Pension contribution rate: end of litigation

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Earlier this year the 2012 and 2013 pension contribution rates decreased, retroactively, following an agreement between the Commission and the Council (see our previous message).

The 2011 pension contribution rate should have been decreased too, but remained frozen so far as a decision was pending at the Court of Justice.



Last Friday, the Commission and the Member States representatives found a political agreement that solves this last pending litigation between the Council and the Commission, and avoids any potential risk of an unfavourable Court judgment.

It also integrates new changes to the 2012 and 2013 pension contribution rates, caused by the 0,8% salary adaptation for 2012 applied earlier this year.



In summary:

- the 2011 contribution rate will decrease from 11,6 % to 11,0 %

- the 2012 contribution rate will decrease from 10,6 % to 10,0 %

- the 2013 contribution rate will increase from 10,3 % to 10,9 %




The Council should approve the decision later this week and the changes would then be retroactively applied on the December salary slip.

Staff recruited before July 2011 will receive money back (0,6 % gross x 12 months); staff recruited after July 2013 will have to pay money back.



The 2014 contribution rate is still under discussion and no information can be disclosed at present.



As usual, we will keep you informed on any future update.

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