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The Staff Association and the CERN and ESO Pensioners’ Association
Having taken note of
- the course of the meetings of the Finance Committee and the Council of December 2013;
- the deliberations and decisions of the Council of March 2014;
- the questions, comments and proposals of one delegation;
- the encouraging results of the latest actuarial study.
- the CERN Pension Plan is a defined benefits scheme;
- since 2005, the indexation of pensions has become a defined benefit;
- the payment of the Fund, the pensions and their indexation, is guaranteed by the Organization (cf. Article I 3.03 of the Rules of the Fund) independently of the financial situation of the Fund;
- during the existence of the Organization, the Council, in conformity with Article VII of the Convention, must define the contributions of the Member States in order to allow the Organization to fulfil its financial obligations;
- two Resolutions1 of the Council reaffirm that the Member States have the responsibility to guarantee the continued payment of the pensions until the cessation of the rights of the last beneficiary;
- the current structural deficit is largely the result of previous decisions taken by the Council, in full knowledge of their effects on the balance of the Fund (especially the suppression of the resources guarantee decided in 1976, as well as measures in place until 1987 aimed at reducing the average age of staff by encouraging early retirement at 60 years, without compensation for the Fund);
- according to the latest actuarial study, based on the more recent and more realistic actuarial parameters, the Fund, with the implementation of corrective measures already decided, should attain a funding ratio of 95.5% in 2041 and be fully funded 30 years from now.
- even as the package of equilibration measures involving all partners (Organization, active current members, future members and pensioners) is having the expected effect, the CERN Council has begun deliberations to modify it, with the aim of no longer taking part in the effort to re-balance the Fund and to call into question our rights and benefits.
- to condemn such an approach;
- to reject any unilateral attack on the package of measures of 2010 and 20112 to which all parties committed;
- to prepare, without delay, a mobilization of personnel and pensioners, if necessary.
Demand the CERN Council
- to respect the commitment of the Organization to pay 60 MCHF per year for 30 years, taken when approving the package of equilibration measures in 2010;
- to respect and strictly enforce the competences of the governing bodies and the rights of all stakeholders3.
1 In 1986 (CERN/1628), the Council decided to establish a foundation under Swiss law, with the aim of taking over the Fund, to assure the continuity of the payment of the pension rights of each beneficiary in the event of the dissolution of CERN.
In 1996 (CERN/2165) the Council decided that before establishing such a foundation, the Fund must be financially balanced on the basis of realistic actuarial parameters, notably taking into account the liabilities related to the future indexation of the pensions.
2 Council Resolution on the restoration of full funding of the CERN Pension Fund (CERN/2972), Annex 2. “as this package constitutes an equitable distribution of efforts between all stakeholders, i.e., staff members, pensioners and the participating Organizations, its individual elements cannot be modified without revision of the entire package, always maintaining the equitable distribution model.”
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