Documents considered by the Committee on 26 March 2014 - European Scrutiny Committee Contents


18 Remuneration and pension adjustments for EU staff in 2013

(a)

(35500)

15820/13

+ ADD 1

COM(13) 770

(b)

(35508)

15885/13

+ ADD 1

COM(13) 771

(c)

(35509)

15890/13

COM(13) 772


Draft Council Regulation adjusting, from 1 July 2013 the rate of contribution to the pension scheme of officials and other servants of the European Union


Draft Council Regulation adjusting with effect from 1 July 2013 the correction coefficients applied to the remuneration and pensions of officials and other servants of the European Union


Draft Council Regulation laying down the weightings applicable from 1 July 2013 to the remuneration of officials, temporary staff and contract staff of the European Union serving in third countries

Legal base(a) Article 83a of the Staff Regulations and Annex XII thereto

(b) Articles 63 and 64 of the Staff Regulations and Annex XIII thereto, and Articles 20 (first paragraph), 64, 92 and 132 of the Conditions of Employment of Other Servants

(c) Article 13(1) of Annex X to the Staff Regulations

DepartmentHM Treasury
Basis of considerationMinister's letter of 8 January
Previous Committee ReportHC 83-xxiii (2013-14), chapter 22 (4 December 2013)
Discussion in CouncilDecember 2013
Committee's assessmentPolitically important
Committee's decisionCleared (decision reported 4 December 2013)

Previous scrutiny

18.1 This Report covers three proposals relating to EU staff pay and pensions. The details of the document are set out in our previous Report.[76] In the conclusion to that Report we said as follows:

    "We take note of the Government's intended approach to voting on these three proposals in the Council, which we strongly support. Despite the speed with which the Commission seeks to have them adopted, which we regret, we see no reason to retain them under scrutiny in the light of the Government's approach. In so doing, we are aware that there is unlikely to be a blocking minority to prevent the first two proposals from being adopted.

    "We note, however, that in relation to document (b) the Minister says that, due to the suspension of the application of certain provisions in Article 65 of the Staff Regulations in 2013 and 2014, this proposal does not include the annual adjustment to remuneration and pensions, but is limited to the adjustment of the correction coefficients and updating the reference date for the exchange rates. We ask the Minister to explain this further. In so doing, we ask him for his assessment of the impact of the Court of Justice's judgment on 19 November on the 2011 annual adjustment for remuneration and pensions,[77] which found in favour of the Council, whom the UK and several other Member States supported. We will be interested to know what impact he estimates the judgment will have on the EU Budget."

The Minister's letter of 8 January

18.2 The Economic Secretary to the Treasury (Nicky Morgan) writes in response to our Report. She says:

    "You asked for further clarification on what was meant by the 'suspension of the application of certain provisions in Article 65 of the Staff Regulations in 2013 and 2014' for proposal 15885/13. This resulted from the new EU Staff Regulations, adopted at Council on 10 October 2013, which implemented a suspension of the adjustment of salaries, allowances and pensions of EU officials in 2013 and 2014. While the salaries and pensions were frozen, the correction coefficients and weightings to adjust for the different cost of living outside Belgium and Luxembourg were not. As such, the proposal in question only updates the exchange rate reference date and makes adjustments to account for the different cost of living for EU officials outside of Belgium and Luxembourg.

    "With respect to the Court of Justice's 19 November judgment on the remuneration and pension adjustments for EU staff in 2011, the Government welcomes this decision. Following the judgement, the Commission has submitted a revised proposal for remuneration and pension adjustments for EU staff in 2011. Further, the Commission has also submitted a revised proposal for remuneration and pension adjustments for EU staff in 2012. An Explanatory Memorandum on the revised proposals will be provided, which will include their financial implications."

Conclusion

18.3 We thank the Minister for clarifying the outstanding concerns we had.


76   See headnote. Back

77   C63/12, C-66/12, and C-196/12. Back


 
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