Staff regulations - Appendix V: Pension Scheme rules

· the European Space Agency (ESA) [ex-European Organisation for the Development and Construction of Space Vehicle Launchers (ELDO) and the European Space Research Organisation (ESRO)],

· the North Atlantic Treaty Organisation (NATO),

· the Organisation for Economic Co-operation and Development (OECD),

· the Western European Union (WEU),

· the European Organisation for the Exploitation of Meteorological Satellites (EUMETSAT)^{^[2]},

who are not affiliated to any other pension scheme set up by one of these Organisations after 1 December 2002.

2. This scheme shall not apply to other categories of personnel defined in each Organisation, such as experts, consultants, temporary staff, auxiliary staff, employees and personnel hired under local labour legislation.

3. In these Rules, the term “Organisation” refers to that Organisation listed in paragraph 1 above which employs the staff members to whom these Rules apply, and the term “staff member” means the staff referred to in paragraph 1 above.

Article 2 – Deferred entitlement

Where the medical examination which every staff member has to undergo as part of the appointment process (and the possible consequences of which have been duly notified to him before his appointment) shows him to be suffering from an illness or disablement, the Organisation may decide that, as regards risks arising from an illness or disablement existing before he took up his duties, the said staff member shall not be entitled to the invalidity or death benefits provided for in these Rules until the expiry of a period not exceeding five years from the date when he entered the service of the Organisation. If a staff member leaves an Organisation and takes up employment in another Organisation within a period of not more than six months, the time spent in the service of the first Organisation shall be deducted from this five-year period.

Article 3 – Definition of salary

1. For the purposes of these Rules, salary shall be the monthly basic salary of the staff member, according to the scales in force in the Organisations listed in Article 1.

2. The salaries taken into consideration for the calculation of benefits shall be those of serving staff members, whether in respect of benefits to be paid in the future or those actually being paid.

Article 4 – Definition of service conferring entitlement to benefits

1. Subject to the provisions of Articles 5 and 41, paragraph 1, entitlement to benefit under these Rules shall be determined by the total of the periods served in the Organisations listed in Article 1:

i) as a staff member;

ii) in any other capacity prior to appointment as a staff member, provided any periods so served were not separated by breaks of more than one year.

2. In addition to the total reckonable years of service thus calculated, a staff member may request, on cessation of work, that periods of service corresponding to certain statutory indemnities be taken into account, in particular payment in lieu of notice, for loss of employment and for leave not taken, under the provisions laid down by Instruction[3].

3. Periods of part-time service shall be taken into consideration in calculating entitlement to benefit under these Rules provided they correspond to at least half-time work as defined by the provisions laid down by Instruction.

4. The periods referred to in Article 16, paragraph 3 shall also be taken into consideration.

Article 5 – Calculation of service conferring entitlement to benefits

1. Where a staff member appointed by the Organisation has previously served with one of the Organisations listed in Article 1, his entitlement to benefits under the terms of Article 4 shall be conditional upon his paying over to the Organisation which re-appoints him the amounts paid to him on leaving his previous service:

i) pursuant to Article 11;

ii) in respect of his Provident Fund holding, within the limits stated in Article 44, paragraph 2, plus compound interest on such amounts at 4% per annum from the date when the staff member received them until the date when they are paid over in accordance with this paragraph.

Should the staff member fail to pay over the amounts in question, reckonable years of service shall count only as from the new appointment.

2. Where a staff member appointed by the Organisation was previously drawing a retirement pension in respect of service with one of the Organisations listed in Article 1, payment of that pension shall cease.

If the staff member refunds to the Organisation offering him a new appointment the pension payments he has received, the provisions of Article 4 shall apply on cessation of his new appointment.

If he does not make this refund, the years of service for which credit was acquired in the employment that originally entitled him to payment of the discontinued retirement pension shall be taken into account in the calculation of the retirement pension due on cessation of his new employment by reference to the salary for his last grading in such previous employment; moreover, that part of the final pension figure shall be abated by 5 per cent for each whole year during which the staff member drew the initial pension before the age of 60.

3. Where a staff member ceases his functions at a grade and step lower than that which he had previously held in the Organisation or in a previous Organisation, his entitlement to benefits under these Rules shall be determined by taking into account the total of his reckonable years of service and the benefits shall be calculated on the basis of the salary for the highest grading held by him. However, a reduction shall be made in the number of years of service to be credited to him in respect of time served at a lower grade or step after having held the grade by reference to which benefits are calculated; this reduction shall be proportionate to the difference between the said gradings.

4. For the implementation of paragraphs 2 and 3 above, salaries shall be taken into account in accordance with the scales in force when the final pension assessment is made.

5. The crediting of the periods referred to in Article 4, paragraph 1 ii) shall be conditional on:

i) the staff member submitting an application to that effect within six months following his taking up duty as a staff member; the application shall specify the periods of service with which the staff member wishes to be credited;

ii) the Organisation giving its agreement;

iii) the staff member paying, for each month of service with which he is to be credited, the contribution provided for in Article 41, calculated on the basis of his first monthly salary as a staff member.

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 the provisions of 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 ten 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.^{^[4]}

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[5] 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.^{^[6]}

CHAPTER II: RETIREMENT PENSION AND LEAVING ALLOWANCE

SECTION 1: RETIREMENT PENSION

Article 7 – Conditions of entitlement

A staff member who has completed ten or more years’ service, within the meaning of Article 4, in one or more of the Organisations listed in Article 1 shall be entitled to a retirement pension.

Article 8 – Age of entitlement, deferred or early pension

1. A staff member shall become eligible for a retirement pension at the age of 60.

2. Pension rights shall continue to accrue to a staff member continuing to be employed after pensionable age, but his pension shall not exceed the maximum amount laid down in Article 10, paragraph 2.

3. If a staff member ceases his functions before pensionable age, payment of his retirement pension shall be deferred until he reaches that age.

4. However, a staff member who retires before pensionable age may request early payment of his pension provided he is at least 50 years old.

In such a case, the amount of the retirement pension shall be reduced by reference to the age of the staff member when payment of his pension begins, as shown in the table below.[7]

Age at which payment of pension begins	Early retirement pension as a percentage of pension at 60
50	0.60
51	0.63
52	0.66
53	0.69
54	0.73
55	0.77
56	0.81
57	0.85
58	0.90
59	0.95

Article 9 – Commencement and cessation of entitlement

1. Entitlement to payment of a retirement pension shall commence on the first day of the month following that in which the person concerned became eligible for payment of the pension.

2. Entitlement shall cease at the end of the month in which the pensioner dies.

Article 10 – Rate of pension

1. The amount of the retirement pension shall be, per reckonable year of service within the meaning of Article 6, 2% of the salary corresponding to the last grade held by the staff member for not less than one year before cessation of his appointment and the last step held in that grade.

2. The maximum rate of the pension shall be 70% of this salary, subject to the provisions of paragraph 3 below.

3. The amount of the retirement pension shall not be less than 4% of the salary for grade C1, step 1, per reckonable year of service credited pursuant to Article 6; it may not, however, exceed the staff member’s last salary as defined in Article 3.

SECTION 2: LEAVING ALLOWANCE

Article 11 – Leaving allowance

1. A staff member whose service terminates otherwise than by reason of death or invalidity and who is not entitled to a retirement pension nor to the benefit of the provisions of Article 12, paragraph 2, shall be entitled on leaving to payment of:

i) the aggregate amount deducted from his salary in respect of his pension contribution, together with compound interest at the rate of 4% per annum;

ii) an allowance equal to one month and a half of his last salary multiplied by the number of reckonable years of service credited within the meaning of Article 6[8];

iii) one-third of the amounts paid to the Organisation under the provisions of Article 12.1, together with compound interest at the rate of 4% per annum. Should, however, the whole of these amounts have to be refunded to his previous employer, the reckonable years of service corresponding to those amounts shall be disregarded in the calculation of the leaving allowance.

