Ministers' Deputies / Rapporteur Groups

GR-PBA
Rapporteur Group on Programme, Budget and Administration

GR-PBA(2014)15      24 October 2014[1]

 

Annotated agenda

Meeting of 6 November 2014

 

1.         Co-ordinating Committee on Remuneration (CCR)

a. Exchange of views with Ambassador Franz Cede, Chair of the CCR (10 a.m.)

(DD(2014)1213)

1.1.       In accordance with the group’s request at its meeting on 18 September 2014, Ambassador Franz Cede (Chair of the CCR) has been invited to an exchange of views with the group. The previous exchange of views with the Chair of the CCR took place at the GR-PBA meeting on 21 March 2013. This item will provide an opportunity to delegations to exchange views on any CCR-related matters.

b. Annual adjustment of remuneration of the staff of the co-ordinated organisations at 1 January 2015 – 231st report

(CM(2014)126 and CM(2014)126-add)

1.2.       In accordance with the salary adjustment method provided for in the Annex to the 211th Report of the CCR (CM(2012)52), adopted by the Deputies on 13 June 2012^[2], the CCR has submitted its recommendations on the salary adjustment for 2015 in its 231st report (CM(2014)126). The budgetary implications of the salary adjustment for 2015[3] have already been taken into account in the adjusted budget for 2015. The purpose of this item is the formal approval of the salary adjustment for 2015, as it results from the application of the method adopted in 2012, through the adoption of the draft decisions below.

1.3.       In this context, it is recalled that the adjustment of the remuneration of the staff automatically entails, at the same time and in the same conditions, an adjustment to the remuneration of allowances of specially appointed officials (under the terms of Article 2 of Resolution (71) 8 on the remuneration of specially appointed officials), pensioners and temporary staff as well as the judges of the Court and the Commissioner for Human Rights (in accordance with Article 3 of Resolution(2009)5 on the status and conditions of service of judges of the European Court of Human Rights).

1.4.       The GR-PBA is invited to examine this item, with a view to recommending the following draft decisions to the Deputies:

The Deputies, having regard to the recommendations set out in paragraph 4 of the 231st report of the Co‑ordinating Committee on Remuneration (CCR) (document CM(2014)126), concerning the adjustment of remuneration of the staff of the Co-ordinated Organisations, in so far as they concern the Council of Europe,

1.         agreed to adopt, with effect from 1 January 2015, the salary scales resulting from the application of the adjustment indices indicated in Annex 2 of the 231st report (the adjustment index for France being 2.1%), as shown in the tables for each state attached to that report, with the exception of the salary scales for B and C grade staff members for Belgium, France, Germany and Hungary which are replaced by the salary scales set out in document CM(2014)126-add;

2.         noted that, in accordance with Article 5, any special adjustment shall be deducted from the annual adjustment;

3.         noted that, in pursuance of Article 36 of the 132nd report (CM(2001)170-rev), pensions payable under Appendix V of the Staff Regulations will be adjusted in the same proportions and at the same date as the salary of staff in relation to which they are calculated;

4.         noted that, in accordance with the interpretation given to paragraph 3 of the 34th report by the CCG (CCG(65)5) dated 25 October 1965, at its 77th session on 29 June 1966 (cf. CCG/M(66)6), the salary of temporary staff serving in the Council of Europe will be adjusted in the same proportions as that of permanent staff;

5.         noted that under the terms of Article 3 of Resolution CM/Res(2009)5 on the status and conditions of service of judges of the European Court of Human Rights and of the Commissioner for Human Rights, the annual remuneration of judges and of the Commissioner for Human Rights will be adjusted in accordance with any adjustments made to salaries of staff members based in France;

6.         approved, with effect at 1 January 2015, the amounts of allowances and indemnities fixed in absolute value, adjusted in accordance with the procedure, set out in Annex 4 to the 231st report of the CCR;

7.         adopted Resolution CM/Res(2014)... on the revision of the Regulations governing staff salaries and allowances, as it appears at Appendix ... to the present volume of Decisions; (Appendix 1)

8.         adopted Resolution CM/Res(2014)... on the remuneration of specially appointed officials, as it appears at Appendix ... to the present volume of Decisions. (Appendix 2)

c. Review of the system of the installation allowance – 229th Report

(CM(2014)99 and CM(2014)133)

1.5.       In its 229th report (CM(2014)99), the CCR recommended a modified system for the installation allowance paid to eligible staff members of the Co-ordinated Organisations, with effect from 1 January 2015. The proposed changes aim inter alia at reducing installation costs.

