Doc.A6465/14/11 Doc.A6465/14/58 & ./59 & ./60 Ag12 A64 Method Manuals Working Group on Article 64 and Article 65 of the Staff Regulations Meeting in Luxembourg 24th & 25th March 2014
Current manuals adopted March 2011 Evolution of consumer prices in headquarters : doc.A64/11/27 (chapters 1-2) Intra-EU correction coefficients : doc.A64/11/27 (chapters 3-10) Extra-EU correction coefficients : doc.A64/11/28
Why update in 2014? Some reasons… Event Reference Sept. 2011 WG methodology discussion (summary of simulations) A65/11-B/03 Sept.2011 European Statistics Code of Practice KS-32-11-995-EN Autumn 2012 Updated ECP manual KS-RA-12-023-EN July 2013 Updated HICP compendium KS-RA-13-017-EN Oct. 2013 Amendment to Staff Regulations reg.1023/2013 Sept. 2013 Lessons from 2012 A64 exercise A64/13/04…/12 and A64/13/19…/24 Spring 2014 Trilateral discussion UN.ICSC/CO.ISRP - Mar. 2014 Lessons from 2013 A64 exercise A64/14/09 and A64/14/10
What are the main changes? Inflation measurement in headquarters Now a separate manual Entirely new text. Reflects new approach 1023/2013 Numeric example still to be inserted Linkage tables to LU CPI and BE HICP to be inserted Intra-EU CC Update appendix examples. Reflect ECP changes Extra-EU CC Simplify (remove reference to previous approaches) Update text to reflect 1023/2013 and UN.MoU
Detailed presentation of manuals Manual for Inflation monitoring General legal framework (common aspects for Intra-EU and Extra-EU CC) Specific changes for Intra-EU CC manual Specific changes for Extra-EU CC manual
Inflation monitoring – Joint Index Joint index: measures inflation in BRU and LUX BE: HICP LU: CPI (local index) Weights: staff distribution (roughly 80:20) Two incarnations: Detailed aggregation on 80 BH with expatriate consumption patterns Overall calculation just by staff distribution
Joint Index – Detailed aggregation Map BE HICP and LU CPI onto 80 basic headings 2 x 80 BHs Combine the 2 x 80 BHs, weighted by staff distribution 1 x 80 BHs Weight the 80 BHs by consumption pattern of expatriates in Brussels (SHE 2009, update 2014) overall index Used for correction coefficients (defines 'CC=100' in Brussels)
Joint Index – Overall calculation 'All-items' values of BE HICP and LU CPI Combine the 2 values, weighted by staff distribution Used for remuneration (defines inflation in Brussels for salaries) See Ag. 13.1 for an assessment of the different approaches to calculate the Joint Index (Doc.A6465/14/12)
Conclusion Delegates are invited to endorse the new method manual for monitoring inflation in headquarters duty stations
Detailed presentation of manuals Manual for Inflation monitoring General legal framework (common aspects for Intra-EU and Extra-EU CC) Specific changes for Intra-EU CC manual Specific changes for Extra-EU CC manual