 1

Article 2

Article 3

(a) decide that no case can be made against the official, in which case the official shall be informed accordingly in writing; or

(b) decide, even if there is or appears to have been a failure to comply with obligations, that no disciplinary measure shall be taken and, if appropriate, address a warning to the official; or

(c) in the case of failure to comply with obligations within the meaning of Article 86 of the Staff Regulations:

(i) decide to initiate the disciplinary proceedings provided for in Section 4 of this Annex, or

(ii) decide to initiate disciplinary proceedings before the Disciplinary Board.

Article 4

An official who, for objective reasons, cannot be heard under the provisions of this Annex may be asked to comment in writing or may be represented by a person of his choice.

Section 2

Disciplinary board

Article 5

Article 6

(a) the Appointing Authority shall draw up a list containing, if possible, the names of two officials in each grade in each function group. At the same time, the Staff Committee shall send the Appointing Authority a list drawn up on the same basis;

(b) within ten days of the notification of the report on which the decision to open disciplinary proceedings or the procedure laid down in Article 22 of the Staff Regulations is based, the chairman of the Board, in the presence of the person concerned, shall draw by lot from the abovementioned lists the names of the two Board members, one member being drawn from each list. The chairman may decide that the secretary is to replace him in this procedure. The chairman shall notify the official concerned and the individual members of the Board of its complete composition.

Within the same time limit, Board members may ask to be excused from duty for legitimate reasons and shall withdraw if a conflict of interests exists.

If necessary, the chairman of the Board shall draw new lots to replace the members appointed in accordance with paragraph 4.

Article 7

The Board shall be assisted by a secretary appointed by the Appointing Authority.

Article 8

Section 3

Disciplinary measures

Article 9

(a) a written warning;

(b) a reprimand;

(c) deferment of advancement to a higher step for a period of between one and 23 months;

(d) relegation in step;

(e) temporary downgrading for a period of between 15 days and one year;

(f) downgrading in the same function group;

(g) classification in a lower function group, with or without downgrading;

(h) removal from post and, where appropriate, reduction pro tempore of a pension or withholding, for a fixed period, of an amount from an invalidity allowance; the effects of this measure shall not extend to the official's dependants. In case of such reduction however, the former official's income may not be less than the minimum subsistence figure laid down in Article 6 of Annex VIII, with the addition of any family allowances payable.

Article 10

The severity of the disciplinary penalties imposed shall be commensurate with the seriousness of the misconduct. To determine the seriousness of the misconduct and to decide upon the disciplinary penalty to be imposed, account shall be taken in particular of:

(a) the nature of the misconduct and the circumstances in which it occurred,

(b) the extent to which the misconduct adversely affects the integrity, reputation or interests of the institutions,

(c) the extent to which the misconduct involves intentional actions or negligence,

(d) the motives for the official's misconduct,

(e) the official's grade and seniority,

(f) the degree of the official's personal responsibility,

(g) the level of the official's duties and responsibilities,

(h) whether the misconduct involves repeated action or behaviour,

(i) the conduct of the official throughout the course of his career.

Section 4

Disciplinary proceedings not involving the disciplinary board

Article 11

The Appointing Authority may decide on the penalty of a written warning or reprimand without consulting the Board. The official concerned shall be heard before such action is taken by the Appointing Authority.

Section 5

Disciplinary proceedings before the disciplinary board

Article 12

Article 13

Article 14

If, in the presence of the Chairman of the Board, the official concerned acknowledges misconduct on his part and accepts unreservedly the report referred to in Article 12 of this Annex, the Appointing Authority may, in accordance with the principle of proportionality between the nature of the misconduct and the penalty being considered, withdraw the case from the Board. Where a case is withdrawn from the Board the Chairman shall deliver an opinion on the penalty considered.

Under this procedure the Appointing Authority may, by derogation from Article 11 of this Annex, impose one of the penalties provided for in Article 9(1) (a) to (d) of this Annex.

