September 2007 Staff meeting 1 LES ENJEUX, NOS PROPOSITIONS, VOTRE SOUTIEN THE STAKES, OUR PROPOSALS, YOUR SUPPORT

September 2007 Staff meeting 2 Summary Pension Fund Pension Fund new governance from 1 st October: what are the changes? new governance from 1 st October: what are the changes? Health Insurance Health Insurance Health insurance scheme: are we heading towards an imbalance? Health insurance scheme: are we heading towards an imbalance? Long-Term Care (LTC): update Long-Term Care (LTC): update Merit Appraisal and Recognition Scheme (MARS) Merit Appraisal and Recognition Scheme (MARS) a 1 st report a 1 st report Saved Leave Scheme Saved Leave Scheme Replacement of SLS programme Replacement of SLS programme General information General information Manpower plan, Nursery School canteen, Election of Staff Council Manpower plan, Nursery School canteen, Election of Staff Council

September 2007 Staff meeting 3 Summary Pension Fund Pension Fund new governance from 1 st October: new governance from 1 st October: what are the changes? Presentation by Dorothée Duret Presentation by Dorothée Duret Member of the GBPF* appointed by the Staff Association Member of the GBPF* appointed by the Staff Association *Governing Board of the Pension Fund of CERN

September 2007 Staff meeting 4 Nov. 2006Dec. 2006June 2007 Pension Fund Do you remember?

September 2007 Staff meeting 5 Reaffirmation of the roles of CERN Council Reaffirmation of the roles of CERN Council Regulator Regulator Supreme authority Supreme authority Sponsor Sponsor The Fund remains under the legal framework of the Organization The Fund remains under the legal framework of the Organization CERN Council remains the ultimate authority CERN Council remains the ultimate authority The management of the Fund is delegated to an executive structure, separate from the CERN Management The management of the Fund is delegated to an executive structure, separate from the CERN Management Main decisions – CERN Council / June 2007 Pension Fund - New governance

September 2007 Staff meeting 6 Clarification of roles/responsibilities/line of reporting of each of the organs of the Fund Clarification of roles/responsibilities/line of reporting of each of the organs of the Fund The GBPF reports directly to CERN Council The GBPF reports directly to CERN Council The DG no longer has direct responsibility as far as governance is concerned, but: The DG no longer has direct responsibility as far as governance is concerned, but: -if the proposals may have a direct impact on staff policy, Council shall instruct the DG to elaborate concerted, concrete proposals (SCC, TREF loop …) -if the proposals have an impact on the budget of the Organization, Council shall consult the DG before any decision Pension Fund - New governance Main decisions – CERN Council / June 2007

September 2007 Staff meeting 7 Funding policy Funding policy must be clearly defined and incorporated into the Rules and Regulations of the Fund must be clearly defined and incorporated into the Rules and Regulations of the Fund must define the funding ratio, the Funds objective being to reach and maintain this ratio must define the funding ratio, the Funds objective being to reach and maintain this ratio must define the mechanisms and duration of the recovery period to reach these objectives in the event of underfunding must define the mechanisms and duration of the recovery period to reach these objectives in the event of underfunding must reinforce the guarantees in the event of dissolution of the Organisation or withdrawal of one of the Member States must reinforce the guarantees in the event of dissolution of the Organisation or withdrawal of one of the Member States Pension Fund - New governance Main decisions – CERN Council / June 2007

September 2007 Staff meeting 8 A restricted GBPF A restricted GBPF 10 members instead of members instead of 20 Reinforce the professional character of the organs of the Fund Reinforce the professional character of the organs of the Fund 2 experts in the GBPF (with right to vote) 2 experts in the GBPF (with right to vote) 2 experts in the Investment Committee 2 experts in the Investment Committee A code of conduct for the different representatives in the GBPF A code of conduct for the different representatives in the GBPF Pension Fund - New governance Main decisions – CERN Council / June 2007

September 2007 Staff meeting 9 Employee college Employee college 1 appointed by CERN SA 2 3 appointed by GACE (CERN + ESO pensioners) 4 appointed by ESO SA Employer college Employer college1 appointed by CERN Council 2 3 appointed by CERN DG 4 appointed by Council and/or ESO DG Experts1 appointed by CERN Council on recommendation by GBPF 2 Composition of new GBPF - from 1st Oct Pension Fund - New governance

