September 2008 Staff meeting 1 Act 1: Public meeting Making a successful transition! Making a successful transition! 23 September 2008

September 2008 Staff meeting 2 LHC - First congratulations !

September 2008 Staff meeting 3 Health insurance - CHIS - Health insurance - CHIS - Towards a financial imbalance Towards a financial imbalance 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 progress Technical studies in progress Transition to IPSAS accounting standards Transition to IPSAS accounting standards Merit appraisal and recognition - MARS & LHC - Merit appraisal and recognition - MARS & LHC - Results of the last exercise Results 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 : working time, administrative circulars, long-term SLS, indexation of salaries 5YR-2005/06 : working time, administrative circulars, long-term SLS, indexation of salaries Appeals: salaries, pensions, contracts Appeals: salaries, pensions, contracts Departmental meetings Departmental meetings Summary

September 2008 Staff meeting 4 Long-Term Care – Sept. 07 Long-Term Care – Sept. 07 CHIS - Reminder daily allowance: increased (85 → 100 CHF) adjusted by DG (= 50% of the costs in a Swiss EMS) decision COUNCIL DEC.07

September 2008 Staff meeting 5 « We’ve f(o)und our money! » – Echo 17 Dec. 07 Creation of a fund of 93 MCHF composed of Creation of a fund of 93 MCHF composed of Reserve for the long-term care scheme Reserve 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 6 MCHF (≈ 10% of annual expenditure)  Catastrophic risk 20 MCHF (≈ 33% of annual expenditure)  Expenditure committed, but not yet reimbursed 12 MCHF (≈ 20% of annual expenditure) Invested in two investment funds (20% equities, 80% bonds) Invested in two investment funds (20% equities, 80% bonds) CHIS accounts separated from those of the Organization CHIS accounts separated from those of the Organization CHIS - Reminder

September 2008 Staff meeting 6 Actuarial review 2007: financial imbalance from 2010 Actuarial review 2007: financial imbalance from 2010 Latest news Latest news 1 st semester 2008 negative balance (expenditure: + 10%) negative balance (expenditure: + 10%) imbalance foreseen from 2008 imbalance foreseen from 2008 CHIS – Financial situation 2010

September 2008 Staff meeting 7 CHIS – Financial situation Imbalance : what to do for the time being? Imbalance : what to do for the time being? Strong annual fluctuations are nothing new Strong annual fluctuations are nothing new Reserve funds are foreseen to deal with the situation (+10% ≈ 6 MCHF) Reserve funds are foreseen to deal with the situation (+10% ≈ 6 MCHF) CHIS will be a topic of the next 5YR CHIS will be a topic of the next 5YR

September 2008 Staff meeting 8 CHIS – Ensure the future of our scheme 1st step achieved : creation of a capitalized fund – 93 MCHF 1st step achieved : creation of a capitalized fund – 93 MCHF 5YR–2010 5YR–2010 Obtain the implementation of two recommendations by the actuary  Smooth the increase in costs due to ageing by an annual increase of 1% of the contribution rate (Organization + contributing members): 10%  10,1%  10,2% …  If medical inflation increases more rapidly than salaries and pensions, the differential should be added to the increase in contribution rate CHIS Board : subgroup “Future of the Scheme” CHIS Board : subgroup “Future of the Scheme” Your opinion interests us : SA survey - Oct. 08 Reminder : CHIS = Mutual benefit and support scheme Reminder : CHIS = Mutual benefit and support scheme For each franc spent, half is paid by the contributing member Making savings for the scheme means making savings for ourselves !

September 2008 Staff meeting 9 Health insurance - CHIS - Health insurance - CHIS - Towards a financial imbalance Towards a financial imbalance 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 progress Technical studies in progress Transistion to IPSAS accoutning standards Transistion to IPSAS accoutning standards Merit appraisal and recognition - MARS & LHC - Merit appraisal and recognition - MARS & LHC - Results of the last exercise Results 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, indexation of salaries 5YR 2005/06: working time, administrative circulars, long-term SLS, indexation of salaries Appeals: salaries, pensions, contracts Appeals: salaries, pensions, contracts Departmental meetings Departmental meetings Summary

September 2008 Staff meeting 10 Pensions – Balance of our Fund

September 2008 Staff meeting 1 decision COUNCIL 2002 pensioners CERN Pensioners + STAFF ECHO n°52 Pensions – Balance of our Fund Actuarial review 2007 : which recommendation by the GBPF? Actuarial review 2007 : which recommendation by the GBPF?

September 2008 Staff meeting 12 Pensions – Balance of our Fund

September 2008 Staff meeting 13 Pension Fund Active members CERN Markets Paid pensions Taxation of pensions – current situation TaxBeneficiaries Residence 1FR55% 2CH34% 3DE3% 4UK1.5%

September 2008 Staff meeting 14 Internal Taxation Pension Fund Active members CERN Paid pensions TaxBeneficiaries X Residence 1FR55% 2CH34% 3DE3% 4UK1.5% Markets Taxation of pensions – for tomorrow?

September 2008 Staff meeting 15 Pensions – Technical studies in progress GBPF – WG2 : funding policy and principles GBPF – WG2 : funding policy and principles Objective: 125% in 20 years SA: only realistic scenario = Internal taxation recommandation PFGB MID 09

September 2008 Staff meeting 16 Health insurance - CHIS - Health insurance - CHIS - Towards a financial imbalance Towards a financial imbalance 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 progress Technical studies in progress Transition to IPSAS accounting standards Transition to IPSAS accounting standards Merit appraisal and recognition - MARS & LHC - Merit appraisal and recognition - MARS & LHC - Results of the last exercise Results 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, indexation of salaries 5YR 2005/06: working time, administrative circulars, long-term SLS, indexation of salaries Appeals: salaries, pensions, contracts Appeals: salaries, pensions, contracts Departmental meetings Departmental meetings Summary

September 2008 Staff meeting 17 IPSAS – new main budget items related to the staff Paid leave Paid leave The accumulated present value to be paid in the future to staff members when they will be absent for annual, saved or compensation leave reasons Post-employment benefits Post-employment benefits Estimated actuarial liability towards employed and retired members of the CERN personnel provision CERN/2787 CERN/2787

September 2008 Staff meeting 18 Health insurance - CHIS - Health insurance - CHIS - Towards a financial imbalance Towards a financial imbalance 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 progress Technical studies in progress Transition to IPSAS accounting standards Transition to IPSAS accounting standards Merit appraisal and recognition - MARS & LHC - Merit appraisal and recognition - MARS & LHC - Results of last exercise Results 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, indexation of salaries 5YR 2005/06: working time, administrative circulars, long-term SLS, indexation of salaries Appeals: salaries, pensions, contracts Appeals: salaries, pensions, contracts Departmental meetings Departmental meetings Summary

September 2008 Staff meeting 19 MARS results / career path

September 2008 Staff meeting 20 MARS 2008 – steps / population guidelines CCP-2008/4 grouping

September 2008 Staff meeting 21 LHC Oct. 08 – results / career path Reminder: exercise without SCC guidelines Reminder: exercise without SCC guidelines

September 2008 Staff meeting & steps / population MARS 08 + LHC Oct. 08 ≈ Exercise 2007

September 2008 Staff meeting 23 MARS 2008 MARS 2008 Global use of Advancement & Financial Awards budgets Global use of Advancement & Financial Awards budgets Use of budgets per career path Use of budgets per career path Percentage of « periodic only » Percentage of « periodic only » LHC Oct. 08 LHC Oct. 08 Global use of Advancement & Financial Awards budgets Global use of Advancement & Financial Awards budgets Use of budgets per career path: bias observed Use of budgets per career path: bias observed : objectives reached with difficulty thanks to additional budget in 2007 (5YR-05) and 2008 (LHC) : objectives reached with difficulty thanks to additional budget in 2007 (5YR-05) and 2008 (LHC) Without additional budget, this shortfall must be managed From 2009 : Additional budget is needed so that the merit of each person can be adequately recognized From 2009 : Additional budget is needed so that the merit of each person can be adequately recognized X Merit recognition – 2 years later…

September 2008 Staff meeting 24 Health insurance - CHIS - Health insurance - CHIS - Towards a financial imbalance Towards a financial imbalance 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 progress Technical studies in progress Transition to IPSAS accounting standards Transition to IPSAS accounting standards Merit appraisal and recognition - MARS & LHC - Merit appraisal and recognition - MARS & LHC - Results of last exercise Results of 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, indexation of salaries 5YR-2005/06 : working time, administrative circulars, long-term SLS, indexation of salaries Appeals : salaries, pensions, contracts Appeals : salaries, pensions, contracts Departmental meetings Departmental meetings Summary

September 2008 Staff meeting 25 Administrative Circulars What progress has been made? What progress has been made? AC 4 : Unemployment insurance AC 4 : Unemployment insurance AC 12A, AC 12B : Education fees AC 12A, AC 12B : Education fees AC 26 : Recognition of merit of Staff members AC 26 : Recognition of merit of Staff members AC 30 : Indemnities and reimbursements on arrival/departure AC 30 : Indemnities and reimbursements on arrival/departure Working time Working time Overtime, stand-by duty, shift work Overtime, stand-by duty, shift work Chap.III : approved by CERN Council in June 2008 Chap.III : approved by CERN Council in June 2008 AC : being drafted AC : being drafted

