1. WG on Article 83 of the SR. Doc. 20140627 Art83_05
Liability of the PSEO at
Item 5 of the agenda
WG on Article 83 of the SR. Doc Art83_05

2. PSEO DBO at 31.12.2013, by population type
Population €
LRA
Active staff
25,014,704,870.89
LRD
Deferred pensions
141,049,046.27
LRR
Retired non contributing members
14,548,197,480.64
LRB
Retired contribuiting members
22,923,585.03
LII
Invalids
2,485,920,546.68
LSD
Survivors
1,631,913,548.09
Total DBO of Pensions
DBO of Family allowances
Total DBO
Correction coefficients effect (CC)
Total DBO, CC included
WG on Article 83 of the SR. Doc Art83_05

3. WG on Article 83 of the SR. Doc. 20140627 Art83_05
Changes in inputs and DBO valuation
Item
Change
Main variables:
Total PSEO member population
76 543
79 030
2 487
Real Discount Rate (RDR)
1.6%
1.8%
0.2%
General Salary Growth (GSG)
0.0%
-0.2%
Life table
ICSLT 2008
ICSLT 2013
2.7%
Gross DBO (million €) :
DBO of pensions
40 241
43 845
3 604
DBO of Family allowances
1 720
2 103
383
Correction coefficients effect (CC)
1 175
1 103
- 72
Total DBO, CC included
43 136
47 050
3 914
WG on Article 83 of the SR. Doc Art83_05

4. Assumptions used for the DBO calculation
Actuarial assumption
Value
Average age difference between married men and women
2 years
Probability of being married for men
81%
Probability of being married for women
49%
Marital status
status at evaluation date
Coefficient for orphan's and divorced spouse's pension
13%
Annex VIII coefficient (correction coefficient)
2.4%
Assumed retirement age
63 (officials in service before ), 64 (officials in service from ) or 65 (officials in service from )
Expected inflation rate over the duration of the scheme
1.9%
Nominal Discount rate (NDR)
3.7%
Real Discount rate (RDR)
1.8%
General salary growth (GSG)
-0.2%
General pension revaluation (GPR)
-0.2% (equal to the GSG)
Individual salary progression (ISP)
2014 ISP Table
Mortality table
ICSLT2013
WG on Article 83 of the SR. Doc Art83_05

5. WG on Article 83 of the SR. Doc. 20140627 Art83_05
Population included in the liability at
The DBO has been based on a population of 79 030 individuals, consisting of:
58 725 contributing members
19 850 beneficiaries of a retirement, invalidity or survivor's pension
455 deferring the benefit of the pension to the normal retirement age
WG on Article 83 of the SR. Doc Art83_05

6. WG on Article 83 of the SR. Doc. 20140627 Art83_04
Contributing members at , by age and sex
WG on Article 83 of the SR. Doc Art83_04

7. WG on Article 83 of the SR. Doc. 20140627 Art83_05
Non-contributing members at , by age and sex
WG on Article 83 of the SR. Doc Art83_05

8. DBO yearly change (CC excluded)
Total DBO change
Item
Amounts in million € %
DBO at (T-1)
41,960.8
DBO at (T0)
45,947.2
Net change (ΔL)
3,986.4
9.5%
Breakdown of the DBO change
% (1)
1. Change due to newcomers
244.4
0.6%
2. DBO Change linked to the characteristics of the constant population
2,766.2
6.6%
2.1 Service cost
1,927.7
4.6%
2.2 Interest cost
1,603.7
3.8%
2.3 Benefits paid
-1,287.5
-3.1%
2.4 Actuarial gains and losses from experience (balance)
522.3
1.2%
3. Actuarial gains and losses from changes in assumptions
-327.3
-0.8%
3.1 Interest rate (RDR)
-1,732.1
-4.1%
3.2 Life table
1,666.6
4.0%
3.3 General Salary Growth (GSG)
-1,680.9
-4.0%
3.4 Other changes in actuarial assumptions
1,419.1
3.4%
4. Actuarial gains and losses from changes in methodology and other changes
1,303.2
3.1%
(1) % with respect to pension liability at T-1
WG on Article 83 of the SR. Doc Art83_05

9. Any question on this document?
Thank you for your attention
WG on Article 83 of the SR. Doc Art83_05