The official concerned shall be informed before acknowledging his misconduct of the possible consequences of such acknowledgement.

Article 15

Before the first meeting of the Board, the chairman shall give one of its members the task of preparing a general report on the matter and shall inform the other members of the Board accordingly.

Article 16

Article 17

Article 18

After consideration of documents submitted and having regard to any statement made orally or in writing and to the results of any investigation undertaken, the Board shall, by majority vote, deliver a reasoned opinion as to whether the facts complained of are established and as to any penalty to which those facts should give rise. This opinion shall be signed by all the members of the Board. Each member may attach to the opinion a divergent view. The Board shall transmit the opinion to the Appointing Authority and to the official concerned within two months of the date of receipt of the report of the Appointing Authority, provided that this time limit is commensurate with the degree of complexity of the case. Where an investigation has been held at the Board's initiative, the time limit shall be four months, provided that this period is commensurate with the degree of complexity of the case.

Article 19

Article 20

The secretary shall draw up minutes of meetings of the Disciplinary Board. Witnesses shall sign the minutes recording their evidence.

Article 21

Article 22

Section 6

Suspension

Article 23

Article 24

Section 7

Parallel criminal prosecution

Article 25

Where the official is prosecuted for those same acts, a final decision shall be taken only after a final judgment has been handed down by the court hearing the case.

Section 8

Final provisions

Article 26

The decisions referred to under Articles 11, 14, 22 and 23 of this Annex shall be sent for information to OLAF in cases where an investigation was initiated by the Office.

Article 27

An official against whom a disciplinary penalty other than removal from post has been ordered may, after three years in the case of a written warning or reprimand or after six years in the case of any other penalty, submit a request for the deletion from his personal file of all reference to such measure. The Appointing Authority shall decide whether to grant this request.

Article 28

Where new facts supported by relevant evidence come to light, disciplinary proceedings may be reopened by the Appointing Authority on its own initiative or on application by the official concerned.

Article 29

If no case has been made against the official pursuant to Articles 1(3) and 22(2) of this Annex, the official shall be entitled to request that the damage suffered should be made good through suitable publicity for the decision of the Appointing Authority.

Article 30

Without prejudice to Article 2(3), each institution shall, if it sees fit, adopt implementing arrangements for this Annex after consulting its Staff Committee."

100) Annex X is amended as follows:

(a) in Article 2 the second paragraph is replaced by the following:

"The Appointing Authority shall make such transfers by a specific procedure referred to as the 'mobility procedure', for which it shall lay down detailed implementing rules, after consulting the Staff Committee.";

(b) in Article 3 the first sentence is replaced by the following:

"Under the mobility procedure, an official assigned to a third country may, by decision of the Appointing Authority, be reassigned temporarily with his post to the seat of the institution or any other place of employment in the Community; such assignments, which shall not be preceded by a vacancy notice, may not be for more than four years.";

(c) Article 5 is replaced by the following:

"Article 5

(d) in Article 6, the words "five calendar days" are replaced by "three and a half working days";

(e) Article 7 is amended as follows:

(i) in the first paragraph, the words "five calendar days" are replaced by "three and a half working days" and the words "two and a half calendar days" are replaced by "two working days";

(ii) in the second paragraph, the words "20 calendar days" are replaced by "14 working days";

(f) Article 9 is amended as follows:

(i) in paragraph 1, the words "20 consecutive calendar days" are replaced by "14 working days";

(ii) in paragraph 2, the first subparagraph is amended as follows:

(a) the words "calendar days" are replaced by "working days";

(b) the second sentence is deleted;

(g) Article 10(1) is amended as follows:

(i) the sixth subparagraph is amended as follows:

(a) in the fourth indent, the number "8" is replaced by "7";

(b) the following indent is inserted after the fourth indent:

"- 30 % where the value is greater than 7 but not greater than 9,";

(c) in the fifth indent, the number "8" is replaced by "9, but not greater than 11";

(d) the following indent is added:

"- 40 % where the value is greater than 11.";

(ii) the following subparagraphs are added:

"Officials who, in the course of their career, have been assigned to a place considered difficult or very difficult and where the allowance for living conditions corresponds to 30 %, 35 % or 40 % and who accept a transfer to another place where the allowance corresponds to 30 %, 35 % or 40 % shall receive, in addition to the allowance for living conditions for their new place of employment, a supplementary premium of 5 % of the reference amount referred to in the first subparagraph.