1.6.       The main recommended changes concern:

- the amount of the installation allowance: this amount would now be subject to a ceiling (cf. CM(2014)99, Appendix I), which would be reassessed every three years;

- the introduction of supplements for mobility and for a change in geographical zone, which would be set at the Co-ordinated Organisations’ discretion up to a maximum of 75% of the basic amount. The Secretary General proposes to the Committee of Ministers to set this rate at 75 %, with a view to maintaining the Organisation’s attractiveness as employer and to encouraging mobility among its staff;

- the possibility to introduce transitional measures, over a period of four years, for serving staff members transferred to another duty station within the same Co-ordinated Organisation. The Secretary General accordingly proposes that the previous system of installation allowance shall continue to apply to this category of staff members until 31 December 2018.

1.7.       The necessary amendments to the Staff Regulations for the implementation of the CCR recommendation are presented in document CM(2014)133.

1.8.       The group is invited to examine this item, with a view to recommending that the Deputies adopt the following draft decisions at their 1213th meeting (26 November 2014), without further debate:

            The Deputies

1.         took note of the 229th report of the Co-ordinating Committee on Remuneration (CCR) on the review of the system of the installation allowance, as it appears in document CM(2014)99;

2.         adopted Resolution CM/Res(2014)… amending Article 8 of the Regulations governing staff salaries and allowances (Appendix IV to the Staff Regulations), as it appears at Appendix ... to the present volume of Decisions; <Part II, document CM(2014)133>

3.         noted that the ceilings on the basic amount of the installation allowance shall be adjusted in accordance with Articles 7 and 8 of the Annex of the 229th CCR Report (CM(2014)99).

d. Review of the system of the daily subsistence allowance – 228th Report

(CM(2014)105)

1.9.       The Rules governing the daily subsistence allowance (DSA) paid to staff members of the Co-ordinated Organisations travelling on duty are set out in the 189th Report of the Co-ordinating Committee on Remuneration (cf. CM(2008)149).

1.10.     In its 228th Report (cf. CM(2014)105), the CCR recommended a revision of the system of the DSA. The CCR considers that its proposal will lead to savings due to the significant change of the calculation method for the daily subsistence allowance. The exact level of savings generated by the changes in the system depends on the revised amounts of the daily subsistence allowance, which are in the process of being approved by the CCR.

1.11.     The new system would introduce a number of modifications to the current system, with regard inter alia to:

- the levels of the allowance: new rates defined by reference to the average of the daily subsistence rates in force in the national civil services of the eight reference countries^[4]. Compared to the current method, where the levels of the allowance are based on a comparison between the levels in force in the Co-ordinated Organisations and the rates obtained from the following sources: the United Nations system, a consultant specialised in studies on cost of living and a company offering electronic booking of hotel reservations, the new method would abandon any reference to international comparators;

- the adjustment of the rates: every three years (currently every year);

- the reimbursement of accommodation costs: the CCR recommends that they are reimbursed on the basis of actual expenditure, within the limit of 60% of the DSA (currently lump-sum reimbursement upon submission of an invoice). However, the CCR recognised that introducing a real-cost system for the reimbursement of accommodation costs might create management difficulties and additional costs in some Co-ordinated Organisations. It agreed as a compromise that, subject to approval by the appropriate committees, the discretion would be left to the Co-ordinated Organisations to introduce another less expensive system, also with a compulsory submission of invoices.

Changing the current system to a system of reimbursement on the basis of actual expenditure for accommodation costs would require complementary developments in the Organisation’s travel management application, and would imply an additional burden on the administrative workload in terms of further controls. On the other hand, since the DSA is likely to decrease for most destinations, the potential saving between the actual expenditure and the lump sum currently reimbursed would reduce. In addition, it can be expected that accommodation costs will be at levels close to the ceiling set by the DSA, thus further reducing the savings potential. Consequently, the Secretary General proposes to maintain lump-sum (flat-rate) reimbursement of hotel costs upon submission of an invoice and to complete a cost-benefit analysis of a possible change of the system during 2015.

1.12.     The group is invited to examine this item, with a view to recommending that the Deputies adopt the following draft decisions at their 1213th meeting (26 November 2014), without further debate:

            The Deputies

1.         took note of the 228th report of the Co-ordinating Committee on Remuneration (CCR) on the system of the daily subsistence allowance, as it appears in document CM(2014)105;

2.         approved the rules for the adjustment of the daily subsistence allowance for staff travelling on duty, as they appear in the Annex to the 228th Report (CM(2014)105), and consequently decided that these rules would replace the rules set out in the Annex of the 189th Report of the CCR (CM(2008)149), with effect from 1 January 2015;

3.         decided, in accordance with Article 1.2 of the said rules, that accommodation costs shall be reimbursed on a flat-rate basis, upon submission of an invoice;

4.         noted that the Secretary General would complete a cost-benefit analysis of a possible change of the system during 2015.

e. Review of the system of the kilometric allowance – 227th Report

(CM(2014)104)

1.13.     The Rules for the calculation of the amounts of the kilometric allowance paid to staff travelling on duty by private car are set out in the 49th Report of the Co-ordinating Committee on Remuneration (cf. CM(95)55). In its 227th Report (cf. CM2014)104), the CCR recommended a revision of the system of the kilometric allowance. The new system would significantly modify, inter alia, the adjustment method of the allowance: the current annual adjustment based on the trend in the private transportation element of the consumer price index would be replaced with an adjustment every three years based on the trend of the average kilometric allowance rates in force in the national civil services of the eight reference countries. In addition, the CCR recommends that the allowance rates in force in the Co-ordinated Organisations at 1 January 2014 be frozen until their level is reached by the average of the amounts for the kilometric allowance rates in force in the reference countries.

1.14.     The group is invited to examine this item, with a view to recommending that the Deputies adopt the following draft decisions at their 1213th meeting (26 November 2014), without further debate:

            The Deputies

1.         took note of the 227th report of the Co-ordinating Committee on Remuneration (CCR) on the system of the kilometric allowance, as it appears in document CM(2014)104;

2.         approved the rules for the calculation of the amounts of the kilometric allowance paid to staff travelling on duty by private car, as they appear in the Annex to the 227th Report (CM(2014)104), and consequently decided that these rules would replace the rules set out in Annex I to the 49th Report of the CCR (CM(95)55), with effect from 1 January 2015.

2.         Staff Regulations – Pensions schemes

2.1.       Permanent staff of the Council of Europe are covered by one of the three following pension schemes:

a. staff recruited either before 1 January 2003 or under the special procedures provided for in Resolution Res(2002)4^[5] are affiliated to the Co-ordinated Pension Scheme governed by the CCR's 132nd report^[6] (Appendix V to the Staff Regulations);

b. staff recruited after 1 January 2003 (other than under the special procedures provided for in Resolution Res(2002)4) are affiliated to the New Pension Scheme (NPS)^[7] (Appendix V bis to the Staff Regulations);

c. staff recruited on or after 1 April 2013 are affiliated to the Third Pension Scheme (TPS)[8] (Appendix V ter to the Staff Regulations).

For information, as at 30 June 2014, 1065 staff members (49.7%) were affiliated to the Co-ordinated scheme, 983 staff members (45.9%) to the New Pension Scheme and 95 staff members (4.4%) to the Third Pension Scheme.

2.2.       The rules of each of the three schemes[9] provide that the staff contribution rates shall be reviewed every five years on the basis of an actuarial study and the rates adjusted accordingly. The next adjustment is due to take place on 1 January 2015.

a. Co-ordinating Committee on Remuneration (CCR) – Review of the staff contribution rate to the Co-ordinated Pension Scheme – 230th Report

(CM(2014)106)

2.3.       Full details on this review are set out in the 230th CCR report (cf. CM(2014)106). The implementation of the method results in an increase of 0.5% in the contribution rate of staff members affiliated to the Co-ordinated Pension Scheme, from 9% to 9.5%.

b. Review of the staff contribution rate to the New Pension Scheme (NPS) – Technical opinion of the Administrative Committee on pensions of the co-ordinated organisations (CAPOC)

(CM(2014)106-add)

2.4.       Full details on this review are set out in the technical opinion of the CAPOC (cf. CM(2014)106-add). The implementation of the method results in an unchanged contribution rate (9.3%) of staff members affiliated to the New Pension Scheme.

c. Review of the staff contribution rate to the Third Pension Scheme –

Administrative Committee on pensions of the co-ordinated organisations (CAPOC)

(CM(2014)106-add2)

2.5.       Full details on this review are set out in the technical opinion of the CAPOC (cf. CM(2014)106-add2). The implementation of the method results in an increase of 0.3% in the contribution rate of staff members affiliated to the Third Pension Scheme, from 9.1% to 9.4%.

2.6.       In light of the above, the GR-PBA is invited to examine this item with a view to recommending that the Deputies adopt the following draft decisions at their 1213th meeting (26 November 2014), without further debate:

The Deputies

With regard to the Co-ordinated Pension Scheme (Appendix V to the Staff Regulations)

1.            took note of the 230th report of the Co-ordinated Committee on Remunerations (CCR) as it appears in document CM(2014)106;

2.            agreed that the rate of contribution of staff affiliated to the Co-ordinated Pension Scheme (Appendix V to the Staff Regulations) shall be increased to 9.5% of basic salary, with effect from 1 January 2015;

3.            amended accordingly Article 41, paragraph 4 of the Pension Scheme Rules (Appendix V to the Staff Regulations) and replaced the figure 9.0% by the figure 9.5%, with effect from 1 January 2015;

With regard to the New Pension Scheme “NPS” (Appendix V bis to the Staff Regulations)

4.            took note of the technical opinion of the Administrative Committee on pensions of the co-ordinated organisations concerning the method of calculating the rate of contribution to the New Pension Scheme, as it appears in document CM(2014)106-add;

5.            agreed that the rate of contribution of staff affiliated to the New Pension Scheme “NPS” (Appendix V bis to the Staff Regulations) would remain unchanged at 9.3% of the basic salary;

6.            agreed to retain Article 41, paragraph 3 of the Rules of the New Pension Scheme “NPS” (Appendix V bis to the Staff Regulations) unchanged;

With regard to the Third Pension Scheme “TPS” (Appendix V ter to the Staff Regulations)

7.            took note of the technical opinion of the Administrative Committee on pensions of the co-ordinated organisations concerning the method of calculating the rate of contribution to the Third Pension Scheme, as it appears in document CM(2014)106-add2;

8.            agreed that the rate of contribution of staff affiliated to the Third Pension Scheme “TPS” (Appendix V ter to the Staff Regulations) shall be increased to 9.4% of basic salary, with effect from 1 January 2015;

9.            amended Article 41, paragraph 3 of the Third Pension Scheme Rules “TPS” (Appendix V ter to the Staff Regulations) to take account of the above decisions, accordingly replaced the figure 9.1% by the figure 9.4% and replaced the sentence “This rate shall be reviewed on 1st January 2015 and thereafter every five years or whenever necessary, on the basis of an actuarial study, the procedures for which are appended hereto” by the following sentence: “This rate shall be reviewed every five years or whenever necessary, on the basis of an actuarial study, the procedures for which are appended hereto”.

3.         Pension Reserve Fund – Investment strategy and exchange of views with Mr. Thomas Weinberg, Chair of the Management Board

(CM(2014)135)

3.1.       It is recalled that, in July 2012, the Deputies invited the Management Board to review the general policies, goals and guidelines for investment of the assets of the Fund and make proposals with a view to enhancing the performance of the Fund (cf. CM/Del/Dec(2012)1147/11.3). The Management Board’s conclusions in this respect are set out in document CM(2014)4. The Management Board recommended in particular to modify the strategic asset allocation (SAA) and to allow for a more flexible Socially Responsible Investment (SRI) policy.

3.2.       Following the initial examination of this item by the GR-PBA at its meeting of 4 February 2014, the Deputies invited the Budget Committee to examine the recommendations of the Management Board in this respect and to report back to the GR-PBA[10]. At its June 2014 session, the Budget Committee examined the Strategic Asset Allocation and the alternative Socially Responsible Investment Strategy proposed by the Management Board. The Budget Committee’s comments – including five options – are set out in document CM(2014)86. Subsequently, the Deputies agreed to refer these comments to the Management Board for further consideration, with a view to resuming consideration of this matter at a later stage[11].

3.3.       Consequently, at its meeting of 29 September 2014, the Management Board of the Pension Reserve Fund examined the five options proposed by the Budget Committee. Among the five options, the Management Board considered that the first option (i.e. the Management Board’s original proposal) should be considered as optimal as it allows keeping the 5.0% long-term target of return with a reasonable risk; the Fund could therefore be sustainable without increasing member States’ contributions. The other options seem either too risky or not sustainable, or would entail a sharp increase in member States’ contributions. The detailed response of the Management Board on each of the five options has been distributed in document CM(2014)135.

3.4.       Following an exchange of views with Mr Thomas Weinberg, Chair of the Management Board, who will briefly present the response of the Management Board, the group will be invited to examine this item with a view to recommending to the Deputies the adoption of the following draft decisions at their 1213th meeting (26 November 2014), without further debate:

            The Deputies

1.         took note of the response of the Management Board of the Pension Reserve Fund to the comments of the Budget Committee, as it appears in document CM(2014)135, and consequently

2.         approved the conclusions of the Management Board of the Pension Reserve Fund as regards the Strategic Asset Allocation and the alternative Socially Responsible Investments (SRI) strategy, as they appear in the second three-year review (document CM(2014)4).