September 2007 Staff meeting 10 Clarification of roles and responsibilities of different parties (Council, GBPF, DG, …) Clarification of roles and responsibilities of different parties (Council, GBPF, DG, …) Absence of Supervisory Committee (contrary to OECD directive) Absence of Supervisory Committee (contrary to OECD directive) Progress in funding policy Progress in funding policy Foreseeable loss of expertise in GBPF Foreseeable loss of expertise in GBPF through absence of alternates through absence of alternates through total length of mandates limited to 6 years through total length of mandates limited to 6 years SA did not oppose this, but has asked for: SA did not oppose this, but has asked for: an assessment of this new governance within 3 years an assessment of this new governance within 3 years a strengthening of the CERN Unit of the Pension Fund a strengthening of the CERN Unit of the Pension Fund Pension Fund - New governance What we think about these decisions

September 2007 Staff meeting 1 What changes for the SA? Representation of the CERN staff in the GBPF Representation of the CERN staff in the GBPF now ensured only by the 2 members appointed by the SA now ensured only by the 2 members appointed by the SA Pensions Commission (inside SA) Pensions Commission (inside SA) compensate for the foreseeable loss of expertise in GBPF compensate for the foreseeable loss of expertise in GBPF Election of Staff Council delegates Election of Staff Council delegates increase number of voters increase number of voters Pension Fund - New governance

September 2007 Staff meeting 12 Appointment of the 2 SA members to GBPF 2 solutions considered Appointment by Staff Council + an appointed and representative body which defines its policy according to procedures which allow the staff to be informed an appointed and representative body which defines its policy according to procedures which allow the staff to be informed + its representatives are accountable (to the internal Pensions Commission, Executive Committee and Staff Council) its representatives are accountable (to the internal Pensions Commission, Executive Committee and Staff Council) + the staff may approve or disapprove the policy adopted (referendum, general assembly, …) the staff may approve or disapprove the policy adopted (referendum, general assembly, …) - less democratic (second-level election) less democratic (second-level election) Individual election by universal suffrage Individual election by universal suffrage+ most democratic most democratic - the elected member decides alone the policy to adopt without us knowing how it has been determined or approved the elected member decides alone the policy to adopt without us knowing how it has been determined or approved solution retained Pension Fund - New governance

September 2007 Staff meeting 13 Staff Council decision on 21 August 2007 Staff Council decision on 21 August 2007 The Staff Council, on the proposal of the Executive Committee, appoints the two Staff Association representatives in the GBPF. The Executive Committee puts forward its proposal after seeking the opinion of the Pensions Commission of the Staff Council Staff Council decision on 4 September 2007 Staff Council decision on 4 September 2007 Designation of the 2 members of the GBPF appointed by the SA for a mandate beginning 1st October 2007 Dorothée Duret Dorothée Duret Gianni Deroma Gianni Deroma Representation of CERN staff in GBPF Pension Fund - New governance

September 2007 Staff meeting 14 The Pensions Commission (inside SA), currently composed of members of the Staff Council, provides a framework to: The Pensions Commission (inside SA), currently composed of members of the Staff Council, provides a framework to: initiate and elaborate proposals initiate and elaborate proposals guarantee the continuity and follow-up of dossiers guarantee the continuity and follow-up of dossiers provide training (for future candidates) provide training (for future candidates) Staff Council decision on 21 August 2007 Staff Council decision on 21 August 2007 This commission is now open to all members of the SA who are prepared to invest their time in pension issues. Representation of CERN staff in GBPF Pension Fund - New governance

September 2007 Staff meeting 15 To represent the staff in the GBPF, individual election by universal suffrage is thus replaced by an election by Staff Council delegates To represent the staff in the GBPF, individual election by universal suffrage is thus replaced by an election by Staff Council delegates As a result, it is proposed to increase the population who will elect the Staff Council delegates As a result, it is proposed to increase the population who will elect the Staff Council delegates Staff Council decision on 21 August 2007 Staff Council decision on 21 August 2007 A proposal shall be made to the General Assembly in March 2008 to facilitate membership for new staff members by considering staff members on LD contracts (or maximum 4 years) as members of the SA by considering staff members on LD contracts (or maximum 4 years) as members of the SA by offering them free membership during this period by offering them free membership during this period by giving them the possibility, upon written request, to withdraw their membership by giving them the possibility, upon written request, to withdraw their membership Representation of CERN staff in GBPF Pension Fund - New governance

