1. 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

2. 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

3. 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 EN
Autumn 2012
Updated ECP manual
KS-RA EN
July 2013
Updated HICP compendium
KS-RA 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

4. 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

5. 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

6. 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

7. 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)

8. 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 for an assessment of the different approaches to calculate the Joint Index (Doc.A6465/14/12)

9. Conclusion
Delegates are invited to endorse the new method manual for monitoring inflation in headquarters duty stations

10. 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