september 2008 staff meeting 1 act 1: public meeting making a successful transition! making a...

September 2008 Staff meeting 1

Act 1Act 1: : Public meetingPublic meeting

Making a successful Making a successful transition!transition!

23 September 200823 September 2008


LHC LHC - First - First congratulations !congratulations !


Health insurance Health insurance - CHIS -- CHIS - Towards a financial imbalanceTowards a financial imbalance

Pension Fund Pension Fund - PF -- PF - Decision - June 08: Decision - June 08: is CERN Council assuming its is CERN Council assuming its

responsibilities?responsibilities? Technical studies in progressTechnical studies in progress

Transition to IPSAS accounting standardsTransition to IPSAS accounting standards Merit appraisal and recognition Merit appraisal and recognition - MARS & LHC -- MARS & LHC -

Results of the last exerciseResults of the last exercise And tomorrow, what will be the advancement budget?And tomorrow, what will be the advancement budget?

General Information General Information 5YR-2005/06 : 5YR-2005/06 : working time, administrative circulars , long-working time, administrative circulars , long-

term SLS, indexation term SLS, indexation of salariesof salaries Appeals: Appeals: salaries, pensions, contractssalaries, pensions, contracts

Departmental meetings Departmental meetings

SummarySummary


September 2007 Staff meeting23

Long-Term Care (LTC) – update

Technical study – Vuillemin Group

Actuarial review:The actuary considers it possible:

to increase accommodation allowance from 85 to 100 CHF from Jan. 2008 in order to cover 50% of the average real costs in Switzerland

to set an objective for an annual revaluation of the allowance at least equalto the average increase in salaries and pensions

Where has the capital gone? Capital accumulated since 2001: ≈ 45MCHF

net return expected to be 4%, but in reality… currently mixed in with the accounts of the Organization→ legal advice sought by SA on the ownership of these funds→ if necessary, we will have to go and get OURmoney!

Long-Term Care Long-Term Care – Sept. 07– Sept. 07

CHISCHIS - Reminder - Reminder

daily allowance: daily allowance: • increased

(85 → 100 CHF)• adjusted by DG

(= 50% of the costs in a Swiss EMS)


« « We’ve f(o)und our money! » We’ve f(o)und our money! » – Echo 17 – Echo 17 Dec. 07Dec. 07

Creation of a fund of 93 MCHF composed ofCreation of a fund of 93 MCHF composed of Reserve for the long-term care schemeReserve for the long-term care scheme Reserve for the general HIS, of which:Reserve for the general HIS, of which:

Variations from year to year Variations from year to year 6 MCHF 6 MCHF (≈ 10% of annual expenditure)(≈ 10% of annual expenditure)

Catastrophic risk Catastrophic risk 20 MCHF 20 MCHF (≈ 33% of annual expenditure)(≈ 33% of annual expenditure)

Expenditure committed, but not yet reimbursedExpenditure committed, but not yet reimbursed12 MCHF 12 MCHF (≈ 20% of annual expenditure)(≈ 20% of annual expenditure)

Invested in two investment funds Invested in two investment funds (20% equities, 80% (20% equities, 80% bonds)bonds)

CHIS accounts separated from those of the CHIS accounts separated from those of the OrganizationOrganization

CHISCHIS - Reminder - Reminder


Actuarial review 2007: financial Actuarial review 2007: financial imbalance from 2010imbalance from 2010

Latest newsLatest news

11stst semester 2008 semester 2008 negative balance negative balance

(expenditure: (expenditure: ++10%)10%) imbalance imbalance

foreseen from foreseen from 2008 2008

CHISCHIS – Financial – Financial situationsituation

20102010


CHISCHIS – Financial – Financial situationsituation Imbalance : what to do for the time being?Imbalance : what to do for the time being?

Strong annual fluctuations are nothing newStrong annual fluctuations are nothing new

-6

-4

-2

0

2

4

6

8

10

12

1996 1998 2000 2002 2004 2006 2008

evo

luti

on

[%

] fr

om

o

ne

ye

ar

to t

he

ne

xt

Years

Evolution of average cost

ageing

medical inflation

total

Reserve funds are foreseen to deal with the situation Reserve funds are foreseen to deal with the situation (+10% ≈ 6 MCHF)(+10% ≈ 6 MCHF)

CHIS will be a topic of the next 5YR - 2010CHIS will be a topic of the next 5YR - 2010