September 2007 Staff meeting 16 Summary Pension Fund Pension Fund new governance from 1 st October: what are the changes? new governance from 1 st October: what are the changes? Health insurance Health insurance Health insurance scheme: are we heading towards an imbalance? Health insurance scheme: are we heading towards an imbalance? Long-Term Care (LTC): update Long-Term Care (LTC): update Merit Appraisal and Recognition Scheme (MARS) Merit Appraisal and Recognition Scheme (MARS) a 1st report a 1st report Saved Leave Scheme Saved Leave Scheme Replacement of SLS programme Replacement of SLS programme General information General information Manpower plan, Nursery School canteen, Election of Staff Council Manpower plan, Nursery School canteen, Election of Staff Council

September 2007 Staff meeting 17 Health Insurance Scheme – financial balance Reminder: remaining element of 5YR

September 2007 Staff meeting 18 Health Insurance Scheme – financial balance Technical study – Vuillemin Group 1st results appeared in: CHISBull July st results appeared in: CHISBull July 2007 TREF presentation – Tripartite Employment Conditions Forum - May 2007 TREF presentation – Tripartite Employment Conditions Forum - May 2007 Medium term: scheme in equilibrium until 2010 Medium term: scheme in equilibrium until 2010 if the additional resources in 2007 are maintained Long term : one predominant factor: Long term : one predominant factor: cost related to ageing of insured population the creation of a capitalized fund is foreseen the creation of a capitalized fund is foreseen

September 2007 Staff meeting 19 Health Insurance Scheme – financial balance Technical study – Vuillemin Group Actuarial review : Cost according to age Actuarial review : Cost according to age

September 2007 Staff meeting 20 Health Insurance Scheme – financial balance Actuarial review: Evolution of insured population Actuarial review: Evolution of insured population Technical study – Vuillemin Group

September 2007 Staff meeting 21 Health Insurance Scheme – financial balance Actuarial review: Evolution of insured population Actuarial review: Evolution of insured population consequence on the average cost per insured member for the scheme consequence on the average cost per insured member for the scheme The actuary suggests the creation of a capitalized fund annual increase of 1% of the contribution rate: 10% 10,1% 10,2% … if medical inflation increases more quickly than salaries and pensions, integrate this differential into the increase in the contribution rate Technical study – Vuillemin Group

September 2007 Staff meeting 2 Health Insurance Scheme – financial balance Latest news from the CHIS Board July 2007: added complication! July 2007: added complication! new HUG prices – Hôpitaux Universitaires de Genève Substantial increase in hospitalization costs for our insured members ( 50%) Substantial increase in hospitalization costs for our insured members ( 50%) Example : birth Example : birth 8000CHF CHF in shared room 8000CHF CHF in shared room Urgent measures to be considered? Urgent measures to be considered? Mobilize Managements of Geneva IO? Mobilize Managements of Geneva IO?

September 2007 Staff meeting 23 Long-Term Care (LTC) – update Technical study – Vuillemin Group Actuarial review: Actuarial review: The actuary considers it possible: to increase accommodation allowance from 85 to 100 CHF from Jan in order to cover 50% of the average real costs in Switzerland to increase accommodation allowance from 85 to 100 CHF from Jan 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 equal to the average increase in salaries and pensions to set an objective for an annual revaluation of the allowance at least equal to the average increase in salaries and pensions Where has the capital gone? Where has the capital gone? Capital accumulated since 2001: 45MCHF Capital accumulated since 2001: 45MCHF net return expected to be 4%, but in reality… net return expected to be 4%, but in reality… currently mixed in with the accounts of the Organization currently mixed in with the accounts of the Organization legal advice sought by SA on the ownership of these funds legal advice sought by SA on the ownership of these funds if necessary, we will have to go and get OUR money! if necessary, we will have to go and get OUR money!

September 2007 Staff meeting 24 Summary Pension Fund Pension Fund new governance on 1 st October: what are the changes? new governance on 1 st October: what are the changes? Health insurance Health insurance Health insurance scheme: are we heading towards an imbalance? Health insurance scheme: are we heading towards an imbalance? Long-Term Care (LTC): update Long-Term Care (LTC): update Merit Appraisal and Recognition Scheme (MARS) Merit Appraisal and Recognition Scheme (MARS) a 1st report a 1st report Saved Leave Scheme Saved Leave Scheme replacement of SLS programme replacement of SLS programme General information General information Manpower plan, Nursery School canteen, Election of Staff Council Manpower plan, Nursery School canteen, Election of Staff Council

September 2007 Staff meeting 25 1st MARS exercise – Quantitative results Advancement distribution - SCC on 26 June 2007

September 2007 Staff meeting 26 1st MARS exercise – Quantitative results Budget plan - SCC on 26 June 2007 Difference 60kCHF/month budget 2008

