september 2008 staff meeting 1 act 1: public meeting making a successful transition! making a...
TRANSCRIPT
September 2008 Staff meeting 1
Act 1Act 1: : Public meetingPublic meeting
Making a successful Making a successful transition!transition!
23 September 200823 September 2008
September 2008 Staff meeting 2
LHC LHC - First - First congratulations !congratulations !
September 2008 Staff meeting 3
Health insurance Health insurance - CHIS -- CHIS - Towards a financial imbalanceTowards a financial imbalance
Pension Fund Pension Fund - PF -- PF - Decision - June 08: Decision - June 08: is CERN Council assuming its is CERN Council assuming its
responsibilities?responsibilities? Technical studies in progressTechnical studies in progress
Transition to IPSAS accounting standardsTransition to IPSAS accounting standards Merit appraisal and recognition Merit appraisal and recognition - MARS & LHC -- MARS & LHC -
Results of the last exerciseResults 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 : 5YR-2005/06 : working time, administrative circulars , long-working time, administrative circulars , long-
term SLS, indexation term SLS, indexation of salariesof salaries Appeals: Appeals: salaries, pensions, contractssalaries, pensions, contracts
Departmental meetings Departmental meetings
SummarySummary
September 2008 Staff meeting 4
September 2007 Staff meeting23
Long-Term Care (LTC) – update
Technical study – Vuillemin Group
Actuarial review:The actuary considers it possible:
to increase accommodation allowance from 85 to 100 CHF from Jan. 2008 in order to cover 50% of the average real costs in Switzerland
to set an objective for an annual revaluation of the allowance at least equalto the average increase in salaries and pensions
Where has the capital gone? Capital accumulated since 2001: ≈ 45MCHF
net return expected to be 4%, but in reality… currently mixed in with the accounts of the Organization→ legal advice sought by SA on the ownership of these funds→ if necessary, we will have to go and get OURmoney!
Long-Term Care Long-Term Care – Sept. 07– Sept. 07
CHISCHIS - Reminder - Reminder
daily allowance: daily allowance: • increased
(85 → 100 CHF)• adjusted by DG
(= 50% of the costs in a Swiss EMS)
September 2008 Staff meeting 5
« « We’ve f(o)und our money! » We’ve f(o)und our money! » – Echo 17 – Echo 17 Dec. 07Dec. 07
Creation of a fund of 93 MCHF composed ofCreation of a fund of 93 MCHF composed of Reserve for the long-term care schemeReserve 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 Variations from year to year 6 MCHF 6 MCHF (≈ 10% of annual expenditure)(≈ 10% of annual expenditure)
Catastrophic risk Catastrophic risk 20 MCHF 20 MCHF (≈ 33% of annual expenditure)(≈ 33% of annual expenditure)
Expenditure committed, but not yet reimbursedExpenditure committed, but not yet reimbursed12 MCHF 12 MCHF (≈ 20% of annual expenditure)(≈ 20% of annual expenditure)
Invested in two investment funds Invested in two investment funds (20% equities, 80% (20% equities, 80% bonds)bonds)
CHIS accounts separated from those of the CHIS accounts separated from those of the OrganizationOrganization
CHISCHIS - Reminder - Reminder
September 2008 Staff meeting 6
Actuarial review 2007: financial Actuarial review 2007: financial imbalance from 2010imbalance from 2010
Latest newsLatest news
11stst semester 2008 semester 2008 negative balance negative balance
(expenditure: (expenditure: ++10%)10%) imbalance imbalance
foreseen from foreseen from 2008 2008
CHISCHIS – Financial – Financial situationsituation
20102010
September 2008 Staff meeting 7
CHISCHIS – Financial – Financial situationsituation Imbalance : what to do for the time being?Imbalance : what to do for the time being?
Strong annual fluctuations are nothing newStrong annual fluctuations are nothing new
-6
-4
-2
0
2
4
6
8
10
12
1996 1998 2000 2002 2004 2006 2008
evo
luti
on
[%
] fr
om
o
ne
ye
ar
to t
he
ne
xt
Years
Evolution of average cost
ageing
medical inflation
total
Reserve funds are foreseen to deal with the situation Reserve funds are foreseen to deal with the situation (+10% ≈ 6 MCHF)(+10% ≈ 6 MCHF)
CHIS will be a topic of the next 5YR - 2010CHIS will be a topic of the next 5YR - 2010
September 2008 Staff meeting 8
CHISCHIS – Ensure the future of – Ensure the future of our schemeour scheme 1st step achieved : 1st step achieved : creation of a capitalized fund creation of a capitalized fund
– 93 MCHF– 93 MCHF 5YR–20105YR–2010
Obtain the implementation of two Obtain the implementation of two recommendations by the actuaryrecommendations by the actuary
Smooth the increase in costs due to ageing by an Smooth the increase in costs due to ageing by an annual increase of 1% of the contribution rate annual increase of 1% of the contribution rate (Organization + contributing members):(Organization + contributing members):10% 10% 10,1% 10,1% 10,2% … 10,2% …
If medical inflation increases more rapidly than If medical inflation increases more rapidly than salaries and pensions, the differential should be added salaries and pensions, the differential should be added to the increase in contribution rateto the increase in contribution rate
CHIS Board : CHIS Board : subgroup “Future of the Scheme”subgroup “Future of the Scheme”Your opinion interests us : SA survey Your opinion interests us : SA survey - Oct. 08- Oct. 08
Reminder : Reminder : CHIS = Mutual benefit and support CHIS = Mutual benefit and support schemescheme
For each franc spent, half is paid by the For each franc spent, half is paid by the contributing member contributing member
Making savings for the scheme means making savings for ourselves !