CHISCHIS – Ensure the future of – Ensure the future of our schemeour scheme 1st step achieved : 1st step achieved : creation of a capitalized fund creation of a capitalized fund

– 93 MCHF– 93 MCHF 5YR–20105YR–2010

Obtain the implementation of two Obtain the implementation of two recommendations by the actuaryrecommendations by the actuary

Smooth the increase in costs due to ageing by an Smooth the increase in costs due to ageing by an annual increase of 1% of the contribution rate annual increase of 1% of the contribution rate (Organization + contributing members):(Organization + contributing members):10% 10% 10,1% 10,1% 10,2% … 10,2% …

If medical inflation increases more rapidly than If medical inflation increases more rapidly than salaries and pensions, the differential should be added salaries and pensions, the differential should be added to the increase in contribution rateto the increase in contribution rate

CHIS Board : CHIS Board : subgroup “Future of the Scheme”subgroup “Future of the Scheme”Your opinion interests us : SA survey Your opinion interests us : SA survey - Oct. 08- Oct. 08

Reminder : Reminder : CHIS = Mutual benefit and support CHIS = Mutual benefit and support schemescheme

For each franc spent, half is paid by the For each franc spent, half is paid by the contributing member contributing member

Making savings for the scheme means making savings for ourselves !



Pension Fund Pension Fund - PF -- PF - Decision - June 08: Decision - June 08: is CERN Council assuming its is CERN Council assuming its

responsibilities?responsibilities? Technical studies in progressTechnical studies in progress

Transistion to IPSAS accoutning standardsTransistion to IPSAS accoutning standards Merit appraisal and recognition Merit appraisal and recognition - MARS & LHC -- MARS & LHC -

Results of the last exerciseResults of the last exercise And tomorrow, which advancement budget?And tomorrow, which advancement budget?

General information General information 5YR 2005/06: working time, administrative circulars, long-5YR 2005/06: working time, administrative circulars, long-

term SLS, indexation of salariesterm SLS, indexation of salaries Appeals: salaries, pensions, contractsAppeals: salaries, pensions, contracts


SummarySummary


PensionsPensions – Balance of our – Balance of our FundFund


50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

110.0%

06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Year

Funding ratio - projection over the next 30 years

Impact of reduction factor for start > 1.7.87 Impact of under-indexation of pensions Employee share 0.76pp increase of contribution Employer's share 0.76pp increase of contribution

Model from actuarial study 2007

pens

ione

rs

CERN

Pensioners+

STAFF

ECHO n°52

PensionsPensions – Balance of our – Balance of our FundFund Actuarial review 2007 : Actuarial review 2007 : which recommendation which recommendation

by the GBPF?by the GBPF?


PensionsPensions – Balance of our – Balance of our FundFund


Pension FundPension Fund

Active

membersCERN

Markets

Paid pensionsPaid pensions

Taxation of pensionsTaxation of pensions – current – current situationsituation

TaxBeneficiaries

Residence1 FR 55%2 CH 34%3 DE 3%4 UK 1.5%


Internal

TaxationPension FundPension Fund

Active

membersCERN

Paid pensionsPaid pensions

TaxBeneficiaries XResidence

1 FR 55%2 CH 34%3 DE 3%4 UK 1.5%

Markets

Taxation of pensionsTaxation of pensions – for – for tomorrow?tomorrow?


PensionsPensions – Technical studies – Technical studies in progressin progress GBPF GBPF – WG2 – WG2 : : funding policy and principlesfunding policy and principles

Objective: 125% in 20 years

SA:only realistic scenario

=Internal taxation



Pension Fund - PF -Pension Fund - PF - Decision - June 08: is CERN Council assuming its responsibilities?Decision - June 08: is CERN Council assuming its responsibilities? Technical studies in progressTechnical studies in progress


Results of the last exerciseResults of the last exercise And tomorrow, which advancement budget?And tomorrow, which advancement budget?

General information General information 5YR 2005/06: working time, administrative circulars, long-term SLS, 5YR 2005/06: working time, administrative circulars, long-term SLS,

indexation of salariesindexation of salaries Appeals: salaries, pensions, contractsAppeals: salaries, pensions, contracts


SummarySummary


IPSAS IPSAS – new main budget items related – new main budget items related to the staffto the staff Paid leavePaid leave

The accumulated present value to be paid in the future to The accumulated present value to be paid in the future to staff members when they will be absent for annual, saved or staff members when they will be absent for annual, saved or compensation leave reasonscompensation leave reasons

Post-employment benefitsPost-employment benefitsEstimatedEstimated actuarial liability towards employed and retired actuarial liability towards employed and retired members of the CERN personnelmembers of the CERN personnel

provisionprovision

CERN/2787CERN/2787

CERN/2787CERN/2787





Results of last exerciseResults of last exercise And tomorrow, what will be the advancement budget?And tomorrow, what will be the advancement budget?