September 2007 Staff meeting 27 Summary Pension Fund Pension Fund New governance on 1 st October: what are the changes? New governance on 1 st October: what are the changes? Health insurance Health insurance Health Insurance Scheme: are we heading towards an imbalance? Health Insurance Scheme: are we heading towards an imbalance? Long-term Care (LTC): update Long-term Care (LTC): update Merit Appraisal and Recognition Scheme (MARS) Merit Appraisal and Recognition Scheme (MARS) a 1st report a 1st report Saved Leave Scheme Saved Leave Scheme replacement of SLS programme replacement of SLS programme General information General information Manpower plan, Nursery School canteen, Election of Staff Council Manpower plan, Nursery School canteen, Election of Staff Council

September 2007 Staff meeting 28 Saved Leave – Replacement of SLS Current SLS programme DG decision: end of current Saved Leave Scheme (SLS) on 31/12/2007 DG decision: end of current Saved Leave Scheme (SLS) on 31/12/2007 Art. S&R R II 4.29 (10 th edition) : « The Director General may, under conditions laid down by him, grant special saved leave... » Art. S&R R II 4.29 (10 th edition) : « The Director General may, under conditions laid down by him, grant special saved leave... » Terms of expiry of SLS programme Terms of expiry of SLS programme until 31 Dec until 31 Dec no change (possibility to accumulate and transfer days,…) no change (possibility to accumulate and transfer days,…) on 1st Jan on 1st Jan the last bonus (+1day/20days) is paid into saved leave account the last bonus (+1day/20days) is paid into saved leave account then saved leave can no longer be added to then saved leave can no longer be added to the use of saved leave will follow the rules defined in the current implementation procedure the use of saved leave will follow the rules defined in the current implementation procedure

September 2007 Staff meeting 29 Saved Leave – Replacement of SLS New implementation of saved leave 1st programme 1st programme Objective : allow staff members to benefit from flexi-time in the short term slice monthly cost leave 1st1,5% * BS5,5 days/year 2nd2,5% * BS5,5 days/year 3rd2,5% * BS5,5 days/year 4th2,5% * BS5,5 days/year example: 3 slices example: 3 slices cost = 6,5% * BS/month leave = 16,5 days/year Differences with SLS programme - saved leave account may not exceed 22 days on 30 Sept. - no bonus implemented in January 2008 implemented in January 2008 approved SCC SCC

September 2007 Staff meeting 30 Saved Leave – Replacement of SLS 2nd programme 2nd programme Objective : allow staff members to shorten their period of professional activity by planning special end-of-career leave through regular financial contributions DG has undertaken to study possible terms for realizing this programme by the end of the year, for implemetation in 2008, if an agreement is reached by SCC - CCP/ DG has undertaken to study possible terms for realizing this programme by the end of the year, for implemetation in 2008, if an agreement is reached by SCC - CCP/ New implementation of saved leave

September 2007 Staff meeting 31 to pay a replacement Saved Leave – Replacement of SLS 2nd programme SA proposal 2nd programme SA proposal retirement Staffmember savings % salary special leave leave activity Fund CERN manages and pays interest on savings pays the staff member of savings monthly transfer is transfered capital accumulated length of special leave inversely proportional to the salary of replacement: beginner : entry step (a0) in the same career path beginner : entry step (a0) in the same career path New implementation of saved leave

September 2007 Staff meeting 32 Saved Leave – Replacement of SLS 2nd programme SA proposal 2nd programme SA proposalsimulations Hypotheses : Hypotheses : savings = 2,5% * basic salary savings = 2,5% * basic salary interest paid on savings: 2,5% net per year interest paid on savings: 2,5% net per year 35 years of career and savings 35 years of career and savings average advancement average advancement Result: leave 280 days SLS with bonus of 2.5% would give 302 days SLS with bonus of 2.5% would give 302 days SLS with current bonus (1 day/20 days) would give 480 days SLS with current bonus (1 day/20 days) would give 480 days New implementation of saved leave

September 2007 Staff meeting 3 to pay a replacement Saved Leave – Replacement of SLS 2nd programme SA proposal 2nd programme SA proposal retirement Staffmember savings % salary specialleave activity Fund CERN manages and pays interest on savings pays the staff member of savings Monthly transfer is transfered the accumulated capital DG: ok except mixes 2 concepts mixes 2 concepts CERN bonus at end of activity only CERN bonus at end of activity only New implementation of saved leave

September 2007 Staff meeting 34 to pay the staff member to pay a replacement pays the staff member Saved Leave – Replacement of SLS 2nd programme alternative 2nd programme alternative retirement Staffmember savings % salary specialleave activity Fund CERN manages and pays interest on savings pays the staff member of savings monthly transfer the accumulated capital is transferred complement transferred complement transferredmonthly makes up the savings of staff member New implementation of saved leave