September 2008 Staff meeting 26 Saved Leave Scheme Short-term Saved Leave: « STSL » in existence since Jan. 08 Short-term Saved Leave: « STSL » in existence since Jan. 08 Ceiling on 30 September Ceiling on 30 September Annual leave: 30 days STSL : 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 : early retirement Long-term SLS : early retirement The DG had promised to study the conditions for this new system before the end of 2007, with implementation in 2008, if an agreement is reached at SCC. The DG had promised to study the conditions for this new system before the end of 2007, with implementation in 2008, if an agreement is reached at SCC. With no agreement reached, discussions will start up again with the next Management. With no agreement reached, discussions will start up again with the next Management. 52 days max. on « annual leave » account

September 2008 Staff meeting 27 Indexation of salaries – Evolution since 2001 RNM > 0 +4,2% RNM < 0 +3,2% RNM = average movements of the real net salaries of civil servants Long-term hypothetical indexation = +2% / yr

September 2008 Staff meeting 28 Indexation des salaires – au 1 er janvier 2009 Calculation method : Calculation method : Approved by Council - 5YR 2000 & 5YR 2005 Approved by Council - 5YR 2000 & 5YR 2005 Clear objective: Clear objective: maintain between two 5YR the existing ratio between the salaries of CERN and our comparators Reminder of difference 5YR 2005 : -20% on average Has always been applied since 2001 Has always been applied since 2001 Year of start-up of LHC : what message does this give to the staff ? Legally : it is a guide Legally : it is a guide Our position : Our position : CERN must remain a centre of excellence ! CERN must remain a centre of excellence ! The method must be applied to avoid a double penalty ! The method must be applied to avoid a double penalty ! If necessary, we will have to go and get our indexation ! decision COUNCIL DEC.08

September 2008 Staff meeting 29 Appeals – on three topics Salaries (5YR-2005), Contract policy, Pensions Salaries (5YR-2005), Contract policy, Pensions judgement ILOAT FEB.09 details details Complaint CERN reply Rejoinder of complainant CERN surrejoinder available from your delegates

September 2008 Staff meeting 30 Project approved – Sept.07 Project approved – Sept.07 Nursery School – Canteen Project Opening of the new canteen: Opening of the new canteen: beginning Oct.08 Ajouter photo batiment Photos – 22 sep. 2008

September 2008 Staff meeting 31 Health Insurance - CHIS - Health Insurance - CHIS - Towards a financial imbalance Towards a financial imbalance 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 progress Technical studies in progress Transition to IPSAS accounting standards Transition to IPSAS accounting standards Merit appraisal and recognition - MARS & LHC - Merit appraisal and recognition - MARS & LHC - Results of last exercise Results 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 SLS, salary indexation 5YR 2005/06: working time, administrative circulaires, long-term SLS, salary indexation Recours : salaires, pensions, contrats Recours : salaires, pensions, contrats Departmental meetings Departmental meetings Summary

September 2008 Staff meeting 32 Departmental meetings – ACT II TimetableDateTimePlace Monday 29 Sep.10h00 IT auditorium/bldg. 31 Monday 29 Sep.15h00 AT auditorium/bldg. 30 Tuesday 30 Sep.09h00 AB auditorium/bldg. 864 Thursday 02 Oct.09h00 Council chamber/bldg. 503 Friday 03 Oct.09h00TH auditorium/bldg. 4

September 2008 Staff meeting 3 Departmental meetings – have your say First part (15 mins) First part (15 mins) 5YR YR importance of a 5YR (examples 1995, 2000, 2005) importance of a 5YR (examples 1995, 2000, 2005) subjects to deal with subjects to deal with timetable timetable Prepare the transition with the next DG Prepare the transition with the next DG your opinion and priorities your opinion and priorities present the Staff Association survey - Oct. 08 present the Staff Association survey - Oct. 08 General information General information contract policy contract policy administrative circulars administrative circulars latest news latest news Second part (45 mins) Second part (45 mins) Discussion (including follow-up of general meeting) Discussion (including follow-up of general meeting)

September 2008 Staff meeting 34 In short – make a successful transition… Social security Social security Health insurance: towards a financial imbalance Health insurance: towards a financial imbalance Pension Fund: funding ratio objective of 125% in 20 years Pension Fund: funding ratio objective of 125% in 20 years scenario “internal taxation of pensions”? IPSAS: currently shows the long-term commitments of the Member States to the staff IPSAS: currently shows the long-term commitments of the Member States to the staff Merit appraisal and recognition Merit appraisal and recognition 2007 and 2008 have shown that the MARS budget must be increased General information General information Working time: administrative circulars Working time: administrative circulars Flexi-time: long-term SLS Flexi-time: long-term SLS Salaries: 2009 indexation Salaries: 2009 indexation Appeals: salaries, pensions, contracts Appeals: salaries, pensions, contracts Nursery school: opening of a Canteen Nursery school: opening of a Canteen Act 2: Departmental meetings Act 2: Departmental meetings Your opinion, your priorities: prepare together the transition

September 2008 Staff meeting 35 Early departure - Congratulations !