September 2008 Staff meeting 9
Health insurance Health insurance - CHIS -- CHIS - Towards a financial imbalanceTowards a financial imbalance
Pension Fund Pension Fund - PF -- PF - Decision - June 08: Decision - June 08: is CERN Council assuming its is CERN Council assuming its
responsibilities?responsibilities? Technical studies in progressTechnical studies in progress
Transistion to IPSAS accoutning standardsTransistion to IPSAS accoutning standards Merit appraisal and recognition Merit appraisal and recognition - MARS & LHC -- MARS & LHC -
Results of the last exerciseResults 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-5YR 2005/06: working time, administrative circulars, long-
term SLS, indexation of salariesterm SLS, indexation of salaries Appeals: salaries, pensions, contractsAppeals: salaries, pensions, contracts
Departmental meetings Departmental meetings
SummarySummary
September 2008 Staff meeting 10
PensionsPensions – Balance of our – Balance of our FundFund
September 2008 Staff meeting 11
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
110.0%
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Year
Funding ratio - projection over the next 30 years
Impact of reduction factor for start > 1.7.87 Impact of under-indexation of pensions Employee share 0.76pp increase of contribution Employer's share 0.76pp increase of contribution
Model from actuarial study 2007
pens
ione
rs
CERN
Pensioners+
STAFF
ECHO n°52
PensionsPensions – Balance of our – Balance of our FundFund Actuarial review 2007 : Actuarial review 2007 : which recommendation which recommendation
by the GBPF?by the GBPF?
September 2008 Staff meeting 12
PensionsPensions – Balance of our – Balance of our FundFund
September 2008 Staff meeting 13
Pension FundPension Fund
Active
membersCERN
Markets
Paid pensionsPaid pensions
Taxation of pensionsTaxation of pensions – current – current situationsituation
TaxBeneficiaries
Residence1 FR 55%2 CH 34%3 DE 3%4 UK 1.5%
September 2008 Staff meeting 14
Internal
TaxationPension FundPension Fund
Active
membersCERN
Paid pensionsPaid pensions
TaxBeneficiaries XResidence
1 FR 55%2 CH 34%3 DE 3%4 UK 1.5%
Markets
Taxation of pensionsTaxation of pensions – for – for tomorrow?tomorrow?
September 2008 Staff meeting 15
PensionsPensions – Technical studies – Technical studies in progressin progress GBPF GBPF – WG2 – WG2 : : funding policy and principlesfunding policy and principles
Objective: 125% in 20 years
SA:only realistic scenario
=Internal taxation
September 2008 Staff meeting 16
Health insurance Health insurance - CHIS -- CHIS - Towards a financial imbalanceTowards 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 progressTechnical studies in progress
Transition to IPSAS accounting standardsTransition to IPSAS accounting standards Merit appraisal and recognition Merit appraisal and recognition - MARS & LHC -- MARS & LHC -
Results of the last exerciseResults 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, 5YR 2005/06: working time, administrative circulars, long-term SLS,
indexation of salariesindexation of salaries Appeals: salaries, pensions, contractsAppeals: salaries, pensions, contracts
Departmental meetings Departmental meetings
SummarySummary
September 2008 Staff meeting 17
IPSAS IPSAS – new main budget items related – new main budget items related to the staffto the staff Paid leavePaid leave
The accumulated present value to be paid in the future to The accumulated present value to be paid in the future to staff members when they will be absent for annual, saved or staff members when they will be absent for annual, saved or compensation leave reasonscompensation leave reasons
Post-employment benefitsPost-employment benefitsEstimatedEstimated actuarial liability towards employed and retired actuarial liability towards employed and retired members of the CERN personnelmembers of the CERN personnel
provisionprovision
CERN/2787CERN/2787
CERN/2787CERN/2787
September 2008 Staff meeting 18
Health insurance Health insurance - CHIS -- CHIS - Towards a financial imbalanceTowards 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 progressTechnical studies in progress
Transition to IPSAS accounting standardsTransition to IPSAS accounting standards Merit appraisal and recognition Merit appraisal and recognition - MARS & LHC -- MARS & LHC -
Results of last exerciseResults 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, 5YR 2005/06: working time, administrative circulars, long-term SLS,
indexation of salariesindexation of salaries Appeals: salaries, pensions, contractsAppeals: salaries, pensions, contracts
Departmental meetingsDepartmental meetings
SummarySummary
September 2008 Staff meeting 19
MARS 2008MARS 2008 - - results / career pathresults / career path
September 2008 Staff meeting 20
MARS 2008MARS 2008 – steps / population– steps / population
guidelinesCCP-2008/4grouping
September 2008 Staff meeting 21
LHC LHC Oct. 08Oct. 08 – results / career path– results / career path Reminder: exercise without SCC guidelinesReminder: exercise without SCC guidelines
September 2008 Staff meeting 22
2007 & 2008 2007 & 2008 - steps / - steps / populationpopulation
MARS 08 + LHC Oct. 08≈
Exercise 2007
September 2008 Staff meeting 23
MARS 2008MARS 2008 Global use of Advancement & Financial Awards budgetsGlobal use of Advancement & Financial Awards budgets Use of budgets per career pathUse of budgets per career path Percentage of « periodic only »Percentage of « periodic only »
LHC Oct. 08LHC Oct. 08 Global use of Advancement & Financial Awards budgetsGlobal use of Advancement & Financial Awards budgets Use of budgets per career path: bias observedUse of budgets per career path: bias observed
2007-2008 : objectives reached with difficulty 2007-2008 : objectives reached with difficulty thanks to additional budget in 2007 (5YR-05) and 2008 thanks to additional budget in 2007 (5YR-05) and 2008 (LHC)(LHC)
Without additional budget, this shortfall must be managedWithout additional budget, this shortfall must be managed From 2009 : Additional budget From 2009 : Additional budget is needed so that the is needed so that the
merit of each person can be adequately recognizedmerit of each person can be adequately recognized
X
Merit recognition Merit recognition – 2 years later…– 2 years later…
September 2008 Staff meeting 24
Health insurance Health insurance - CHIS -- CHIS - Towards a financial imbalanceTowards 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 progressTechnical studies in progress
Transition to IPSAS accounting standardsTransition to IPSAS accounting standards Merit appraisal and recognition Merit appraisal and recognition - MARS & LHC -- MARS & LHC -
Results of last exerciseResults of last exercise And tomorrow, which advancement budget?And tomorrow, which advancement budget?
General information General information 5YR-2005/06 : 5YR-2005/06 : working time, administrative circulars, working time, administrative circulars,
long-term SLS, indexation of salarieslong-term SLS, indexation of salaries Appeals : Appeals : salaries, pensions, contractssalaries, pensions, contracts
Departmental meetings Departmental meetings
SummarySummary
September 2008 Staff meeting 25
Administrative CircularsAdministrative Circulars
What progress has been made?What progress has been made? AC 4 : Unemployment insuranceAC 4 : Unemployment insurance AC 12A, AC 12B : Education feesAC 12A, AC 12B : Education fees AC 26 : Recognition of merit of Staff membersAC 26 : Recognition of merit of Staff members AC 30 : Indemnities and reimbursements on AC 30 : Indemnities and reimbursements on
arrival/departurearrival/departure
Working timeWorking time Overtime, stand-by duty, shift workOvertime, stand-by duty, shift work Chap.III : approved by CERN Council in June Chap.III : approved by CERN Council in June
20082008 AC : being draftedAC : being drafted
September 2008 Staff meeting 26
Saved Leave SchemeSaved Leave Scheme Short-term Saved Leave:Short-term Saved Leave: « STSL » « STSL » in existence since in existence since
Jan. 08Jan. 08 Ceiling on 30 SeptemberCeiling on 30 September
Annual leave: 30 daysSTSL : 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 : Long-term SLS : early retirementearly retirement The DG had promised to study the conditions for this The DG had promised to study the conditions for this
new system before the end of 2007, with new system before the end of 2007, with implementation in 2008, if an agreement is reached at implementation in 2008, if an agreement is reached at SCC.SCC.
With no agreement reached, discussions will start up With no agreement reached, discussions will start up again with the next Management.again with the next Management.