General information General information 5YR 2005/06: working time, administrative circulars, long-term SLS, 5YR 2005/06: working time, administrative circulars, long-term SLS,

indexation of salariesindexation of salaries Appeals: salaries, pensions, contractsAppeals: salaries, pensions, contracts

Departmental meetingsDepartmental meetings

SummarySummary


MARS 2008MARS 2008 - - results / career pathresults / career path


MARS 2008MARS 2008 – steps / population– steps / population

guidelinesCCP-2008/4grouping


LHC LHC Oct. 08Oct. 08 – results / career path– results / career path Reminder: exercise without SCC guidelinesReminder: exercise without SCC guidelines


2007 & 2008 2007 & 2008 - steps / - steps / populationpopulation

MARS 08 + LHC Oct. 08≈

Exercise 2007


MARS 2008MARS 2008 Global use of Advancement & Financial Awards budgetsGlobal use of Advancement & Financial Awards budgets Use of budgets per career pathUse of budgets per career path Percentage of « periodic only »Percentage of « periodic only »

LHC Oct. 08LHC Oct. 08 Global use of Advancement & Financial Awards budgetsGlobal use of Advancement & Financial Awards budgets Use of budgets per career path: bias observedUse of budgets per career path: bias observed

2007-2008 : objectives reached with difficulty 2007-2008 : objectives reached with difficulty thanks to additional budget in 2007 (5YR-05) and 2008 thanks to additional budget in 2007 (5YR-05) and 2008 (LHC)(LHC)

Without additional budget, this shortfall must be managedWithout additional budget, this shortfall must be managed From 2009 : Additional budget From 2009 : Additional budget is needed so that the is needed so that the

merit of each person can be adequately recognizedmerit of each person can be adequately recognized

X

Merit recognition Merit recognition – 2 years later…– 2 years later…





Results of last exerciseResults of last exercise And tomorrow, which advancement budget?And tomorrow, which advancement budget?

General information General information 5YR-2005/06 : 5YR-2005/06 : working time, administrative circulars, working time, administrative circulars,

long-term SLS, indexation of salarieslong-term SLS, indexation of salaries Appeals : Appeals : salaries, pensions, contractssalaries, pensions, contracts


SummarySummary


Administrative CircularsAdministrative Circulars

What progress has been made?What progress has been made? AC 4 : Unemployment insuranceAC 4 : Unemployment insurance AC 12A, AC 12B : Education feesAC 12A, AC 12B : Education fees AC 26 : Recognition of merit of Staff membersAC 26 : Recognition of merit of Staff members AC 30 : Indemnities and reimbursements on AC 30 : Indemnities and reimbursements on

arrival/departurearrival/departure

Working timeWorking time Overtime, stand-by duty, shift workOvertime, stand-by duty, shift work Chap.III : approved by CERN Council in June Chap.III : approved by CERN Council in June

20082008 AC : being draftedAC : being drafted


Saved Leave SchemeSaved Leave Scheme Short-term Saved Leave:Short-term Saved Leave: « STSL » « STSL » in existence since in existence since

Jan. 08Jan. 08 Ceiling on 30 SeptemberCeiling on 30 September

Annual leave: 30 daysSTSL : 22 j

Tacit renewal Tacit renewal « Participation in the short-term saved leave scheme may be modified at the request of the staff member or of his hierarchy at the end of the 12 months subject to a two-month notice period . »

Long-term SLS : Long-term SLS : early retirementearly retirement The DG had promised to study the conditions for this The DG had promised to study the conditions for this

new system before the end of 2007, with new system before the end of 2007, with implementation in 2008, if an agreement is reached at implementation in 2008, if an agreement is reached at SCC.SCC.

With no agreement reached, discussions will start up With no agreement reached, discussions will start up again with the next Management.again with the next Management.

52 days max. on « annual leave » account


Indexation of salaries Indexation of salaries – Evolution – Evolution since 2001since 2001

RNM > 0RNM > 0

+4,2%

RNM < 0RNM < 0

+3,2%

RNM = average movements of the real net salaries of civil servantsRNM = average movements of the real net salaries of civil servantsLong-term hypothetical indexation = +2% / yrLong-term hypothetical indexation = +2% / yr


Indexation des salaires Indexation des salaires – au 1– au 1erer janvier 2009janvier 2009


Appeals Appeals – on three topics– on three topics

Salaries (5YR-2005), Contract policy, Salaries (5YR-2005), Contract policy, PensionsPensions

detailsdetails Complaint CERN reply Rejoinder of complainant CERN surrejoinder

available from your delegatesavailable from your delegates


Project approved Project approved – Sept.07– Sept.07

Nursery SchoolNursery School – Canteen – Canteen ProjectProject

Opening of the Opening of the new canteen: new canteen:

beginning Oct.08

Ajouter photo Ajouter photo batimentbatiment

September 2007 Staff meeting40

General info General info –– Nursery School CanteenNursery School Canteen

60 places60 places New building: New building: 150 m150 m2 2 in Nursery Schoolin Nursery School Supervision: Supervision: 5 assistants5 assistants CERN subsidy/ 6 years: CERN subsidy/ 6 years: 50 50 kCHFkCHF/ year/ year Cost for parents : Cost for parents : 12 CHF/12 CHF/ meal+servicemeal+service

SA ProjectSA Project

Contact:Contact:Joel Joel LahayeLahaye–– Head of projectHead of project

opening in Sept. 2008opening in Sept. 2008

Photos – 22 sep. 2008


Health Insurance Health Insurance - CHIS -- CHIS - Towards a financial imbalanceTowards a financial imbalance



Results of last exerciseResults of last exercise And tomorrow, which advancement budget?And tomorrow, which advancement budget?

General information General information 5YR 2005/06: working time, administrative circulaires, long-term 5YR 2005/06: working time, administrative circulaires, long-term

SLS, salary indexationSLS, salary indexation Recours : salaires, pensions, contratsRecours : salaires, pensions, contrats


SummarySummary


Departmental meetings Departmental meetings – ACT II– ACT II

TimetableTimetableDateDate TimeTime PlacePlace

Monday 29 Sep. 10h00 IT auditorium/bldg.

31Monday 29

Sep. 15h00AT

auditorium/bldg. 30Tuesday 30

Sep. 09h00AB

auditorium/bldg. 864Thursday 02

Oct. 09h00 Council chamber/bldg. 503

Friday 03 Oct. 09h00

TH auditorium/bldg.

4


Departmental meetingsDepartmental meetings – have your say– have your say

First part (15 mins)First part (15 mins) 5YR - 20105YR - 2010

importance of a 5YR (examples 1995, 2000, 2005)importance of a 5YR (examples 1995, 2000, 2005) subjects to deal withsubjects to deal with timetabletimetable

Prepare the transition with the next DGPrepare the transition with the next DG your opinion and priorities your opinion and priorities present the Staff Association survey - Oct. 08present the Staff Association survey - Oct. 08

General information General information contract policy contract policy administrative circularsadministrative circulars latest newslatest news

Second part (45 mins)Second part (45 mins) Discussion (including follow-up of general Discussion (including follow-up of general

meeting)meeting)


In short In short – make a successful – make a successful

transition…transition… Social securitySocial security Health insurance: Health insurance: towards a financial imbalancetowards a financial imbalance Pension Fund:Pension Fund: funding ratio objective of 125% in 20 funding ratio objective of 125% in 20

yearsyearsscenario “internal taxation of pensions”?scenario “internal taxation of pensions”?

IPSAS: IPSAS: currently shows the long-term commitments of currently shows the long-term commitments of the Member States to the staffthe Member States to the staff

Merit appraisal and recognitionMerit appraisal and recognition2007 and 2008 have shown that the MARS budget must 2007 and 2008 have shown that the MARS budget must be increasedbe increased

General information General information Working time: Working time: administrative circularsadministrative circulars Flexi-time: Flexi-time: long-term SLSlong-term SLS Salaries: Salaries: 2009 indexation2009 indexation Appeals: Appeals: salaries, pensions, contractssalaries, pensions, contracts Nursery school: Nursery school: opening of a Canteenopening of a Canteen

Act 2Act 2: Departmental meetings: Departmental meetingsYour opinion, your priorities: Your opinion, your priorities: prepare together the prepare together the

transitiontransition


Early departure Early departure - - Congratulations !Congratulations !

september 2008 staff meeting 1 act 1: public meeting making a successful transition! making a...

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