That premium shall be granted cumulatively on each assignment of the official to a place of employment considered difficult or very difficult; however, the sum of the allowance for living conditions and the premium may not exceed 45 % of the reference amount referred to in the first subparagraph.";

(h) in Article 13, first paragraph, first sentence, the words "every six months" are replaced by "once a year";

(i) in Article 16, first paragraph, the words "either euro or the currency of the country of employment" are replaced by "euro, in the currency of the country of employment or in the currency in which the expenditure was incurred".

(j) Article 17 is amended as follows:

(i) the first paragraph is amended as follows:

(a) the words "not in furnished accommodation provided by the institution" are replaced by "provided accommodation pursuant to Article 5 or 23 of this Annex and";

(b) [not applicable to the English version]

(ii) in the second paragraph, the words "his actual installation expenses" are replaced by "the other expenses incurred by this change of residence".

(k) Article 18 is amended as follows:

(i) the second and third paragraphs are replaced by the following:

"The official shall also receive the daily allowance provided for in Article 10 of Annex VII, less 50 %, except in cases of force majeure to be determined by the Appointing Authority.";

(ii) [not applicable to the English version].

(l) Article 19 is replaced by the following:

"Article 19

An official who does not have access to a staff car for travel on official business directly connected with the performance of his duties shall receive a mileage allowance for the use of his own car. The amount of the allowance shall be fixed by the Appointing Authority";

(m) in Article 21, the first and second paragraphs are replaced by the following:

"Where an official is obliged to change his place of residence in order to comply with Article 20 of the Staff Regulations on taking up his appointment or on transfer, the institution shall, subject to the conditions laid down by the Appointing Authority and depending on the type of accommodation that can be provided for him at the place of employment, bear the cost of:

(a) moving part or all of his furniture and personal effects from their location at the time to the place of employment and of transporting his personal effects, in the event that unfurnished accommodation is provided;

(b) transporting his personal effects or of storage of his furniture and personal effects in the event that furnished accommodation is provided.";

(n) In Article 23, the words "the level of his duties" are replaced by "his duties.";

(o) Chapter 5, including Article 26, is deleted;

(p) Chapter 6, including Article 27, is deleted.;

101) Annex XI is replaced by the following:

"ANNEX XI

RULES FOR IMPLEMENTING ARTICLES 64 AND 65 OF THE STAFF REGULATIONS

CHAPTER 1

ANNUAL REVIEW OF REMUNERATION PROVIDED FOR IN ARTICLE 65(1) OF THE STAFF REGULATIONS

Section 1

Factors determining annual adjustments

Article 1

For the purposes of the review provided for in Article 65(1) of the Staff Regulations, Eurostat shall draw up every year before the end of October a report on changes in the cost of living in Brussels, the economic parities between Brussels and certain places in the Member States, and changes in the purchasing power of salaries in national civil services in central government.

Eurostat shall draw up an index, based on data provided by the Belgian authorities, to measure changes in the cost of living for officials of the Communities in Brussels. This index (hereinafter the "Brussels International Index") shall take into account the changes between June of the previous year and June of the current year and shall be based on the statistical methodology defined by the Working Group on Article 64 of the Staff Regulations referred to in Article 13.

(a) Eurostat shall, in agreement with national statistical institutes or other appropriate authorities in the Member States, calculate the economic parities which establish the equivalence of purchasing power:

(i) of the salaries of officials of the Communities serving in the capitals of the Member States, except for the Netherlands where The Hague is used instead of Amsterdam, and in certain other places of employment with reference to Brussels,

(ii) of the pensions of officials paid in the Member States with reference to Belgium.

(b) The economic parities shall refer to the month of June each year.

(c) The economic parities shall be calculated in such a way that each basic component can be updated twice per year and checked by a direct survey at least once every five years. Eurostat shall update the economic parities using the most appropriate indices as defined by the Working Group on Article 64 of the Staff Regulations referred to in Article 13.

(d) Outside Belgium and Luxembourg, changes in the cost of living during the reference period shall be measured by the implicit indices. These indices are calculated by multiplying the Brussels International Index by the change in the economic parity.

(a) For the purpose of measuring the percentage change, either upward or downward, in the purchasing power of salaries in the national civil services, Eurostat shall, on the basis of information supplied before the end of September by the national authorities concerned, calculate specific indicators reflecting changes in the real remuneration of civil servants in central government, between the month of July of the previous year and the month of July of the current year. The two should include one twelfth of all annually-paid elements.

The specific indicators shall take two forms:

(i) one indicator for each of the function groups, as defined in the Staff Regulations,

(ii) an average indicator weighted to reflect the number of national civil servants corresponding to each function group.

Each of these indicators shall be established in real gross and real net terms. For the transition from gross to net, account shall be taken of statutory deductions and general taxation factors.

To establish the gross and net indicators for the European Union total, Eurostat shall use a sample composed by the following Member States: Belgium, Germany, Spain, France, Italy, Luxembourg, Netherlands and United Kingdom. The Council, acting on a Commission proposal under Article 65(3) of the Staff Regulations, may adopt a new sample which represents at least 75 % of the European Union GDP and which will apply from the year following its adoption. The results per country shall be weighted in proportion to its national GDP measured using purchasing power parities as shown in the most recent statistics published in accordance with the national accounts definitions in the European System of Accounts currently in force.

(b) At the request of Eurostat, the appropriate national authorities shall supply it with the additional information which it considers necessary in order to draw up a specific indicator accurately measuring changes in the purchasing power of national civil servants.

If, after further consultation of the national authorities concerned, Eurostat finds statistical anomalies in the information obtained or finds it impossible to draw up indicators which measure with statistical accuracy the changes in the real income of civil servants in a given Member State, it shall report to the Commission and provide it with all the material it needs to make an assessment.

(c) Besides the specific indicators, Eurostat shall calculate certain control indicators. One such indicator shall be in the form of data on real per capita emoluments in central government, drawn up in accordance with the national accounts definitions in the European System of Accounts currently in force.

The Eurostat report on the specific indicators shall be accompanied by comments on the differences between these indicators and the above-mentioned control indicators.

Article 2

The Commission shall produce a comprehensive report every three years on the recruitment requirements of the institutions and transmit it to the European Parliament and the Council. On the basis of this report the Commission shall, if necessary, present proposals based on all relevant factors to the Council after consulting the other institutions within the framework of the Staff Regulations.

Section 2

Arrangements for the annual adjustment of remuneration and pensions

Article 3

(a) the net remuneration and net pension without correction coefficient shall be increased or reduced by the annual adjustment referred to above,

(b) the new table of basic salaries shall be drawn up by calculating the gross amount which, after deduction of tax having regard to paragraph 4 and compulsory deductions for social security and pension contributions, corresponds to the net amount,

(c) the conversion of net amounts into gross amounts shall be based on the situation of an unmarried official who does not receive the allowances provided for in the Staff Regulations.

(a) the factor resulting from the previous adjustment, and/or

(b) the rate of adjustment of remuneration referred to in paragraph 2.

(a) to the salaries of officials of the Communities serving in the other Member States and in certain other places of employment,

(b) by derogation from Article 82(1) of the Staff Regulations, to Community pensions paid in the other Member States for the part corresponding to the acquired rights acquired before 1 May 2004,

shall be determined on the basis of the ratios between the corresponding economic parities referred to in Article 1 of this Annex and the exchange rates specified in Article 63 of the Staff Regulations for the relevant countries.

