Ministers’ Deputies
CM Documents

CM(2008)176 18 November 20081
——————————————

1045 Meeting, 14 January 2009
11 Administration and Logistics


11.2 Co-ordinating Committee on Remuneration (CCR)

Amendment to the pension scheme rules (Articles 6 and 6bis)

Pension rights for staff members authorised to work part-time – 191st Report

Item to be considered by the GR-PBA at its meeting on 11 December 2008

——————————————

I. Introduction

1. Staff members working part-time acquire, by virtue of Article 6, paragraph 3 of the Pension Scheme Rules, reckonable years of service reduced in accordance with the ratio between the working hours corresponding to part-time service and the official number of hours for full-time work.

II. Background for the proposal

2. The organisations have, over past years, made several efforts to authorise part-time work, especially for family reasons or at the end of a career. It is in this context and in order to take into account the needs expressed in this area that the Pension Scheme Rules should be modified in order to allow, under certain conditions, staff members working part-time to be credited with non-reduced reckonable years of service.

3. The mechanism will be opened only to staff members appointed full-time and being authorised to work part-time, the option being applicable only for future periods of employment. The whole cost related to the crediting of non-reduced reckonable years of service will be borne by the staff member. Thus, in addition to the personal contribution calculated on the salary, the staff member will pay the “three thirds” of the contribution calculated on the difference between his / her salary and the salary corresponding to a full-time appointment, in order to neutralise the budgetary impact of the mechanism. The supplementary contribution to the pension scheme resulting from such an option will be paid monthly. The organisations are invited to revise the forms used to request part-time work so that they explicitly mention the cost of the crediting of non-reduced reckonable years of service.

4. Requests must be made at the beginning of part-time service, within a time limit of eight days after part-time work has started. Staff members will be able to opt at the renewal of an authorisation to work part-time. In principle, the option of the staff member to be credited with non-reduced reckonable years of service is irrevocable. However, derogation may be granted by the Secretary / Director General in order to take into account the cost of the crediting, the burden of which is exclusively borne by the staff member.

5. Each organisation will be able to introduce transitional provisions, within the framework of the notification of the amendment, to open options for staff members currently working part-time. Such transitional provisions should in particular rule the date of entry into force of the amendment and the applicable time-limits.

III. Conclusions

1. CRSG position

The Committee of Representatives of the Secretaries- General welcomes the CCR recommendation.

2. CRP position

The CRP regretted that: staff did not have up to one month, rather than eight days after part-time work had started, to request the crediting of non-reduced reckonable years of service; the full cost of the time not worked was to be borne by the staff member; and the measure was not to some extent retroactive. It nevertheless wished to see this amendment adopted.

IV. Recommendation

In order to allow, under certain conditions, the crediting of non-reduced reckonable years of service in case of part-time-work, the CCR invites Councils to adopt the following amendments to Article 6, paragraph 3, and Article 6bis of the Pension Scheme Rules. The text of these articles is enclosed as an appendix to the present Report.

Article 6

3. In the case of part-time work:

i) reckonable years of service shall be calculated in accordance with the ratio between the working hours corresponding to part-time service and the official number of hours for full-time work in the Organisation;

ii) however, reckonable years of service shall not be reduced when the staff member authorised to work part-time has contributed to the pension scheme on the basis of full-time work, by paying, in addition to his personal contribution to the Pension Scheme for the part corresponding to his part-time work, a contribution equal to three times the rate of contribution mentioned in article 41, paragraph 4, on the difference in salary between his part-time work and the corresponding full-time work, under the provisions laid down by Instruction.

Article 6bis

2. However, when an official terminating his service in the circumstances described in paragraph 1 above had been recruited to serve on a part-time basis, or authorised to work part-time for an indefinite period or for a fixed-term renewable by tacit agreement and if the provisions of article 6, paragraph 3 ii) are not applied, the rate of the invalidity pension provided for in Article 14, paragraph 2, and the minimum and maximum amounts that apply, shall be set in accordance with the provisions laid down by Instruction.

APPENDIX
Article 6 - RECKONABLE YEARS OF SERVICE

1. The benefits provided for under these Rules shall be calculated by reference to reckonable years of service consisting of:

i) service calculated in accordance with Articles 4 and 5;
ii) service credited in accordance with Article 12, paragraph 1.

2. Incomplete years of reckonable service shall be taken into account on the basis of one-twelfth of a year for each whole month of service. For benefit calculation purposes the period remaining shall be treated as a whole month if it is equal to or more than 15 days.

However, the period remaining shall not be taken into account for the purpose of calculating the 10 years’ service required for entitlement to the retirement pension provided for in Article 7.

3. In the case of part-time work:

    i) reckonable years of service shall be calculated in accordance with the ratio between the working hours corresponding to part-time service and the official number of hours for full-time work in the Organisation;

    ii) however, reckonable years of service shall not be reduced when the staff member authorised to work part-time has contributed to the pension scheme on the basis of full-time work, by paying, in addition to his personal contribution to the Pension Scheme for the part corresponding to his part-time work, a contribution equal to three times the rate of contribution mentioned in article 41, paragraph 4, on the difference in salary between his part-time work and the corresponding full-time work, under the provisions laid down by Instruction.

A new implementing instruction 6.3 would be promulgated after the amendment to the Pension Scheme Rules is approved.

* * *

Adapting the Pension Scheme Rules to the amendment

Article 6 bis - PART-TIME SERVICE - EFFECTS ON THE CALCULATION OF ENTITLEMENT

1. Where at the time of termination of his service an official was working part-time, the salary taken into account in calculating his pension entitlement shall be that payable for full-time work at his grade and step as provided in these Rules.

2. However, when an official terminating his service in the circumstances described in paragraph 1 above had been recruited to serve on a part-time basis, or authorised to work part-time for an indefinite period or for a fixed-term renewable by tacit agreement and if the provisions of article 6, paragraph 3 ii) are not applied, the rate of the invalidity pension provided for in Article 14, paragraph 2, and the minimum and maximum amounts that apply, shall be set in accordance with the provisions laid down by Instruction.

The adaptation of the Pension Scheme Regulations would furthermore require that the following implementing instructions be amended:
- 7.1/2 – Part-time service
- 10.3 – Part-time service
- 14.1 – Part-time service

Note 1 This document has been classified restricted until examination by the Committee of Ministers.


 Top

 

  Related Documents
 
   Meetings
 
   Other documents