Public Meeting - 14 December 2009. 2 Public meeting / 14 Dec.2009 Why this emergency meeting? The facts: what has been happening recently? The facts:

A S S O C I A T I O NStaffdu Personnel

Public Meeting - 14 December 2009Public Meeting - 14 December 2009

2Public meeting / 14 Dec.2009

Why this emergency meeting?Why this emergency meeting?

• The facts: The facts: what has been happening recently?what has been happening recently?

• Our position: Our position: why is this not acceptable?why is this not acceptable?

• The financial situation of the Fund: The financial situation of the Fund: record deficitrecord deficit

• The dangers involved: The dangers involved: what to look out forwhat to look out for

• Why act? Why act? we need your support!we need your support!








4

CERN Council

Public meeting / 14 Dec.2009

Reminder: Pension Fund bodiesReminder: Pension Fund bodies

Pension Fund Governing Board

Investment Committee

General Manager

Pension Fund Unit

Pension Fund new Governance since June 2007


Information to CERN Staff Information to CERN Staff Staff meetings – Sept/Oct. 2009Staff meetings – Sept/Oct. 2009


Chronology of eventsChronology of events

• 12 Nov.: Intervention of the SA at the PFGB meeting• New information: experts of PFGB are invited to December Council meeting

• Our reaction: ask for D. Duret (Vice-President) to be invited at the same time

• 3 Dec.: Meeting with President of CERN Council• No agreement reached

• 9 Dec.: Open Letter* to President of CERN Council

• 10 Dec.: Information Flash* to the Staff and Pensioners

• 10 Dec.: Answer* from President of CERN Council

• Today: Answer* to President of CERN Council

• Today: Public meeting* documentation available on the SA website


Position of President of CERN CouncilPosition of President of CERN Council

Agenda of CERN Council meeting Agenda of CERN Council meeting – 17 & 18 Dec. 2009– 17 & 18 Dec. 2009

• Restricted sessionRestricted session• 14. Pension Fund14. Pension Fund

• - Report by the Chairman of the Governing Board- Report by the Chairman of the Governing Board

• - Discussion of the Report of Working Group 2 White Paper- Discussion of the Report of Working Group 2 White Paper

• - Terms of Appointment of the members of the Investment - Terms of Appointment of the members of the Investment Committee - CERN/2888/RACommittee - CERN/2888/RA

• Closed sessionClosed session• 2. Pension Fund2. Pension Fund

• - Further discussion of the Report of Working Group 2- Further discussion of the Report of Working Group 2

• Open sessionOpen session• 7. Adjustment of Pensions for 2010 7. Adjustment of Pensions for 2010

Employee Rep. invited

PFGB experts invited

but Employee Rep. not invited





• The financial situation of the Fund: record deficitThe financial situation of the Fund: record deficit

• The dangers involved: what to look out forThe dangers involved: what to look out for

• Why act? we need your support! Why act? we need your support!


Council WG Council WG (Levaux) (Levaux) – Pension Fund new Governance – Pension Fund new Governance - June 07 - June 07

Composition of PFGB (members)Composition of PFGB (members)

Two nominated by CERN CouncilTwo nominated by CERN Council One nominated by ESO CouncilOne nominated by ESO Council One nominated by DG of CERNOne nominated by DG of CERN

Two nominated by CERN Staff AssociationTwo nominated by CERN Staff Association One nominated by ESO Staff Association One nominated by ESO Staff Association Employee reps.Employee reps. One nominated by CERN/ESO pensionersOne nominated by CERN/ESO pensioners

Two professional experts nominated by CERN CouncilTwo professional experts nominated by CERN Council

Pension Fund Governing BoardPension Fund Governing Board

Employer reps.President

nominated by CERN Council

Vice-President

nominated by CERN Council


Our position: problem of principleOur position: problem of principle

• We understand entirely that the Member State We understand entirely that the Member State

representatives need to meet on their own.representatives need to meet on their own.