2. Termination of service shall be defined by each Organisation.

SECTION 3: INWARD AND OUTWARD TRANSFER OF PENSION RIGHTS

Article 12 – Inward and outward transfer of pension rights

1. A staff member who enters the service of the Organisation after leaving the service of a government administration or national organisation, or international organisation not listed in Article 1, paragraph 1, or a firm, may arrange for payment to the Organisation in accordance with the provisions laid down by Instruction, of any amounts corresponding to the retirement pension rights accrued under the pension scheme to which he was previously affiliated in so far as that scheme allows such a transfer.

In such cases, the Organisation shall determine, by reference to the provisions laid down by Instruction, the number of years of reckonable service with which the staff member shall be credited under its own pension scheme.

2. A staff member who leaves the service of the Organisation to enter the service of a government administration or national organisation, or international organisation, not listed in Article 1, paragraph 1, which has entered into an agreement with the Organisation, shall be entitled to transfer to the pension fund of that administration or organisation:

· either the actuarial equivalent of his retirement pension rights accrued under these Rules, such equivalent being calculated in accordance with the provisions laid down by Instruction;

· or, in the absence of such rights, the amounts provided under Article 11.

3. If, as a result of a staff member’s transfer from one Organisation listed in Article 1 to another, the leaving allowance is paid by an Organisation other than that which received the amounts referred to in paragraph 1 above, Article 11, paragraph 1 iii) shall apply as if the Organisation responsible for paying the leaving allowance had received the amounts referred to.

CHAPTER III: INVALIDITY PENSION

Article 13 – Conditions of entitlement – Invalidity Board

1. Subject to the provisions of Article 2, an invalidity pension shall be payable to a staff member who is under the age limit laid down in the Staff Regulations and who, at any time during the period in which pension rights are accruing to him, is recognised by the Invalidity Board defined below to be suffering from permanent invalidity which totally prevents him from performing his job or any duties corresponding to his experience and qualifications which may have been proposed to him by the Organisation.

2. The Invalidity Board shall consist of three medical practitioners, the first two being appointed by the Organisation and the staff member concerned, respectively, and the third one selected jointly by the first two. Cases shall be submitted to it by the Organisation either on its own initiative or at the request of the staff member.

Article 14 – Rate of pension

1. Subject to the provisions of Article 5, paragraph 3, the invalidity pension shall be equal to the retirement pension to which the staff member would have been entitled at the age limit laid down in the Staff Regulations if he had continued to serve until that age and without the need for a minimum of ten years’ service under Article 7.

2. However, where the invalidity arises from an accident in the course of the performance of his duties, from an occupational disease, from a public-spirited act or from risking his life to save another human being, the invalidity pension shall be 70% of salary. In the event of invalidity resulting from a cause other than these, the invalidity pension provided for in this paragraph may not be less than the invalidity pension which would be payable under paragraph 1 of this Article.

3. The salary used as a basis for the calculation of the invalidity pension referred to in paragraphs 1 and 2 above shall be the salary for the grade and step held by the staff member in accordance with the scales in force at the date laid down in Article 17, paragraph 1.

4. The invalidity pension shall not be less than 120% of the salary for grade C1, step 1, but may not be more than the last salary, such salaries being those which appear in the scales in force at the date laid down in Article 17, paragraph 1, subject to any adjustments provided for under Article 36.

5. In the case of invalidity deliberately brought about by the staff member, the Organisation shall decide whether he should receive an invalidity pension or only a retirement pension or a leaving allowance, depending on his length of effective service.

Article 15 – Earnings rule

1. Where a person in receipt of an invalidity pension is nevertheless gainfully employed, this pension shall be reduced by the amount by which his pension together with the remuneration he receives for the said employment exceeds the salary for the highest step in the grade he held at the time of his recognition as unfit for service.

2. This reduction shall apply only up to the age limit laid down in the Staff Regulations.

Article 16 – Medical examination – termination of pension

1. While a person drawing an invalidity pension is still under the age limit laid down in the Staff Regulations, the Organisation may have him medically examined periodically to ascertain that he still satisfies the conditions for entitlement to such pension, in particular having regard to any new duties corresponding to his experience and qualifications which may have been proposed to him by the Organisation.

2. When a person drawing an invalidity pension who has not reached the said age limit ceases to satisfy the conditions for entitlement to the invalidity pension, the Organisation shall terminate that pension.

3. The time during which the person concerned has drawn his invalidity pension shall then be reckoned, without payment of back contributions, for the calculation of the leaving allowance or retirement pension, as the case may be.

Article 17 – Commencement and cessation of entitlement

1. Entitlement to an invalidity pension shall commence on the first day of the month following the date of the beginning of the invalidity as recognised by the Invalidity Board.

2. Subject to application of Article 16, paragraph 2:

i. the invalidity pension payable under Article 14, paragraph 2 shall be paid for life;

ii. in other cases, entitlement to an invalidity pension shall terminate:

o either at the age limit laid down in the Staff Regulations,

o or at the end of the month in which the recipient of such a pension dies.

Where the invalidity pension terminates because the person concerned has reached the age limit laid down in the Staff Regulations, he shall, notwithstanding the ten-year minimum requirement provided for in Article 7, be entitled to a retirement pension calculated as if he had remained in service until this age.

3. Invalidity pensions assessed before the 1 December 2002, whatever the cause of the invalidity, shall be paid for life.

CHAPTER IV: SURVIVOR’S AND REVERSION PENSIONS

Article 18 – Conditions of entitlement[9]

1. The surviving spouse[10] of a staff member who died in service shall be entitled to a survivor’s pension, provided they had been married to each other for at least one year at the time of the staff member’s death, unless the death resulted either from disablement or illness contracted in the performance of his duties, or from an accident.

2. A reversion pension shall be payable to the surviving spouse:

i) of a former staff member drawing an invalidity pension, if they were married to each other for at least one year at the time of his being recognised an invalid; this condition of anteriority shall not apply if the marriage had existed for at least five years at the time of the former staff member’s death, or if the death resulted either from disablement or illness contracted in the performance of his duties, or from an accident;

ii) of a former staff member drawing a retirement pension, if they had been married to each other for at least one year at the time when the former staff member’s appointment ceased; this condition of anteriority shall not apply if the marriage had existed for at least five years at the time of the former staff member’s death ; or

iii) of a former staff member entitled to a deferred pension, if they had been married to each other for at least one year at the time when the former staff member’s appointment ceased; this condition of anteriority shall not apply if the marriage had existed for at least five years at the time of his death.

3. The above-prescribed conditions of anteriority or minimum duration of marriage shall not apply where there are one or more children of the marriage or of a marriage of the staff member contracted prior to the cessation of his appointment, inasmuch as the non-remarried surviving spouse is providing for their needs; in such case, the survivor’s or reversion pension shall be payable under the derogation provided for in the present paragraph, for so long as the children are actually being so provided for.

When they are no longer being so provided for, the survivor’s or reversion pension shall nonetheless continue to be payable for so long as the surviving spouse does not have an income of his own from the exercise of any occupation, or from any retirement pension or other survivor’s or reversion pension, equal to at least the amount of the survivor’s or reversion pension from the Organisation.

4. Entitlement to a survivor’s or reversion pension shall be subject to the provisions of Article 2.

Article 19 – Rate of pension

1. Survivor’s and reversion pensions shall be 60% of:

i) the retirement pension that would have been payable to the staff member, had he not died in service, on the basis of his reckonable service credited up to the time of his death, without the need for a minimum of ten years’ service under the provisions of Article 7;

ii) the deferred retirement pension that would have been paid to the former staff member at the age of 60;

iii) the invalidity pension that was actually being paid to the staff member at the time of his death, no account being taken of reductions under Article 15;

iv) the retirement pension that was actually being paid to the staff member at the time of his death, no account being taken of any reductions under Article 8.4.

2. Where a staff member has died as a result of an accident in the course of the performance of his duties, from an occupational disease, from a public-spirited act or from risking his life to save another human being, the survivor’s pension shall be 60 per cent of the invalidity pension to which the staff member would have been entitled under Article 14, paragraph 2 had he survived.

3. The survivor’s or reversion pension shall not be less than 35 per cent of the staff member’s last salary; nor shall it be less than the salary for Grade C1, step 1.

4. However, the reversion pension shall not exceed the amount of the former staff member’s own pension in the cases covered by paragraph 1 ii), iii) and iv) above, nor the amount of the pension to which the former staff member would have been entitled had he reached the age limit laid down in the Staff Regulations at the time of his death.[11]

Article 20 – Reduction for difference in age

Where the difference in age between the deceased staff member or former staff member and his younger surviving spouse and/or former spouse, less the length of time they have been married, is more than ten years, the survivor’s or reversion pension, calculated in accordance with the preceding provisions, shall be subject to a reduction, per year of difference, amounting to:

· 1% for the years between 10 and 20;

· 2% for the years 20 up to but not including 25;

· 3% for the years 25 up to but not including 30;

· 4% for the years 30 up to but not including 35;

· 5% for the years from 35 upwards.

Article 21 – Remarriage [12]

1. Entitlement to a survivor’s or reversion pension shall cease on remarriage. The surviving spouse or ex-spouse shall be entitled to immediate payment of a capital sum equal to twice the annual amount of the pension, if there are no dependent children to whom the provisions of Article 25, paragraph 4 apply.

2. The capital sum paid to the ex-spouse shall not be more than the amount to which he could still be entitled under Article 22, paragraph 1.

Article 22 – Rights of a former spouse [13]

1. The non-remarried former spouse of a staff member or former staff member shall, on the latter’s death, be entitled to a survivor’s or reversion pension, provided that and for as long as the staff member or former staff member was, at the time of his death and by virtue of a court decision which has become final and binding, under an obligation to pay maintenance or compensation to the former spouse in a personal capacity; but the survivor’s or reversion pension shall not exceed the amount of such payment.

This entitlement shall not arise if the former spouse remarried before the staff member or former staff member died. If remarriage takes place after the staff member’s or former staff member’s death and while the conditions laid down in the sub-paragraph above are still fulfilled, the provisions of Article 21 shall apply.

2. Where a staff member or former staff member dies leaving both a spouse entitled to a survivor’s or reversion pension and a non-remarried former spouse fulfilling the conditions laid down in paragraph 1 above, the whole of the survivor’s or reversion pension shall be divided between the before-mentioned persons in proportion to the duration of their marriages.

The amount to which a non-remarried former spouse is entitled shall however not be more than the amount of the maintenance or compensation payable at the time of the death of the staff member or former staff member.

3. Where one of the persons entitled to a survivor’s or reversion pension renounces his share, ceases to satisfy the conditions for entitlement or forfeits his rights under Article 35 or where the amount of his pension has been restricted under the terms of the second sub-paragraph of paragraph 2 above, his share shall accrue to the share of the other person, except where pension rights revert to orphans, as provided under the last sub-paragraph of Article 25, paragraph 3. In such a case, the restriction laid down in the second sub-paragraph of paragraph 2 above shall apply.

4. Reductions in respect of difference in age as provided for in Article 20 shall be applied separately to survivors’ and reversion pensions calculated in accordance with the present Article.

Article 23 – Commencement and cessation of entitlement

1. Entitlement to a survivor’s or reversion pension shall commence from the first day of the month following that in which the staff member or former staff member died. If the salary of a staff member who died in service continues to be paid to a surviving spouse or former spouse, directly and in full, under the Staff Regulations and Rules of the Organisation, payment of the pension shall be deferred accordingly.

2. Entitlement to a survivor’s or reversion pension shall cease at the end of the month in which the recipient of the pension dies or ceases to satisfy the conditions for entitlement to that pension.

Article 24 – Incapacitated widower

Deleted.

CHAPTER V: ORPHAN’S OR DEPENDANT’S PENSION

Article 25 – Rate of orphan’s pension

1. Where a staff member or former staff member drawing a retirement or invalidity pension or entitled to a deferred pension dies, his children shall be entitled to an orphan’s pension if they fulfil the conditions laid down in paragraph 2.

2. The legitimate, natural or adopted children of a staff member or former staff member who has died shall be entitled to an orphan’s pension:

i) when the deceased or his household provided their main and continuing support at the time of death; and

ii) when they satisfy the conditions of age, education or handicap required for the granting of the allowance for a dependent child.

The legitimate or natural children of a deceased staff member or former staff member who were born not more than 300 days after his death shall also be entitled to an orphan’s pension.

3. Where there are one or more persons entitled to a survivor’s or reversion pension, the amount of the orphan’s pension shall correspond to the higher of the following amounts:

i) 40 % of the survivor’s or reversion pension, no account being taken of reductions pursuant to Article 20; or

ii) 50 % of the salary for grade C1, step 1, according to the scale in force when the former staff member’s pension was assessed, this amount being updated in accordance with the provisions of Article 36, or, if he was not drawing a retirement or invalidity pension, according to the scale in force at the time of death.

The orphan’s pension shall be increased, in respect of the second and every further beneficiary, by an amount equal to the allowance for a dependent child.

The orphan’s pension shall be brought up to the level provided for in paragraph 4 in the event of the beneficiaries of a survivor’s or reversion pension dying or remarrying or losing the right to that pension.[14]

4. Where there are no beneficiaries of a survivor’s or reversion pension, the orphan’s pension shall correspond to the higher of the following amounts:

i) 80% of the survivor’s or reversion pension, no account being taken of reductions pursuant to Article 20; or

ii) 100% of the salary for grade C1, step 1, according to the scale in force when the former staff member’s pension was assessed, this amount being updated in accordance with the provisions of Article 36, or, if he was not drawing a retirement or invalidity pension, according to the scale in force at the time of death.

The orphan’s pension shall be increased, in respect of the second and every further beneficiary, by an amount equal to twice the allowance for a dependent child.

5. The total amount of the orphan’s pension shall be divided equally among all the orphans.

Article 25 bis – Rate of pension for other dependants

1. Where a staff member or former staff member drawing a retirement or invalidity pension or entitled to a deferred pension dies, the persons (including children not fulfilling the conditions laid down in Article 25) recognised as satisfying the conditions for the granting of the allowance for a dependent child or dependent person under the Staff Regulations and Rules of the Organisation shall be entitled to a dependant’s pension.

2. The pension paid to each dependant shall be equal to the lowest of the following amounts:

i) the amount, as recognised by the Organisation, of the support provided to that person by the staff member or former staff member at the time of his death;

ii) twice the amount of the dependant’s allowance in force in the Organisation at the time of the death of the staff member or former staff member; or

ii) where an orphan’s pension is paid, the amount of each orphan’s share pursuant to Article 25, paragraph 5.

Article 26 – Commencement and cessation of entitlement [15]

1. The pensions provided for under Articles 25 and 25 bis shall be payable as from the first day of the month following that in which the staff member or former staff member died. If the salary of a staff member who died in service continues to be paid to a surviving spouse or former spouse, directly and in full, under the Staff Regulations and Rules of the Organisation, payment of the pensions shall be deferred accordingly.

2. The pensions under Articles 25 and 25 bis shall cease to be payable at the end of the month in which the child or other dependant ceases to satisfy the conditions for entitlement to the allowance for a dependent child or dependent person under the Staff Rules and Regulations of the Organisation.

Article 27 – Beneficiaries of more than one category

1. Where a staff member or former staff member leaves a spouse or former spouse, on the one hand, and children or dependent persons, on the other, with entitlement to a pension, the total pension, calculated as if for a surviving spouse having all these persons dependent on him, shall be apportioned among the various categories of beneficiaries in proportion to the pensions which would have been payable to each category if treated separately.

2. Where there are children or dependent persons from different family groups, with entitlement to a pension, the total pension, calculated as though all were from the same family group, shall be apportioned among the various categories of beneficiaries in proportion to the pensions which would have been payable to each category if treated separately.

CHAPTER VI: FAMILY ALLOWANCES

Article 28 – General provisions [16]

1. Household allowance, children’s and dependants’ allowance, handicapped child allowance and education allowance, paid to the staff members of the Organisation as family allowances, are granted according to the modalities and conditions of entitlement provided for under the Staff Regulations and Rules and under the present Rules:

i) to the recipient of a retirement pension as from the age of 60;

ii) to the recipient of an invalidity pension;

iii) to the recipient of a survivor’s or reversion pension, in respect of the sole beneficiaries who were or would have been recognised as depending on the staff member or the former staff member if he had not died.

2. The double entitlement regulations apply to any allowance of a same nature, regardless of its name.

3.a. The household allowance shall be calculated by reference to the pension of the recipient.

b. Where the recipient of a survivor’s or reversion pension is a staff member of one of the Organisations listed in Article 1 or is in receipt of a pension assessed by any of these organisations, only one household allowance shall be granted.

c. Where the spouse of a person entitled to a pension referred to in paragraph 1 is a staff member of one of the Organisations listed in Article 1 or is in receipt of a pension assessed by any of these organisations, the household allowance shall only be paid to one of the spouses.

d. Where the spouse of the recipient of a pension referred to in paragraph 1 is entitled, under another scheme, to an allowance of a same nature than the household allowance, only the difference between the amount of the allowance under the present scheme and that of the allowance received by the spouse under the other scheme shall be paid to the recipient of the pension.

4. Where the recipient of a pension referred to in paragraph 1, or his household or the beneficiary concerned, is entitled to allowances referred to in paragraph 1 and also, under another scheme and for the same person, to a children's or dependants' allowance, or a handicapped child allowance of a same nature than those referred to in paragraph 1, the Organisation shall only pay the difference between the amount of the allowances granted under the present scheme and that of the allowances received under the other scheme.

5. The deduction of family allowances received under another scheme, referred to in Article 28, paragraphs 3 and 4, shall be automatic, save where the recipient produces evidence that the above-mentioned scheme makes a deduction of the amounts received under the present scheme.

6. The amount of the allowance for a child or other dependant payable to the recipient of a survivor’s or reversion pension shall be twice the normal amount.

Entitlement to the allowances provided for in this Article shall cease at the end of the month in which the conditions for entitlement to those allowances under the Staff Rules and Regulations of the Organisation are no longer satisfied.

CHAPTER VII: CEILING ON BENEFITS

Article 29 – Ceiling on benefits

1. Where a staff member dies, the total amount payable in respect of survivor’s, orphan’s and dependant’s pensions and of family allowances shall not exceed the maximum of the retirement pension referred to in Article 10, paragraphs 2 and 3, together with the family allowances to which the deceased staff member was entitled. In any event, this total shall not exceed the last salary received by the staff member together with the family allowances to which he was entitled.

2. Where a former staff member drawing a retirement pension dies, the total amount payable in respect of reversion, orphan’s and dependant’s pensions and of family allowances shall not exceed the amount of the pension and family allowances received by the former staff member.

3. Where a former staff member entitled to a deferred or invalidity pension dies, the total amount payable in respect of reversion, orphan’s and dependant’s pension and of family allowances shall not exceed the amount of the retirement pension and family allowances he would have received if he had reached the statutory age limit at the time of his death.

4. The amounts payable in respect of survivor’s, reversion, orphan’s and dependant’s pensions shall, where applicable, be reduced in proportion to the share of each beneficiary.

CHAPTER VIII: PROVISIONAL PENSIONS

Article 30 – Conditions of entitlement

1. Where a staff member or former staff member entitled to a retirement or invalidity pension has been missing for more than one year in circumstances justifying a presumption of death, the persons entitled under him may provisionally be awarded a survivor’s, reversion, orphan’s or dependant’s pension, as appropriate.

2. The provisions of paragraph 1 above shall apply mutatis mutandis to persons recognised as dependants of a person in receipt of a survivor’s or reversion pension, who has been missing for more than one year.

3. Provisional pensions under paragraphs 1 and 2 above shall be converted into definitive pensions when the death of the staff member, former staff member, spouse or former spouse has been established officially or when that person has been declared missing by a final Court decision.

CHAPTER IX: DETERMINATION OF THE AMOUNTS OF BENEFITS

SECTION 1: ASSESSMENT OF ENTITLEMENT

Article 31 – Organisation responsible for the assessment

1. The assessment of entitlement to the benefits payable under these Rules shall be made by the Organisation, with the assistance of the International Service for Remunerations and Pensions[17], also responsible for such part of the work as can be centralised.

2. A detailed statement of the assessment shall be communicated to the staff member or the persons entitled under him after approval by the Organisation on the advice of the Pensions Administrative Committee of the Co-ordinated Organisations (CAPOC) referred to in Article 51.

3. Until this approval has been given, pensions shall be paid on a provisional basis.

Article 32 – No double entitlement [18]

1. Without prejudice to the application of Articles 4 and 5, the following may not be paid concurrently out of the budgets of one or more of the Organisations listed in Article 1:

i) a retirement and an invalidity pension as provided for in these Rules or under the Rules of the New Pension Scheme or of the Defined Benefit Funded Pension Scheme^{^[19]};

ii) a retirement or invalidity pension and a loss-of-employment indemnity not paid as a lump sum.

iii) two retirement pensions.^{^[20]}

2. Recipients of a retirement or invalidity pension under the present Rules may not be granted the status of staff member in the meaning of Article 1. The modalities for double entitlement to a retirement pension and any other remuneration paid by a Co-ordinated Organisation shall be defined by each Organisation.

3. Where they are due to the same cause, there can be no double entitlement to benefits under the present Rules and annuities under a scheme distinct from the Pension Scheme and financed by an Organisation listed in Article 1.

Article 33 – Basis of calculation

1. Pensions provided for in the Rules shall be calculated by reference to the salary defined in Article 3 and to the scales applicable to the country of the staff member’s last posting.

2. However, if the former staff member settles subsequently:

i) in a Member country of one of the Co-ordinated Organisations of which he is a national, or

ii) in a Member country of one of the Co-ordinated Organisations of which his spouse is a national; or

iii) in a country where he has served at least five years in one of the Organisations listed in Article 1,

he may opt for the scale applicable to that country.

The option shall apply to only one of the countries referred to in this paragraph, and shall be irrevocable except where paragraph 3 below is applicable.

3. On the death of his spouse, a former staff member who settles in the country of which he is a national, or of which such deceased spouse was a national, may opt for the scale applicable in that country.

The same option shall be open to the surviving spouse or former spouse of a former staff member and to orphans who have lost both parents.

4. These options, available under paragraphs 2 and 3, shall be irrevocable.

5. If the staff member, spouse, former spouse or orphan opts for the scale of a country referred to in paragraph 2, but there is no scale approved by the Organisation for that country, the scale applicable to the country in which the Organisation responsible for paying his pension has its headquarters shall be applied temporarily until a scale had been adopted for the country chosen.

6. The scales referred to in this Article are those in force on the first day of the month following that in which the staff member’s appointment has ceased.

7. The provisions of paragraph 2 above do not apply to the benefits under Article 11. However, a staff member who settles in a country of which he is a national may have the leaving allowance provided for in Article 11 ii) calculated in accordance with the scale for that country, provided such a scale has been approved by the Organisation at the time of his departure.

Article 34 – Re-assessment – cancellation

1. Benefits may be re-assessed at any time in the event of error or omission of any kind. Any undue payments must be reimbursed; they may be deducted from the benefits payable to the person concerned or to the persons entitled under him or from the amounts due to his estate. The reimbursement may be spread over a period.

2. Benefits shall be subject to modification or cancellation if their award was contrary to the provisions of these Rules.

Article 35 – Requirement of evidence – forfeiture of rights

1. Persons who are eligible for benefits under these Rules shall inform the Organisation or the International Service for Remunerations and Pensions[21] of any facts which may affect their entitlement to benefits and to furnish such supporting evidence as may be required of them.

Should they fail to comply with these obligations, they may be deprived of the right to benefits under this Scheme; save in exceptional circumstances, they shall refund any sums received to which they were not entitled.

2. Where the surviving spouse, orphans or other dependants of a deceased staff member or former staff member fail to apply for their pension within twelve months from the date of his death, payment of the benefits under these Rules may, at the discretion of the Organisation, be deferred until the first day of the month following that in which they make their application.

3. Where a staff member’s or former staff member’s former spouse referred to in Article 22 fails to apply for a pension within twelve months from the date of his death, the former spouse’s rights may, at the discretion of the Organisation, be wholly forfeited.

SECTION 2: ADJUSTMENT OF BENEFITS

Article 36 – Adjustment of benefits [22]

Should the Council of the Organisation responsible for the payment of benefits decide on an adjustment of salaries in relation to the cost of living, it shall grant at the same time an identical adjustment of the pensions currently being paid, and of pensions whose payment is deferred.

Should salary adjustments be made in relation to the standard of living, the Council shall consider whether an appropriate adjustment of pensions should be made.[23]

SECTION 3: PAYMENT OF BENEFITS

Article 37 – Mode of payment

1. Subject to the provisions of Article 11 and unless otherwise provided under these Rules, pensions, family allowances and provisions for tax adjustments shall be paid monthly in arrears.

2. These amounts shall be paid by the Organisation or by the International Service for Remunerations and Pensions[24] if it has been empowered to do so.

3. Benefits shall be paid in the currency used in their calculation in accordance with Article 33.

4. Benefits shall be paid to the recipient by bank transfer to an account either in the country of the scale used to calculate these benefits, or in the country where the recipient resides.

Article 38 – Sums owed to the Organisation

Any sum owed by a staff member, former staff member or pensioner to any of the Organisations listed in Article 1 at the date when the benefits are payable under these Rules shall be deducted from the amount of these benefits or from the benefits payable to those entitled under him. The deduction may be spread over a period.

Article 39 – Right of subrogation

1. Where a staff member’s invalidity or death is attributable to a third party, the award of the benefits provided for in these Rules shall in principle be made subject to the beneficiary assigning to the Organisation his claims against such third party, up to the amount of such benefits.

2. However, the Organisation may waive its right to take action pursuant to such subrogation against the third party concerned where special circumstances justify such a waiver.

CHAPTER X: FINANCING THE PENSION SCHEME

Article 40 – Charge on budgets

1. Benefits paid under this Pension Scheme shall be charged to the budgets of the Organisation responsible for the assessment of these benefits pursuant to Article 31.

2. The Member States of the Organisation jointly guarantee the payment of the benefits.

3. In the event of a merger, reconstitution or other transformation or in the event of dissolution of the Organisation, the Council or any ad hoc body set up, where required in one of the aforementioned cases, shall take the necessary measures to ensure uninterrupted payment of the Pension Scheme benefits until the cessation of entitlement of the last beneficiary.

4. Should a country, being a Member or ex-Member of the Organisation, fail to comply with its obligations under this Article, the other countries shall meet the cost thereof in proportion to their contribution to the budget of the Organisation as fixed annually from and after the said country’s default.

Article 41 – Staff members’ contribution – costing the scheme ^{^[25]}

1. Staff members shall contribute to the Pension Scheme.

2. The staff members’ contribution to the Pension Scheme shall be calculated as a percentage of their salary and shall be deducted monthly.

3. The rate of the staff contribution shall be set so as to represent the cost, in the long term, of one-third of the benefits provided under these Rules.

4. The rate of the staff contribution shall be 9.5%.[26]

5. An actuarial study shall be carried out every five years for all the Organisations, using the method described in Annex. In accordance with the results of that study, the staff contribution rate shall automatically be adjusted, with effect from the fifth anniversary of the preceding adjustment, the rate being rounded to the nearest first decimal.

However, in the event of exceptional circumstances, the Co-ordinating Committee on Remuneration could recommend that the date of that study, and of any adjustment of the contribution rate resulting therefrom, be advanced.

In such a case, the normal five-year interval between two studies and any adjustment of contributions resulting therefrom shall begin as from the date of that supplementary study except for a new application of the provisions of the preceding sub-paragraph.

6. Contributions properly deducted shall not be recoverable. Contributions improperly deducted shall confer no right to pension benefits; they shall be refunded at the request of the staff member concerned or those entitled under him without interest.

CHAPTER XI: PROVISIONS RELATING TO ADJUSTMENT OF PENSIONS

Article 42 – Pensions which are subject to National Tax legislation [27]

1. The recipient of a pension under these Rules shall be entitled to the adjustment applying to the Member Country of the Organisation in which the pension and adjustment relating thereto are chargeable to income tax under the tax legislation in force in that country.

2. The adjustment shall equal 50% of the amount by which the recipient’s pension would theoretically need to be increased, were the balance remaining after deduction of the amount of national income tax or taxes on the total to correspond to the amount of the pension calculated in accordance with these Rules.

For such purpose, there shall be drawn up, for each Member country, in accordance with the Implementing Instructions referred to in paragraph 6, tables of equivalence specifying, for each amount of pension, the amount of the adjustment to be added thereto. The said tables shall determine the rights of the recipients.

3. In calculating the theoretical amount of income tax or taxes referred to in paragraph 2 of this Article, account shall be taken only of the provisions of tax legislation and regulations affecting the basis of liability and the amount of income tax or taxes for all pensioner-taxpayers in the country concerned.

Pensioners without spouse or dependants shall be deemed to be in the position of a pensioner without entitlement to any tax reliefs or allowances for family responsibilities, all other recipients being deemed to be pensioners enjoying the tax reliefs and allowances of a person who is married without children.

No account shall be taken:

· of individual factors related to the personal circumstances or private means of a particular pensioner,

· of income other than that arising under these Rules,

· of the income of the spouse or dependents of the pensioner.

On the other hand, account shall, in particular, be taken of circumstances arising in the course of the year as a result of:

· a change in civil status or settlement in another place of residence with a different taxation system,

· commencement or cessation of payment of the pension.

4. The Organisation shall supply the Member Countries concerned with the names, forenames and full address of pensioners and the total amount of the pension and adjustment.

5. The recipient of an adjustment as specified in this Article shall be required to inform the Organisation of his full address and of any subsequent change therein.

Such recipient shall produce evidence of his pension and the relative adjustment having been declared or taxed; should he fail to comply with this obligation, he shall be deprived of the right to this adjustment and shall refund any amounts unduly received in this respect.

6. The other procedures for calculating the adjustment and, in particular, those necessitated by the special features of certain national tax laws, and the procedure for payment of the adjustment shall be laid down in the Implementing Instructions established in accordance with the tax legislation of Member Countries.

Notwithstanding Article 52, the implementing provisions referred to in this paragraph shall require approval by the Councils of the Organisations listed in Article 1.1.