September 2007 Staff meeting 35 Summary Pension Fund Pension Fund new governance on 1 st October: what are the changes? new governance on 1 st October: what are the changes? Health Insurance Health Insurance Health insurance scheme: are we heading towards an imbalance? Health insurance scheme: are we heading towards an imbalance? Long-term Care (LTC): update Long-term Care (LTC): update Merit Appraisal and Recognition Scheme (MARS) Merit Appraisal and Recognition Scheme (MARS) a 1st report a 1st report Saved Leave Scheme Saved Leave Scheme Replacement of SLS programme Replacement of SLS programme General information General information Manpower plan, Nursery School canteen, Election of Staff Council Manpower plan, Nursery School canteen, Election of Staff Council

September 2007 Staff meeting 36 General info – Manpower plan Reminder - MARCH 2007

September 2007 Staff meeting 37 General info – Manpower plan Reminder - MARCH 2007 a petition with 1742 signatures supporting the resolution is handed over to - Council President - Finance Committee Chairman

September 2007 Staff meeting 38 General info – Manpower plan Medium-Term Plan - CERN/FC JUNE FTE in FTE in 2012

September 2007 Staff meeting FTE -100 FTE Our graphic analysis of the current LD population General info – Manpower plan DG meeting - Staff - 27 JUNE 2007

September 2007 Staff meeting 40 General info – Nursery School Canteen 60 places 60 places New building: 150 m 2 in Nursery School New building: 150 m 2 in Nursery School Supervision: 5 assistants Supervision: 5 assistants CERN subsidy/6 years: 50 kCHF/year CERN subsidy/6 years: 50 kCHF/year Cost for parents : 12 CHF/ meal+service Cost for parents : 12 CHF/ meal+service SA Project Contact: Joel Lahaye – Head of project approved SCC SCC opening in Sept. 2008

September 2007 Staff meeting 41 General info – Staff Council Elections Electoral college Department Career path total no. posts elected Nov to be filled Nov AB/AT E G 918 2AB/AT AA D DG/DSU/FI/HR/SC E G 514 4DG/DSU/FI/HR/SC AA D 725 5IT/PH E G IT/PH AA D 880 7TS E G 321 8TS AA D 954 Total Delegates: % 79% 71% 80%

September 2007 Staff meeting 42 To sum up Pension Fund Pension Fund new governance on 1st Oct. 2007: to be assessed within 3 years new governance on 1st Oct. 2007: to be assessed within 3 years Governing Board of the Pension Fund Governing Board of the Pension Fund 2 members representing CERN staff appointed by SA 2 members representing CERN staff appointed by SA designated by Staff Council : D. Duret et G. Deroma Total length of mandates limited to 6 years Total length of mandates limited to 6 years lets prepare tomorrows replacements today! join us at the pensions commission (inside SA) join us at the pensions commission (inside SA) representation in Staff Council with an increased number of voters representation in Staff Council with an increased number of voters by facilitating membership of new staff on LD contracts Health Insurance Scheme (CHIS) Health Insurance Scheme (CHIS) Health Insurance Scheme (HIS): are we heading towards an imbalance? Health Insurance Scheme (HIS): are we heading towards an imbalance? Long-Term Care (LTC) Long-Term Care (LTC) improving the accommodation allowance improving the accommodation allowance reserves in the CERN accounts reserves in the CERN accounts if necessary, we will go and get our money!

September 2007 Staff meeting 43 To sum up Merit Appraisal and Recognition Scheme (MARS) Merit Appraisal and Recognition Scheme (MARS) 2007: quantitative results « particularly meritorious » 2007: quantitative results « particularly meritorious » balance of 2007 advancement budget to be carried forward to 2008 exercise balance of 2007 advancement budget to be carried forward to 2008 exercise Saved Leave Scheme Saved Leave Scheme end of current Saved Leave Scheme (SLS) end of current Saved Leave Scheme (SLS) replaced by 2 new flexi-time programmes replaced by 2 new flexi-time programmes programme for « short-term use »: already approved programme for « short-term use »: already approved programme for « early retirement »: under discussion programme for « early retirement »: under discussion General info General info manpower plan: 2008, bleak year! manpower plan: 2008, bleak year! opening of Nursery School canteen: 60 places for Sept opening of Nursery School canteen: 60 places for Sept election of Staff Council: stand as a candidate! election of Staff Council: stand as a candidate!