The procedures laid down in Article 8 of this Annex concerning the retrospective application of correction coefficients in places of employment with a high rate of inflation shall apply.

If this retroactive adjustment necessitates the recovery of sums overpaid, such recovery may be spread over a period of not more than twelve months from the date of entry into force of the decision on the next annual adjustment.

CHAPTER 2

INTERMEDIATE ADJUSTMENTS OF REMUNERATION AND PENSIONS (ARTICLE 65(2) OF THE STAFF REGULATIONS)

Article 4

Article 5

If this forecast produces a negative percentage, half of this percentage shall be taken into account in the calculation of the intermediate adjustment.

Article 6

(a) if the sensitivity threshold is reached or exceeded in Brussels (as measured by the Brussels International Index between June and December), the remuneration for all places shall be adjusted following the annual adjustment procedure,

(b) if the sensitivity threshold is not reached in Brussels, only the correction coefficients of places where the change in the cost of living (as measured by the implicit indices between June and December) * has exceeded the threshold shall be adjusted.

Article 7

For the purposes of Article 6 of this Annex:

The amount of the adjustment shall be the Brussels International Index, multiplied, where appropriate, by half of the specific indicator forecast if this is negative.

Correction coefficients shall be the ratio between the relevant economic parity and the exchange rate provided for in Article 63 of the Staff Regulations, multiplied, if the adjustment threshold is not reached for Brussels, by the value of the adjustment.

CHAPTER 3

DATE ON WHICH A CORRECTION COEFFICIENT COMES INTO EFFECT (PLACES OF EMPLOYMENT WITH A HIGH COST-OF-LIVING INCREASE)

Article 8

(a) 16 May for places of employment having an implicit index higher than 6,3 %, and

(b) 1 May for places of employment having an implicit index higher than 12,6 %.

(a) 16 November for places of employment having an implicit index higher than 6,3 %, and

(b) 1 November for places of employment having an implicit index higher than 12,6 %.

CHAPTER 4

CREATION AND WITHDRAWAL OF CORRECTION COEFFICIENTS (ARTICLE 64 OF THE STAFF REGULATIONS)

Article 9

This request should be supported by objective factors revealing an appreciable difference over some years in the cost of living between that place of employment and the capital of the Member State concerned (except for the Netherlands where The Hague is used instead of Amsterdam). If Eurostat confirms that the difference is appreciable (more than 5 %) and sustainable, the Commission should present a proposal to set a correction coefficient for that place.

(a) a request by the appropriate authorities of the Member State concerned, the administration of an institution of the Communities or the representatives of officials of the Communities in a given place of employment showing that the cost of living in that place is no longer significantly different (less than 2 %) than that of the capital of the Member State concerned. This convergence should be sustainable and validated by Eurostat,

(b) the fact that there are no longer any officials and temporary staff of the Communities employed in that place.

CHAPTER 5

EXCEPTION CLAUSE

Article 10

If there is a serious and sudden deterioration in the economic and social situation within the Community, assessed in the light of objective data supplied for this purpose by the Commission, the latter shall submit appropriate proposals on which the Council shall act in accordance with the procedure laid down in Article 283 of the EC Treaty.

CHAPTER 6

ROLE OF EUROSTAT AND RELATIONS WITH THE APPROPRIATE AUTHORITIES IN THE MEMBER STATES

Article 11

It shall be the task of Eurostat to monitor the quality of basic data and statistical methods used to work out the factors taken into account for the adjustment of remuneration. In particular, it shall make any assessments or carry out any studies required for such monitoring.

Article 12

In March each year Eurostat shall convene a working group composed of experts from the appropriate authorities in the Member States to be known as the "Working Group on Article 65 of the Staff Regulations".