• In the area of pensions, there are two stakeholders:In the area of pensions, there are two stakeholders:• The “employer” college The “employer” college • The “employee” collegeThe “employee” college

• The experts of the PFGB have a duty to be impartialThe experts of the PFGB have a duty to be impartial

• It is unacceptable that the party which appoints the experts It is unacceptable that the party which appoints the experts

receives them in the absence of the other party.receives them in the absence of the other party.



• The facts: what has been happening recently?The facts: what has been happening recently?

• Our position: why is this not acceptable?Our position: why is this not acceptable?





Situation of the Fund Situation of the Fund Finance Committee – 11 Nov. 2009Finance Committee – 11 Nov. 2009



Return on assetsin 2009 : ~ +10%

14


Public meeting / 14 Dec.2009

+114 MCHF/year

+0 MCHF/year











Situation of the Fund: our viewsSituation of the Fund: our views

• Deficit: Deficit: • Can be mostly explained by past decisions by CouncilCan be mostly explained by past decisions by Council

• Its existence has been known by Council for a long timeIts existence has been known by Council for a long time

• In the past, Council has shown no real intention to make up this deficitIn the past, Council has shown no real intention to make up this deficit

• It has become colossal: 2100 MCHFIt has become colossal: 2100 MCHF

• The traditional levers are ineffectiveThe traditional levers are ineffective• Benefits: limitation due to acquired rights → future staffBenefits: limitation due to acquired rights → future staff

• Contributions: very little room for manoeuvre → rate > 30% of salaryContributions: very little room for manoeuvre → rate > 30% of salary

• Full FundingFull Funding• Decided by Council in 2007: desire to keep the Fund balancedDecided by Council in 2007: desire to keep the Fund balanced

• White Paper from PFGB in 2009: White Paper from PFGB in 2009:

• Responsibility of CERN Council → additional “employer” payments requestedResponsibility of CERN Council → additional “employer” payments requested

• Current dangers:Current dangers:

• Burying one’s head in the sand again?...............................Burying one’s head in the sand again?............................... • ColossalColossal deficit deficit → a→ attack on our benefits?...........................ttack on our benefits?...........................


Legal frameworkLegal framework

• Obligation of CERN• to guarantee benefits regardless of funding situation

• derived from its Status of International Organization• CERN has two roles: Employer + State

• CERN has its own social security system

• Acquired rights: • Applicable to International Civil Servants

• Wide jurisprudence from ILOAT/UNAT

• Why do they exist for International Civil Servants?• To guarantee the officials’ independence vis-à-vis their Member States

• To compensate for the officials’ absence of a right to vote in the State which is the IO (a right granted to other citizens in their national system to elect their government).















Your priority issues Your priority issues - Staff Association survey/Oct. 2008- Staff Association survey/Oct. 2008

1st

85

106

113114

100


Our position: problem of principleOur position: problem of principle

• We understand entirely that the Member State We understand entirely that the Member State

representatives need to meet on their own.representatives need to meet on their own.

• In the area of pensions, there are two stakeholders:In the area of pensions, there are two stakeholders:• The “employer” college The “employer” college • The “employee” collegeThe “employee” college

• The experts of the PFGB have a duty to be impartialThe experts of the PFGB have a duty to be impartial

• It is unacceptable that the party which appoints the experts It is unacceptable that the party which appoints the experts

receives them in the absence of the other party.receives them in the absence of the other party.


Why act now: the StakesWhy act now: the Stakes

• In the PFGB

• Maintain the joint nature of the committee

• Reinforce the role of Vice-President

• Respect the “employee” college?

• Between CERN Council and PFGB

• Avoid another problem of confidence

• For the “employee” college

• Promised benefits (acquired rights)

• Pensions today, and tomorrow?


Council WG Council WG – OSNES– OSNES: Dec. 2006: Dec. 2006


Council WG Council WG – OSNES– OSNES: Dec. 2006: Dec. 2006

A S S O C I A T I O NStaffdu Personnel

Public Meeting - 14 December 2009Public Meeting - 14 December 2009

Appeal to the staff and pensionersLet us join forces!

Thursday 17 December

Documents

Public Meeting - 14 December 2009. 2 Public meeting / 14 Dec.2009 Why this emergency meeting? The facts: what has been happening recently? The facts: