1. Agenda No.10.2 Updated Extra-EU methodology Manual
Doc.A6465/14/60rev2
Agenda No Updated Extra-EU methodology Manual
Working Group on Articles A64 and A65 of the Staff Regulations
Meeting in Luxembourg March 2017

2. Content of this presentation
1-Introduction
2-Modifications agreed and introduced
Page 17, point 2.3, formulas
Page 37, point 10.6, smoothing impact paragraph
Page 75 & 76, Annex 11
3-Further improvements now proposed
4-Conclusion

3. 1-Introduction:
As agreed, following WG art 64 / 65 hold in March 2016 a new updated Extra-EU Methodology was circulated.
Shortly afterwards, comments were received to correct minor typing mistakes.
The methodology was corrected and final text was published in July 2016.
Doc.A6465/14/60 rev2
For information, the changes are shown here.

4. Modification: Page 17, point 2.3, formulas
Previous version
New version
Correction on the Laspeyres-type index formula.

5. Modification: Page 17, point 2.3, formulas
Previous version
New version
Correction of the Paasche-type index formula

6. Modification: Page 37, point 10
Modification: Page 37, point 10.6 ,smoothing impact of a new survey results:
Previous version :
The 2009 meeting of the Article 64 Working Group approved the principle of smoothing PPPs. The following rule is now applied in producing the results package: if the global PPP from a new place to-place survey is different from the global PPP of the old survey updated to the same date, then the impact is smoothed (ie. delayed); the balance is spread over the available period (eg. between 1 to 2% per month). The normal available period is adjusted as followed:
-If the difference between the PPPs is < or = to 5%, the new PPP take effect immediately,
-If the difference is > to 5% but < or = to 12%, the impact is smoothed over 6 months
-If the difference is > to 12% but < or = to 24%, the impact is smoothed over 12 months,
-If the difference is > to 24% but < or + to 36% the impact is smoothed over 18 months,
-In the case the difference is higher than 36%, which should hardly ever happen, the impact won’t be smoothed for a period greater than 18 months.

7. New, clarified presentation :

8. Modification: Page 75 & 76, Annex 11
Calculation steps establishing a correction coefficient for a duty station

9. Modification: Page 75 & 76, Annex 11
Calculation steps for updating a correction coefficient for a duty station.

10. Thank you for your attention!