At this meeting, the statistical methodology and its implementation concerning specific and control indicators shall be examined.

The information required to produce a forecast of changes in purchasing power for the purposes of the intermediate adjustment of remuneration shall also be provided, together with the data on working hours in central government departments.

Article 13

At least once a year and not later than September, Eurostat shall convene a working group composed of experts from the appropriate authorities in the Member States to be known as the "Working Group on Article 64 of the Staff Regulations".

At this meeting, the statistical methodology and its implementation concerning the establishment of the Brussels International Index and economic parities shall be examined.

Article 14

At the request of Eurostat, Member States shall inform Eurostat of any factors having a direct or indirect impact on the composition and changes in the remuneration of central government civil servants.

CHAPTER 7

FINAL PROVISION AND REVIEW CLAUSE

Article 15

102) The following Annexes are added:

"ANNEX XII

RULES FOR IMPLEMENTING ARTICLE 83A OF THE STAFF REGULATIONS

CHAPTER 1

GENERAL PRINCIPLES

Article 1

Article 2

CHAPTER 2

ASSESSMENT OF THE ACTUARIAL BALANCE

Article 3

The five-yearly actuarial assessments shall lay down the conditions for balance by taking into account, as charges on the scheme, the retirement pension as defined in Article 77 of the Staff Regulations, the invalidity allowance as defined in Article 78 of the Staff Regulations, survivors' pensions as defined in Articles 79 and 80 of the Staff Regulations.

Article 4

(a) the future changes in each official's basic salary between the calculation date and the assumed retirement age shall be taken into account;

(b) the pension rights earned before the calculation date (the past service liability) shall not be taken into account.

Article 5

REFERENCE TO A GRAPHIC>

(a) the retirement service cost (detailed in Article 6 of this Annex), i.e. the actuarial value of the pension rights that will be earned during year n, including the value of the portion of that pension that will become payable to the surviving spouse and/or dependent children upon the death of the official after retirement (reversion);

(b) the invalidity service cost (detailed in Article 7 of this Annex), i.e. the actuarial value of the pension rights that will become payable to the active officials who are expected to become invalids during year n; and

(c) the survivor's service cost (detailed in Article 8 of this Annex), i.e. the actuarial value of the pension rights that will become payable on behalf of active officials who are expected to die during year n.

These annuities shall give the actuarial present value of EUR 1 per year, taking into account the interest rate, the rate of annual change in the salary scales and the probability to be still alive at the age of retirement.

Article 6

If the cumulated pension rights (rights from the recruitment, including transfers) credited to the official at 31 December of year n-1 are at least 70 % he will deemed not to have acquired any right to pension during year n.

REFERENCE TO A GRAPHIC>

where:

SAL= present salary

GSG= estimated annual rate of General Salary Growth, (the rate of annual change in the salary scales)

ISP= estimated annual rate of Increase due to Seniority and Promotions

m= difference between the assumed age of retirement (r) and the official's present age (x)

Since the calculations shall be made in real terms, net of inflation, the rate of annual change in the salary scales and the annual rate of increase due to seniority and promotions shall be rates of increases net of inflation.

(a) an immediate deferred annuity at age x, deferred m years:

REFERENCE TO A GRAPHIC>

where:

x= official's age at 31 December of year n-1

τ= interest rate

kpx= probability of a person of age x still being alive in k years

m= difference between the assumed age of retirement (r) and the official's present age (x)

GSG= estimated annual rate of General Salary Growth, (the rate of annual change in the salary scales)

ω= ceiling of the mortality table;

and

(b) an immediate deferred reversionary annuity at ages x and y, where y is the assumed age of the spouse. This latter annuity shall be multiplied by the probability of the official of being married and by the applicable reversion rate established in accordance with Annex VIII:

REFERENCE TO A GRAPHIC>

where:

x= official's age at 31 December of year n-1

y= age of the official's spouse at 31 December of year n-1

τ= interest rate

kpx= probability of an official of age x still being alive in k years

kpy= probability of a person of age y (spouse of the official of age x) still being alive in k years

m= difference between the assumed age of retirement (r) and the official's present age (x)

GSG= estimated annual rate of General Salary Growth, (the rate of annual change in the salary scales)

ω= ceiling of the mortality table.