52 days max. on « annual leave » account
September 2008 Staff meeting 27
Indexation of salaries Indexation of salaries – Evolution – Evolution since 2001since 2001
RNM > 0RNM > 0
+4,2%
RNM < 0RNM < 0
+3,2%
RNM = average movements of the real net salaries of civil servantsRNM = average movements of the real net salaries of civil servantsLong-term hypothetical indexation = +2% / yrLong-term hypothetical indexation = +2% / yr
September 2008 Staff meeting 28
Indexation des salaires Indexation des salaires – au 1– au 1erer janvier 2009janvier 2009
September 2008 Staff meeting 29
Appeals Appeals – on three topics– on three topics
Salaries (5YR-2005), Contract policy, Salaries (5YR-2005), Contract policy, PensionsPensions
detailsdetails Complaint CERN reply Rejoinder of complainant CERN surrejoinder
available from your delegatesavailable from your delegates
September 2008 Staff meeting 30
Project approved Project approved – Sept.07– Sept.07
Nursery SchoolNursery School – Canteen – Canteen ProjectProject
Opening of the Opening of the new canteen: new canteen:
beginning Oct.08
Ajouter photo Ajouter photo batimentbatiment
September 2007 Staff meeting40
General info General info –– Nursery School CanteenNursery School Canteen
60 places60 places New building: New building: 150 m150 m2 2 in Nursery Schoolin Nursery School Supervision: Supervision: 5 assistants5 assistants CERN subsidy/ 6 years: CERN subsidy/ 6 years: 50 50 kCHFkCHF/ year/ year Cost for parents : Cost for parents : 12 CHF/12 CHF/ meal+servicemeal+service
SA ProjectSA Project
Contact:Contact:Joel Joel LahayeLahaye–– Head of projectHead of project
opening in Sept. 2008opening in Sept. 2008
Photos – 22 sep. 2008
September 2008 Staff meeting 31
Health Insurance Health Insurance - CHIS -- CHIS - Towards a financial imbalanceTowards 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 progressTechnical studies in progress
Transition to IPSAS accounting standardsTransition to IPSAS accounting standards Merit appraisal and recognition Merit appraisal and recognition - MARS & LHC -- MARS & LHC -
Results of last exerciseResults 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 5YR 2005/06: working time, administrative circulaires, long-term
SLS, salary indexationSLS, salary indexation Recours : salaires, pensions, contratsRecours : salaires, pensions, contrats
Departmental meetings Departmental meetings
SummarySummary
September 2008 Staff meeting 32
Departmental meetings Departmental meetings – ACT II– ACT II
TimetableTimetableDateDate TimeTime PlacePlace
Monday 29 Sep. 10h00 IT auditorium/bldg.
31Monday 29
Sep. 15h00AT
auditorium/bldg. 30Tuesday 30
Sep. 09h00AB
auditorium/bldg. 864Thursday 02
Oct. 09h00 Council chamber/bldg. 503
Friday 03 Oct. 09h00
TH auditorium/bldg.
4
September 2008 Staff meeting 33
Departmental meetingsDepartmental meetings – have your say– have your say
First part (15 mins)First part (15 mins) 5YR - 20105YR - 2010
importance of a 5YR (examples 1995, 2000, 2005)importance of a 5YR (examples 1995, 2000, 2005) subjects to deal withsubjects to deal with timetabletimetable
Prepare the transition with the next DGPrepare the transition with the next DG your opinion and priorities your opinion and priorities present the Staff Association survey - Oct. 08present the Staff Association survey - Oct. 08
General information General information contract policy contract policy administrative circularsadministrative circulars latest newslatest news
Second part (45 mins)Second part (45 mins) Discussion (including follow-up of general Discussion (including follow-up of general
meeting)meeting)
September 2008 Staff meeting 34
In short In short – make a successful – make a successful
transition…transition… Social securitySocial security Health insurance: Health insurance: towards a financial imbalancetowards a financial imbalance Pension Fund:Pension Fund: funding ratio objective of 125% in 20 funding ratio objective of 125% in 20
yearsyearsscenario “internal taxation of pensions”?scenario “internal taxation of pensions”?
IPSAS: IPSAS: currently shows the long-term commitments of currently shows the long-term commitments of the Member States to the staffthe Member States to the staff
Merit appraisal and recognitionMerit appraisal and recognition2007 and 2008 have shown that the MARS budget must 2007 and 2008 have shown that the MARS budget must be increasedbe increased
General information General information Working time: Working time: administrative circularsadministrative circulars Flexi-time: Flexi-time: long-term SLSlong-term SLS Salaries: Salaries: 2009 indexation2009 indexation Appeals: Appeals: salaries, pensions, contractssalaries, pensions, contracts Nursery school: Nursery school: opening of a Canteenopening of a Canteen
Act 2Act 2: Departmental meetings: Departmental meetingsYour opinion, your priorities: Your opinion, your priorities: prepare together the prepare together the
transitiontransition
September 2008 Staff meeting 35
Early departure Early departure - - Congratulations !Congratulations !