Explanatory Memorandum to COM(2013)771 - Adjustment with effect from 1 July 2013 of the correction coefficients applied to the remuneration and pensions of officials and other servants of the EU

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Context of the proposal

Grounds for and objectives of the proposal As is the case each year, under Article 64 of the Staff Regulations, the Council acting on a Commission proposal based on the Eurostat report must take a decision before the end of the year adjusting the correction coefficients applicable to the remuneration and pensions of EU staff.

General context The economic parities for remuneration establish the purchasing power equivalence of the remuneration paid in Brussels, as the reference city, with that paid in the other places of employment. The economic parities for pensions establish the purchasing power equivalence of the pension paid in Belgium, as the reference country, with that paid in the other countries of residence. Eurostat has calculated those parities in agreement with the national statistical bodies. Due to the suspension of the application of certain provisions in Article 65 of the Staff Regulations in 2013 and 2014, this Commission proposal does not include the annual adjustment to remuneration and pensions, but is limited to the adjustment of the correction coefficients and updating the reference date for the exchange rates.

Existing provisions in the area of the proposal A proposal is presented each year in accordance with the Staff Regulations.

Consultation of interested parties and impact assessment

|| Consultation of interested parties

Methods of consultation used, main sectors covered and general profile of respondents The elements of the proposal have been discussed with the staff representatives in accordance with the appropriate procedures.

Summary of replies received and the way in which they have been taken into account The proposal takes account of the opinions of the parties consulted.

Impact assessment The purpose of the proposal is to adjust the correction coefficients applied to remuneration and pensions in accordance with the legislation in force. The legislation in force permits no alternative.

1.

Legal elements of the proposal



Summary of the proposed action Eurostat has drawn up a report on changes in the cost of living in Belgium and the economic parities from which the various weightings derive. ADJUSTMENT TO REMUNERATION AND PENSIONS OUTSIDE BELGIUM AND LUXEMBOURG The weightings applicable to remuneration, pensions and transfers of part of remuneration as set out in the Regulation have been calculated as follows: - Weightings for REMUNERATION of officials outside Belgium and Luxembourg: Eurostat has calculated, in agreement with the national statistical bodies, the economic parities which establish the purchasing power equivalence of the remuneration paid in Brussels with that paid in the other places of employment as at 1 July. The weightings applicable to the remuneration of officials and other servants employed in the Member States other than Belgium and Luxembourg are determined by the ratios between these economic parities and the exchange rates applicable as at 1 July. - Weightings for PENSIONS outside Belgium and Luxembourg and weightings for TRANSFERS: Eurostat has calculated, in agreement with the national statistical bodies, the economic parities which establish the purchasing power equivalence of the pension paid in Belgium with that paid in the other countries of residence as at 1 July. The weightings calculated for the pensions of individuals living outside Belgium and Luxembourg in the various countries are determined by the ratios between these economic parities and the exchange rates applicable as at 1 July. Under Article 17(3) of Annex VII to the Staff Regulations, these weightings are directly applicable to certain transfers made by officials and other servants. Under Article 20 of Annex XIII to the Staff Regulations, the weightings apply only to the part of the pension corresponding to pension rights acquired before 1 May 2004.

Legal basis The Staff Regulations, and in particular Articles 63 and 64 thereof constitute the legal basis.

Principles of Subsidiarity and Proportionality

|| The proposal is compliant with the principles of subsidiarity and proportionality for the following reasons: - The proposal concerns an area that falls within the exclusive competence of the Union;

- Article 64 of the Staff Regulations provide for a Council Regulation;

- The financial burden results directly from the application of the provisions of the Staff Regulations.

2.

Budgetary implications



The impact of the adjustment of correction coefficients on administrative expenditure is detailed in the financial statement annexed hereto.