(a) the accrual incentive for officials remaining in service after the pensionable age;

(b) the reduction coefficient for officials leaving the service before the pensionable age.

Article 7

(a) an immediate temporary annuity at age x:

REFERENCE TO A GRAPHIC>

where:

x= official's age at 31 December of year n-1

τ= interest rate

kpx= probability of a person of age x still being alive in k years

m= difference between the assumed age of retirement (r) and the official's present age (x)

GSG= estimated annual rate of General Salary Growth, (the rate of annual change in the salary scales),

and

(b) an immediate reversionary annuity. This latter annuity shall be multiplied by the probability of the official of being married and by the applicable reversion rate:

REFERENCE TO A GRAPHIC>

where:

x= official's age at 31 December of year n-1

y= age of the official's spouse at 31 December of year n-1

τ= interest rate

kpx= probability of a person of age x still being alive in k years

m= difference between the assumed age of retirement (r) and the official's present age (x)

kpy= probability of a person of age y (spouse of the person of age x) still being alive in k year

GSG= estimated annual rate of General Salary Growth, (the rate of annual change in the salary scales).

Article 8

REFERENCE TO A GRAPHIC>

where:

y= age of the official's spouse at 31 December of year n-1

τ= interest rate

kpy= probability of a person of age y (spouse of the person of age x) still being alive in k years

GSG= estimated annual rate of General Salary Growth, (the rate of annual change in the salary scales)

ω= ceiling of the mortality table.

CHAPTER 3

SYSTEM OF COMPUTATION

Article 9

From the observation of this population shall be deduced in particular the structure of the population, the average age of retirement and the invalidity table.

Article 10

Article 11

Article 12

The rate in Articles 4 and 8 of Annex VIII for the calculation of compound interest shall be the effective rate referred to in Article 10 of this Annex and shall, if necessary, be revised on the occasion of the five-yearly actuarial assessments.

CHAPTER 4

IMPLEMENTATION

Article 13

CHAPTER 5

REVISION CLAUSE

Article 14

ANNEX XIII

Transitional measures applicable to officials of the Communities (Article 107a of the Staff Regulations)

Section 1

Article 1

"1. The posts covered by the Staff Regulations shall be classified, according to the nature and importance of the duties to which they relate, in four categories A, B, C and D, in descending order of rank.

Article 2

TABLE>

TABLE>

TABLE>

TABLE>

TABLE>

Article 3

The step occupied by an official and the seniority acquired in grade and step shall not be affected by the procedure described in Article 2(1) of this Annex. Salaries shall be determined in accordance with Article 7 of this Annex.

Article 4

For the purposes of these provisions and for the period specified in the introductory sentence of Article 1 of this Annex:

(a) the words "function group" shall be replaced by "category":

(i) in the Staff Regulations in:

• Article 5(5),

• Article 6(1),

• Article 7(2),

• Article 31(1),

• the third paragraph of Article 32,

• Article 39, point (f),

• Article 40(4),

• Article 41(3),

• Article 51(1), (2), (8) and (9),

• the first paragraph of Article 78;

(ii) in Annex II to the Staff Regulations in the fourth paragraph of Article 1;

(iii) in Annex III to the Staff Regulations in:

• Article 1(1), point (c),

• the fourth paragraph of Article 3;

(iv) in Annex IX to the Staff Regulations in:

• Article 5,

• Article 9(1), points (f) and (g);

(b) the word "function group AD" shall be replaced by "category A*":

(i) in the Staff Regulations in:

• Article 5(3), point (c);

• the third paragraph of Article 48;

• the second paragraph of Article 56;

(ii) in Annex II to the Staff Regulations in the first paragraph of Article 10;

(c) the words "function group AST" shall be replaced by "categories B, C and D*":

(i) in the Staff Regulations in:

• the second paragraph of Article 43;

• the third paragraph of Article 48;

(ii) in Annex VI to the Staff Regulations in Articles 1 and 3;

(d) the words "grade AST 1 to AST 4" shall be replaced by "categories C and D grades 1 to 4" in the Staff Regulations in the third paragraph of Article 56;

(e) in Article 5(3)(a) of the Staff Regulations the words "function group AST" are replaced by "categories B and C";

(f) Article 29(4) of the Staff Regulations is replaced by: "The European Parliament shall organise at least one competition for category C, B and A* before 1 May 2006.";

(g) in the second paragraph of Article 43 of the Staff Regulations the words "an administrator's function" are replaced by "a function in the next higher category";

(h) in Article 45a(1) of the Staff Regulations, the words "function group AST may" are replaced by "category B may" and the words "function group AD" are replaced by "a post in category A";

(i) in Article 46 of the Staff Regulations, the words "AD 9 to AD 14" are replaced by "A 9 to A 14".;

(j) in paragraph 2 of Article 29 of the Staff Regulations, the words "grades AD 16 or AD 15" are replaced by "grades A16 orA15" and the words "grades AD 15 or 14" by "grades A15 or A14";

(k) in the first paragraph of Article 12 of Annex II to the Staff Regulations, the words "AD 14" are replaced by "A*14";

(l) in Article 5 of Annex IX to the Staff Regulations:

(i) in paragraph 2, the words "AD 13" are replaced by "A*13";

(ii) in paragraph 3, the words "AD 14" are replaced by "A14 or higher" and the words "AD 16 or AD 15" by "A16 or A*15";

(iii) in paragraph 4, the words "AD 16" are replaced by "A16" and the words "AD 15" by "A15";

(m) in the second paragraph of Article 43 of the Staff Regulations, the words "As of grade 4," are deleted;

(n) in Article 5(4) of the Staff Regulations, the reference to "Annex I, point A" are replaced by a reference to "Annex XIII.1";

(o) where in the text of the Staff Regulations reference is made to the basic monthly salary of an official in grade AST 1, this shall be replaced by a reference to the basic monthly salary of an official in grade D*1.

Article 5

Article 6

Without prejudice to Articles 9 and 10 of this Annex, for the first promotion of officials recruited before 1 May 2004, the percentages referred to in Article 6(2) of the Staff Regulations and in Annex I, point B to the Staff Regulations shall be adapted to comply with the arrangements in force in each institution prior to that date.

Where the promotion of an official takes effect prior to 1 May 2004, it shall be governed by the provisions of the Staff Regulations in force at the date on which the promotion takes effect.

Article 7

Basic monthly salaries of officials recruited before 1 May 2004 shall be determined in accordance with the following rules:

The basic monthly salary paid to the official on 1 May 2004 shall be equal to the product of the applicable amount and the multiplication factor.

The multiplication factor shall be applied in order to determine the official's basic monthly salary following advancement in step or adjustment of remunerations.

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For the purpose of determining the applicable percentage, each grade shall be divided into notional steps corresponding to two months of service and into notional percentages reduced by one twelfth of the difference between the percentage for the step in question and that for the next higher step with each notional step.

For the purposes of calculating the salary before promotion of an official who is not in the last step of his grade, the value of the notional step shall be taken into account. For the purposes of this provision, each grade shall also be divided into notional salaries rising by one twelfth of the two-yearly increment for that grade throughout the span of the actual steps.

Article 8

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Article 9

From 1 May 2004 to 30 April 2011 and by derogation from Annex I, point B, to the Staff Regulations, with regard to officials in grades AD 12 and 13 and AST 10 the percentages referred to in Article 6(2) of the Staff Regulations shall be as follows:

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Article 10