4.         Extension of the jurisdiction of the Administrative Tribunal to other international governmental organisations - Draft agreement with the Central Commission for the Navigation of the Rhine

(CM(2014)132)

4.1.       It is recalled that, at their 1202nd meeting (11 June 2014), the Deputies adopted Resolution CM/Res(2014)4 amending the Statute of the Administrative Tribunal, so as to permit the extension of its jurisdiction to the examination of disputes between other international governmental organisations and their personnel, following an expression of interest from the Central Commission for the Navigation of the Rhine (CCNR). In accordance with that Resolution, the Secretary General has submitted in document CM(2014)132 a draft agreement with the CCNR. The draft agreement provides inter alia that all financial costs entailed by the implementation of this agreement will be borne entirely by the CCNR.

4.2.       The group is invited to examine this item, with a view to recommending that the Deputies adopt the following draft decision at their 1213th meeting (26 November 2014), without further debate:

The Deputies authorised, in accordance with Resolution CM/Res(2014)4, the Secretary General to sign the draft agreement with the Central Commission for the Navigation of the Rhine, as it appears in the Appendix to document CM(2014)132.

5.         Long-term budgetary sustainability and efficiency of the Organisation (continued)

(SG/Inf(2014)25, GR-PBA(2014)10, GR-PBA(2014)17)

5.1.       It is recalled that, in accordance with the “roadmap” informing the next stages of discussion on the long-term budgetary sustainability and efficiency of the Organisation (cf. GR-PBA(2014)10), the group examined the issue of extra-budgetary resources at its meeting on 9 October 2014.

5.2.       The group is now invited to examine the issues listed below:

- Measures to increase financial and budgetary flexibility to respond to urgent and important developments (cf. GR-PBA(2014)17);

- Budget scenarios and implications for future funding models (cf. GR-PBA(2014)16);

- Measures to enhance efficiency and effectiveness: the Secretariat will give a progress report on measures to enhance performance culture (i.e. current upgrading of RBB and PMM). A comprehensive document on optimising internal processes (efficiencies and synergies) will be distributed at a later stage.

5.3.       This item provides an opportunity for delegations to present their views and draw any relevant conclusions on this topic.

6.         Any other business

-

7.         Date of the next meeting

To be confirmed

Appendix 1

Resolution CM/Res(2014)..

on the revision of the tables appended to the Regulations governing staff salaries and allowances

(Adopted by the Committee of Ministers on … November 2014
at the 12..th meeting of the Ministers' Deputies)

The Committee of Ministers, under the terms of Article 16 of the Statute of the Council of Europe,

Having regard to Resolution (81) 18 on the Regulations governing staff salaries and allowances, and to Resolution (81) 20 on the Council of Europe's Staff Regulations incorporating the Regulations governing salaries and allowances as Appendix IV to the said Regulations;

Having regard to the 231st report of the Co-ordinating Committee on Remuneration (CM(2014)126 and CM(2014)126-add);

Whereas the Regulations governing salaries and allowances of Council of Europe staff (Appendix 4 to the Staff Regulations) need to be revised;

Having regard to the decisions taken at the 12..th meeting of the Ministers’ Deputies;

On the proposal of the Secretary General,

Resolves as follows:

Single article:

The relevant tables appended to the Regulations governing staff salaries and allowances (Appendix 4 to the Staff Regulations), setting out the basic salary scales and other elements of remuneration, are replaced, with effect from 1 January 2015, by the tables applicable to Council of Europe Secretariat staff which are appended to the 231st report of the Co-ordinating Committee on Remuneration (CM(2014)126), with the exception of the salary scales for B and C grade staff members for Belgium, France, Germany and Hungary which are replaced by the salary scales set out in document CM(2014)126-add.

Appendix 2

Resolution CM/Res(2014)..

on the remuneration of specially appointed officials

(Adopted by the Committee of Ministers on .. November 2014
at the 12..th meeting of the Ministers' Deputies)

The Committee of Ministers, under the terms of Article 16 of the Statute of the Council of Europe,

Having regard to Resolution (71) 8 on the remuneration of specially appointed officials of the Council of Europe, as last amended by Resolution CM/Res(2011)51;

Having regard to the decisions taken at the 12..th meeting of the Ministers' Deputies;

Whereas, as a result of that decision, and in accordance with Article 2 of Resolution (71) 8 referred to above, new basic salary scales for the specially appointed officials of the Council of Europe need to be established,

Resolves as follows:

Single article:

The basic annual salaries laid down in Article 1, paragraph (a), of Resolution (71) 8, as last amended by Resolution CM/Res(2010)51, shall be adjusted as follows with effect from 1 January 2015:

-           Secretary General: €198 479.23;

-           Deputy Secretary General and Secretary General of the Assembly having the rank of Deputy Secretary General: €187 846.42.