CHAPTER XII: TRANSITIONAL ARRANGEMENTS APPLICABLE TO STAFF WHOSE SERVICE BEGAN BEFORE 1 JULY 1974

SECTION 1: STAFF FORMERLY SUBJECT TO THE PENSION SCHEME INTRODUCED ON 1 JANUARY 1967

Article 43 – Credit for service

a. Service performed after 1 January 1967

1. Periods served after 1 January 1967 by staff members in service on 1 July 1974 shall in all cases be taken into account under the Pension Scheme established by these Regulations.

b. Service performed prior to 1 January 1967 and credited under the previous Pension Scheme

2. Periods of service prior to 1 January 1967 credited to staff under the Pension Scheme established by Resolution (66)39 shall in all cases be taken into account under the Pension Scheme established by these Regulations.

c. Service performed before 1 January 1967 and not credited to staff members under the previous Pension Scheme

3. Staff in service on the date of adoption of these Rules:

i) Staff members in service on the date of adoption of these Rules who renounced the right to be credited with service performed prior to 1 January 1967 under the Pension Scheme established by Resolution (66)39 may, if they so desire, revoke that decision and ask to be given credit for such service within the period of one year laid down in paragraph 7 i). This new option shall be irrevocable both for the staff member concerned and for the persons entitled in respect of him. It shall be made in the conditions laid down in Article 44 a.

ii) Should a staff member become incapacitated without having made the choice referred to in paragraph 3 i) above, he shall retain the option of claiming credit for service prior to 1 January 1967 within the period of one year laid down in paragraph 7 i).

iii) Should a staff member die without having exercised the option referred to in paragraph 3, his spouse or, in the event of the latter’s death, his orphans or other dependants may exercise the option referred to in sub-paragraph i) above but shall do so within the period of six months laid down in paragraph 7 ii).

iv) If the options described in the present paragraph are not exercised within the prescribed time-limits, the staff member or the persons entitled in respect of him shall be deemed to have maintained the option exercised under the Pension Scheme established by Resolution (66)39.

4. Staff who left the Organisation between 1 January 1973 and the date of adoption of these Rules.

i) Staff members who left the Organisation between 1 January 1973 and the date of adoption of these Regulations without having claimed credit for their service prior to 1 January 1967, may apply within the period of one year referred to in paragraph 7 i) to have all periods of service performed before the date on which they left the Organisation credited to them with a view to benefiting from the Pension Scheme established by these Regulations, with the exception of the leaving allowance.

ii) Such application shall be granted provided the staff member concerned refunds to the Organisation:

1. for the period before 1 January 1967: the amounts specified in Article 44 a,

2. for the period between 1 January 1967 and the date of departure: the amount of the allowance paid to him in accordance with Article16 of the Pension Scheme established by Resolution (66)39, less the amount to which he is entitled under Article 44 b.4.

5. Staff who left the Organisation between 1 January 1967 and 1 January 1973.

i) Staff who left the Organisation between 1 January 1967 and 1 January 1973 at the age of 60 or over after at least ten years’ service, without having claimed credit for their service prior to 1 January 1967, may apply within the period of one year referred to in paragraph 7.i) to have all periods of service performed before the date on which they left the Organisation credited to them with a view to benefiting from the Pension Scheme established by these Regulations, with the exception of the leaving allowance.

ii) Such application shall be granted provided the staff member concerned refunds to the Organisation:

1. for the period before 1 January 1967: the amounts specified in Article 44 a;

2. for the period between 1 January 1967 and the date of departure, the amount of the allowance paid to him in accordance with Article 16 of the Pension Scheme established by Resolution (66)39, plus compound interest at 4% per annum until 1 January 1973.

They shall, however, be granted a reduction on the amounts to be repaid, calculated in accordance with Article 49.2 of these Regulations.

d. Service for less than ten years

6. i) Staff who left the Organisation on reaching the statutory age-limit after 31 December 1966 without having performed ten years’ service may apply within the period of one year referred to in paragraph 7.i) for a proportional pension calculated according to the provisions of Article 10, subject to their having entered the service of the Organisation before 1 July 1974 and having claimed credit for all their service and refunded the amounts referred to in paragraphs 4 and 5 above respectively, in accordance with their date of departure.

ii) If the staff member referred to in sub-paragraph i) had already claimed credit for service prior to 1 January 1967, he shall be required when applying for a proportional pension to refund the leaving allowance paid to him plus compound interest at 4% per annum until 1 January 1973, subject to deduction where appropriate, of an abatement calculated in accordance with Article 49.2 of these Regulations.

iii) A staff member entering the service of the Organisation after 1 January 1967 but before 1 July 1974 and leaving it on reaching the statutory age-limit without having performed ten years’ service may also choose between the leaving allowance and a proportional pension.

e. Time-limits and coming into effect of options

7. i) The time-limits for options and applications laid down in this Article shall expire on 30 June 1978.

ii) However, in the cases of death referred to in paragraph 3.iii), the period during which the option may be exercised by the persons entitled in respect of the staff member shall be six months as from the date on which the Organisation has notified them of the Pension Scheme established by these Regulations.

Similarly, if the former staff member dies without making his application within the time-limit set in paragraphs 4.i), 5.i) and 6.i), the persons entitled in respect of him may do so within the six‑month period mentioned in this sub-paragraph.

iii) The options provided for in this section shall take effect on 1 July 1974; however, in the cases referred to in paragraphs 4, 5 and 6 the option shall take effect either on the date of award of benefits under the Pension Scheme or on the date on which the staff member leaves the Organisation if he is entitled to a deferred pension, but in no case earlier than 1 January 1973.

f. Credit for other periods of service

8. i) A staff member may also claim credit, within the period referred to in paragraph 7i) above, for periods of service performed in the Organisation prior to his appointment as a permanent official, in accordance with the provisions of Article 5.5 of these Regulations.

ii) A staff member who claims credit under these transitional arrangements for service performed in the Council of Europe prior to 1 January 1967 must also claim credit for all service performed as a permanent official elsewhere, in one or more of the Organisations referred to in Article 1.1 of these Regulations, on the conditions laid down in the regulations applicable to the said Organisations.

However, staff members who have already claimed credit for periods of service in the Council of Europe prior to 1 January 1967 in accordance with the Pension Scheme established under Resolution (66)39 shall not be required to claim credit for periods of service performed in other Organisations prior to the date of adoption of these Regulations.

Article 44 – Conditions for crediting periods of service performed prior to 1 July 1974

a. Service performed prior to 1 January 1967

1. A staff member credited with service performed prior to 1 January 1967 shall surrender his holding in the Provident Fund. However:

i) A staff member credited with service performed prior to the establishment of the Provident Fund shall retain the difference between: a. the amounts contributed by the Organisation as a severance allowance plus their yield and b. the aforesaid amounts, plus compound interest at 4% per annum.

If the said period of service has already been credited under Article 76 of the Pension Scheme Regulations established by Resolution (66)39, subject to payment of a contribution equal to 7% of the salary received in respect of such service, the staff member shall be entitled to have the said contribution refunded with interest at a rate equal to the return on investment in addition to the difference referred to in the preceding sub-paragraph.

ii) For any period of service between 1 January 1953 when the Provident Fund was established, and 1 January 1967 when the Pension Scheme established by Resolution (66)39 came into force, the staff member shall retain the difference between:

· his Provident Fund holding at 31 December 1966 plus compound interest at the rates equal to the return on investment, as fixed annually, and

· the amount corresponding to 21% of the salary received in respect of such service, plus compound interest at 4%.

If the staff member has already claimed credit for that period of service under Article 75 of the Pension Scheme Regulations established by Resolution (66)39, he shall be entitled to reimbursement of the difference referred to in this sub-paragraph ii).

iii) Returns on investments and compound interest as provided for in sub-paragraphs i and ii above shall be calculated:

· up to 1 July 1974 in the case of staff members in service at that date;

· up to the date on which benefits became payable in the case of staff members who retired between 1 January 1967 and 1 July 1974;

· up to the date on which the staff member left the Organisation if he was entitled to a deferred service pension prior to 1 July 1974;

· up to the date of death if it occurred before 1 July 1974.

2. The provisions of paragraph 1 above shall also apply to persons in receipt of pensions granted under the Pension Scheme Regulations established by Resolution (66)39.

They shall not apply to staff who, having claimed credit for service prior to 1 January 1967, left the Organisation before 1 July 1974 and received a leaving allowance under the Pension Scheme Regulations established by Resolution (66)39 unless the staff members in question are granted proportional pensions in accordance with Article 43.6 i) and ii).

3. i) Where a staff member has exercised his right to make withdrawals from his Provident Fund holding and where, in consequence, the amount standing to his credit is less than the amount he would have had to surrender under paragraph 1 if he had not made withdrawals, service prior to 1 January 1967 shall be credited only in the proportion these two amounts bear to each other.

ii) This provision shall not apply where a staff member has, within the period referred to in Article 43.7 i), undertaken to refund the difference between the two amounts plus compound interest at 4% per annum as from 1 July 1974.

If the staff member makes only partial repayment, past service shall be credited only in the proportion provided for in sub-paragraph i) above.

iii) Should a staff member become incapacitated or die without having exercised the option referred to in Article 43, the figure of 70% provided for in Article 14.2, as well as the minimum pensions provided for in Articles 14.4 and 19.3, shall be reduced in the proportion existing between:

· the total number of years of service reckonable – up to the statutory age-limit in the event of invalidity – allowing for the reductions provided for in this paragraph, and

· the total number of years of service that would have been credited if the staff member had been credited with all service performed prior to1 January 1967.

iv) The repayments referred to in this paragraph shall be effected within time-limits laid down in the rules for application of these Regulations.

b. Service performed after 1 January 1967

4. i) With regard to service performed between 1 January 1967 and 30 June 1974, a staff member shall be paid the difference between:

· his personal contributions for the period concerned plus compound interest at a rate equal to the return on the Pension Fund’s investments up to 30 June 1974, and

· the aforesaid contributions plus compound interest at 4% per annum up to the same date.

ii) However, the said difference shall not be payable to staff who left the Organisation before 1 January 1973.

Article 45 – Pension without credit for past service

i) A staff member who does not claim credit for service prior to 1 January 1967 shall be entitled to benefit under these Regulations only in respect of the period of service subsequent to that date.

ii) In the calculation of the minimum retirement pension referred to in Article 10.3, only the years served after 1 January 1967 shall be taken into account.

iii) If a staff member becomes incapacitated or dies while serving after the date on which these Rules are finally approved, the provisions of Chapters III to VI shall apply as appropriate.

Article 46 – Bonus for service after the age of 60

1. A staff member who did not leave the Organisation before 1 January 1973, who has chosen one of the options specified in Articles 43, 44 and 45 and who has continued to serve beyond the age of 60, shall, in respect of each year completed after that age, be entitled to an increase in pension corresponding to 5% of the reckonable years of service credited to him at the age of 60, but

i) the increase granted in respect of each year served after the age of 60 shall not exceed 2% of the salary defined in Article 10.1, and

ii) his total pension shall not exceed 70% of the salary so defined.

2. Within the same limit, pension rights shall continue to accrue as provided for in Article 10.1.

3. This article shall, in the case covered by Article 14.1, apply only in respect of actual service after the age of 60.

Article 47 – Compensation for loss of previous pension rights

A staff member who left the Organisation before 1 January 1973 may receive compensation by way of reckonable years of service under the conditions and within the limits laid down in the provisions implementing the Rules if he establishes that, by reason of having joined the Pension Scheme of the Organisation, he has been obliged to forfeit all or part of any pension rights that may have accrued to him previously in his country of origin, without being able to obtain the actuarial equivalent of such rights.

Article 48 – Application of the present regulations to pensions paid out of the Council of European Pension Fund

1. Pensions awarded under the Pension Scheme established by Resolution (66)39, shall be subject to the provisions in these Regulations as from the date on which they come into force.

If the amount of these pensions is changed, this change shall take effect as from 1 January 1973 or as from the date on which the aforesaid pensions were granted, if it is later.

2. However, persons in receipt of disablement, survivors’ or orphans’ pensions may choose, under the conditions laid down in paragraphs 3 and 4 below, between the application of Chapters III to VI inclusive of these Regulations and the continued application of Chapters III to VI inclusive of the Pension Scheme set up by Resolution (66)39.

3. If they have not claimed credit for service prior to 1 January 1967, persons in receipt of the pensions referred to in paragraph 2 above who choose the first option, that is the application of Chapters III to VI inclusive of these Regulations, shall be required to pay the amounts necessary for the crediting of this service in accordance with the conditions laid down in Article 44 a.

4. The option provided for in paragraph 2 above shall be exercised within the period of one year from the date on which the Organisation has informed those concerned of the provisions of these Regulations.

Should a beneficiary die before exercising his option, his dependants may exercise it within a period of six months as from the date on which the Organisation has notified them of the provisions contained in these Regulations.

In the absence of an option within the periods laid down the beneficiary or his dependants shall be deemed to have chosen the maintenance of the application of Chapters III to VI inclusive of the Pension Scheme set up by Resolution (66)39.

5. Article 46 of these Regulations shall not apply to the calculation of the pensions referred to under this article if the staff member left the Organisation before 1 January 1973.

SECTION 2: STAFF WHOSE SERVICE TERMINATED BEFORE 1 JANUARY 1967

Article 49 – Scope

1. As a transitional measure, the provisions of these Regulations shall, if so requested by them, apply to:

i) former staff members with not less than ten years’ service who left the Organisation at the age of 60 or more and their widows, incapacitated widowers and orphaned children;

ii) the widows, incapacitated widowers and orphaned children of staff members who died while serving;

iii) staff members permanently incapacitated while serving and their widows, incapacitated widowers and orphans, when the contingencies referred to in i), ii) and iii) occurred before 1 January 1967.

2. These beneficiaries shall, however, refund to the Organisation responsible for payment of benefits the Provident Fund holdings paid at the time of departure, death, or recognition as unfit for service. This refund shall include non-reimbursed withdrawals, under the conditions laid down in Article 44.3.

This refund shall be limited to the amount of contributions paid by the staff member and by the Organisation, plus compound interest at 4% per annum; such refund shall be abated, where applicable, by an amount calculated by means of the following fraction:

· numerator: the difference between the age of the staff member on 1 January 1973 and his age at the time of departure, death or recognition as unfit for service;

· denominator: the difference between 80 and the age of the staff member at the time of departure, death or recognition as unfit for service.

3. The request referred to in paragraph 1 above must be made within a period of one year from the date on which the Organisation notifies entitled persons of the Pension Scheme established by these Regulations, failing which the right to make it shall lapse. The benefits under this article shall be granted with effect from 1 January 1973.

4. Benefits under this article shall be calculated by reference to the staff member’s grading when he left the service before 1 January 1967, but on the basis of the corresponding scales in force on 1 January 1973, subsequently adjusted in accordance with Article 36.

5. Staff to whom this article applies shall not benefit under the provisions of Article 46.

SECTION 3: HARDSHIP ALLOWANCE

Article 50 – Hardship allowance

1. As an exceptional measure, when a staff member governed by the transitional arrangements is – or the persons claiming under him are – unable to make the refunds required under Article 44 or Article 49, he – or they – may, if the Secretary General considers this justified in the light of his – or their – overall income, be granted a hardship allowance. This allowance shall not exceed the amount of the minimum pension provided for in the Rules in respect of each category of beneficiary.

A hardship allowance may also be granted on grounds of low level income to the widowers of female staff members who died before 1 January 1979. In this case, any pension granted as the case may be to the children or other dependants shall be reduced to the amount laid down in Article 25.2.

2. The hardship allowance may only be granted as from the first day of the month following that in which the application is made, and in any event not earlier than 1 July 1974; it may not, however, be granted to a former staff member before he has reached the age of 60, unless he is incapacitated.

3. Detailed application of this Article will be governed by the instructions referred to in Article 52.

CHAPTER XIII: FINAL PROVISIONS

Article 51 – Co-ordination

These Rules must be applied in a uniform manner by the different Organisations listed in Article 1.1. To this end, the Secretaries (and Directors) General of those Organisations shall consult among themselves in order to carry out the appropriate co-ordination.

Article 52 – Detailed implementation

Instructions for the implementation of these Rules shall be drawn up by the Secretary General (Director General) of the Organisation.

Article 53 – Entry into force

These Rules shall enter into force on 1 July 1974.

Appendix to Article 41– actuarial studies of the Pension Scheme Rules [28]

Periodicity

At least every 5 years

Method

1. Calculation, as at the effective date of the study for all the organisations, of the rate of contribution payable by staff in order to finance one-third of benefits provided under the Scheme, establishing the present value of future entitlements and salaries.

2. Projections of annual amounts of future entitlements will be calculated, on the one hand, for the overall population of staff members at the date of the study and, on the other hand, for the population of staff members who will be recruited by the Co-ordinated Organisations in the years to come. Projections of salaries for these populations will also be established year by year. Each of these amounts will be discounted to present worth.

3. Combining these results will make it possible to determine the rate of contribution needed to finance one-third of benefits provided under the Scheme.

Demographic assumptions

4. The demographic assumptions are derived from detailed demographic studies for each of the Co-ordinated Organisations. These studies examine past experience over a period of fifteen years in tranches of five years so as to identify trends; they also take account of available forecasts regarding future numbers of staff.

5. The rates obtained are adjusted so as to eliminate distortions resulting from insufficient data in certain organisations.

Economic assumptions

6. The discounting process is based on observed rates of return on long-term bonds issued in the reference countries, as from the date when they become a reference country.

7. A discount rate net of inflation shall be used. It shall be equal to the arithmetical average of average real rates observed over the thirty years preceding the date when the actuarial study is conducted.

8. The average real rate for a given past year is obtained from the real rates in each country, calculated as the difference between the rate of gross return on bonds and the corresponding rate of inflation, as shown by the national consumer price index. The average is obtained by weighting the real rate in each country by the number of serving staff in that country at the effective date of the study.

Salary increase assumptions

9. The salary increase assumptions are derived for each organisation from an analysis of the past experience over a period of 15 years in tranches of five years so as to identify trends. They also take account of available forecasts in that respect.

[1]Note: As decided by the Ministers’ Deputies at their 818^th meeting of 27 November 2002 (CM/Del/Dec(2002)818/11.4), these rules apply to staff members recruited before 1 January 2003 and staff members who are not covered by the New Pension Scheme "NPS" (Appendix V bis to the Staff Regulations). They were first adopted by Resolution Res(77)11 of 20 April 1977 with effect from 1 July 1974. They were amended, inter alia, by Resolution Res(79)8 of 24 April 1979, which contains transitional provisions, and then incorporated in Resolution Res(81)20 of 25 September 1981. The text of Articles 1-39 was adopted by the Ministers’ Deputies at their 778^th meeting of 19 December 2001 (CM/Del/Dec(2001)778/11.7). The relevant decision, which entered into force together with its implementing regulations, contains transitional provisions. The numbering of paragraphs within articles has been harmonised in this version of Appendix V. A version with its implementing instructions has been published separately.

[2] Note: as amended by Decision (CM/Del/Dec(2012)1141/11.1), adopted by the Committee of Ministers on 3 May 2012 at the 1141th meeting of the Ministers’ Deputies, with effect from 1 July 2012 following EUMETSAT’s accession to the Co-ordinated system.

[3] Unless otherwise specified, the term “provisions laid down by Instruction” refers, throughout these Rules, to the implementation provisions in Article 52 of the Pension Rules.

[4]Note: as amended by Decision (CM/Del/Dec(2009)1045/11.2E), adopted by the Committee of Ministers on 14 January 2009 at the 1045^th meeting of the Ministers’ Deputies, with effect from 1 January 2009.

[5] 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.

[6]Note: as amended by Decision (CM/Del/Dec(2009)1045/11.2E), adopted by the Committee of Ministers on 14 January 2009 at the 1045^th meeting of the Ministers’ Deputies, with effect from 1 January 2009.

[7] Note: as amended by Decision (CM/Del/Dec(2011)1106/11.2E), adopted by the Committee of Ministers on 16 February 2011 at the 1106^th meeting of the Ministers’ Deputies, with effect from 16 February 2011.

[8] Refer to Article 33, paragraph 7.

[9] Note : as amended by Resolution CM/Res(2012)49 of 12 December 2012.

[10] Wherever it occurs in these Rules, the expression “surviving spouse” applies indifferently to the wife or husband of the deceased staff member.

[11] Note: as amended by Decision (CM/Del/Dec(2007)985/11.3), adopted by the Committee of Ministers on 31 January 2007 at the 985th meeting of the Ministers’ Deputies, with effect from 1 January 2007.

[12] Note : as amended by Resolution CM/Res(2012)49 of 12 December 2012, with effect from 1 April 2013.

[13] Note : as amended by Resolution CM/Res(2012)49 of 12 December 2012, with effect from 1 April 2013.

[14] Note: as corrected by Decision (CM/Del/Dec(2007)998/11.3b), adopted by the Committee of Ministers on 13 June 2007at the 998^th meeting of the Ministers’ Deputies.

[15] Note: as amended by Resolution CM/Res(2012)49 of 12 December 2012.

[16] Note: as amended by Resolution CM/Res(2012)49 of 12 December 2012.

[17] Note: before 1 January 2012: the Joint Pensions Administrative Section (JPAS).

[18] Note : as amended by Resolution CM/Res(2012)49 of 12 December 2012.

[19] Except for long term consultants of the ECMWF.

[20] Except for long term consultants of the ECMWF.

[21] Note: before 1 January 2012: the Joint Pensions Administrative Section (JPAS).

[22] Note: as amended by Decision (CM/Del/Dec(2001)778/11.7), adopted by the Committee of Ministers on 19 December 2001 at the 778^th meeting of the Ministers’ Deputies.

[23] On 19 December 2001, the Council of the Organisation approved the recommendation made in the Co-ordinating Committee’s 150th Report, paragraph 12 a) which, from that date, forms an integral part of Article 36 of the Pension Rules and reads as follows.

“Article 36 of the Pension Scheme Rules, relating to the arrangements for the adjustment of benefits, shall be interpreted, in all circumstances and whatever the current salary adjustment procedure, as follows: whenever the salaries of staff serving in the Co-ordinated Organisations are adjusted - whatever the basis for adjustment - an identical proportional adjustment will, as of the same date, be applied to both current and deferred pensions, by reference to the grades and steps and salary scales taken into consideration in the calculation of these pensions.”

[24] Note: before 1 January 2012: the Joint Pensions Administrative Section (JPAS).

[25]Note: as amended by Resolution Res(94)17 of 23 June 1994 with effect from 1 June 1994. See also Appendix to Article 41 – Actuarial studies, adopted by the Committee of Ministers on the same occasion.

[26] Note : as amended by Decision (CM/Del/Dec(2005)915/11.3), adopted by the Committee of Ministers on 9 February 2005 at the 915th meeting of the Ministers’ Deputies, with effect from 1 January 2005, by Decision (CM/Del/Dec(2009)1071/11.4a,b), adopted by the Committee of Ministers on 25 November 2009 at the 1071^st meeting of the Ministers’ Deputies, with effect from 1 January 2010 and by Decision (CM/Del/Dec(2014)1213/11.2), adopted by the Committee of Ministers on 26 November 2014 at the 1213^thmeeting of the Ministers’ Deputies, with effect from 1 January 2015.

[27] Note: the implementing Instructions of Article 42, also adopted by Resolution Res(77)11 of 20 April 1977, have been incorporated in Rule No. 1128 of 2 December 2002.

[28] Note : as amended by Resolution CM/Res(2009)44 of 25 November 2009.