Act 1 : Public meeting Making a successful transition! 23 September 2008

1. Act 1: Public meeting Making a successful transition! 23 September 2008

2. LHC - First congratulations !

3. Health insurance - CHIS - Towards a financial imbalance Pension Fund - PF - Decision - June 08: is CERN Council assuming its responsibilities? Technical studies in progress Transition to IPSAS accounting standards Merit appraisal and recognition - MARS & LHC - Results of the last exercise And tomorrow, what will be the advancement budget? General Information 5YR-2005/06 : working time, administrative circulars , long-term SLS, indexation of salaries Appeals: salaries, pensions, contracts Departmental meetings Summary

4. Long-Term Care – Sept. 07 COUNCIL decision DEC.07 CHIS - Reminder daily allowance: • increased (85 → 100 CHF) • adjusted by DG (= 50% of the costs in a Swiss EMS)

5. « We’ve f(o)und our money! » – Echo 17 Dec. 07 Creation of a fund of 93 MCHF composed of Reserve for the long-term care scheme Reserve for the general HIS, of which: Variations from year to year 6 MCHF (≈ 10% of annual expenditure) Catastrophic risk 20 MCHF (≈ 33% of annual expenditure) Expenditure committed, but not yet reimbursed 12 MCHF (≈ 20% of annual expenditure) Invested in two investment funds (20% equities, 80% bonds) CHIS accounts separated from those of the Organization CHIS - Reminder

6. Actuarial review 2007: financial imbalance from 2010 Latest news 1st semester 2008 negative balance (expenditure: +10%) imbalance foreseen from 2008 CHIS – Financial situation 2010

7. CHIS – Financial situation • Imbalance : what to do for the time being? • Strong annual fluctuations are nothing new • Reserve funds are foreseen to deal with the situation (+10% ≈ 6 MCHF) • CHIS will be a topic of the next 5YR - 2010

8. CHIS– Ensure the future of our scheme • 1st step achieved : creation of a capitalized fund – 93 MCHF • 5YR–2010 Obtain the implementation of two recommendations by the actuary • Smooth the increase in costs due to ageing by an annual increase of 1% of the contribution rate (Organization + contributing members): 10%  10,1%  10,2% … • If medical inflation increases more rapidly than salaries and pensions, the differential should be added to the increase in contribution rate • CHIS Board : subgroup “Future of the Scheme” Your opinion interests us : SA survey - Oct. 08 • Reminder : CHIS = Mutual benefit and support scheme For each franc spent, half is paid by the contributing member Making savings for the scheme means making savings for ourselves !

9. Health insurance - CHIS - Towards a financial imbalance Pension Fund - PF - Decision - June 08: is CERN Council assuming its responsibilities? Technical studies in progress Transistion to IPSAS accoutning standards Merit appraisal and recognition - MARS & LHC - Results of the last exercise And tomorrow, which advancement budget? General information 5YR 2005/06: working time, administrative circulars, long-term SLS, indexation of salaries Appeals: salaries, pensions, contracts Departmental meetings Summary

10. Pensions– Balance of our Fund

11. COUNCIL decision 2002 Pensions– Balance of our Fund • Actuarial review 2007 : which recommendation by the GBPF? CERN Pensioners + STAFF pensioners ECHO n°52

12. Pensions– Balance of our Fund

13. Pension Fund Paid pensions Taxation of pensions– current situation Active members CERN Markets Beneficiaries Tax

14. Pension Fund Paid pensions Taxation of pensions– for tomorrow? Active members CERN Markets Internal Taxation X Beneficiaries Tax

15. GBPF – WG2 : funding policy and principles PFGB recommandation MID 09 Pensions– Technical studies in progress Objective: 125% in 20 years SA: only realistic scenario = Internal taxation

16. Health insurance - CHIS - Towards a financial imbalance Pension Fund - PF - Decision - June 08: is CERN Council assuming its responsibilities? Technical studies in progress Transition to IPSAS accounting standards Merit appraisal and recognition - MARS & LHC - Results of the last exercise And tomorrow, which advancement budget? General information 5YR 2005/06: working time, administrative circulars, long-term SLS, indexation of salaries Appeals: salaries, pensions, contracts Departmental meetings Summary

17. IPSAS – new main budget items related to the staff • Paid leave • The accumulated present value to be paid in the future to staff members when they will be absent for annual, saved or compensation leave reasons • Post-employment benefits Estimatedactuarial liability towards employed and retired members of the CERN personnel CERN/2787 CERN/2787 provision

18. Health insurance - CHIS - Towards a financial imbalance Pension Fund - PF - Decision - June 08: is CERN Council assuming its responsibilities? Technical studies in progress Transition to IPSAS accounting standards Merit appraisal and recognition - MARS & LHC - Results of last exercise And tomorrow, what will be the advancement budget? General information 5YR 2005/06: working time, administrative circulars, long-term SLS, indexation of salaries Appeals: salaries, pensions, contracts Departmental meetings Summary

19. MARS 2008- results / career path

20. MARS 2008– steps / population guidelines CCP-2008/4 grouping

21. LHC Oct. 08– results / career path • Reminder: exercise without SCC guidelines

22. 2007 & 2008 - steps / population MARS 08 + LHC Oct. 08 ≈ Exercise 2007

23. Merit recognition – 2 years later… • MARS 2008 • Global use of Advancement & Financial Awards budgets • Use of budgets per career path • Percentage of « periodic only » • LHC Oct. 08 • Global use of Advancement & Financial Awards budgets • Use of budgets per career path: bias observed • 2007-2008 : objectives reached with difficulty thanks to additional budget in 2007 (5YR-05) and 2008 (LHC) Without additional budget, this shortfall must be managed • From 2009 : Additional budget is needed so that the merit of each person can be adequately recognized X

24. Health insurance - CHIS - Towards a financial imbalance Pension Fund - PF - Decision - June 08: is CERN Council assuming its responsibilities? Technical studies in progress Transition to IPSAS accounting standards Merit appraisal and recognition - MARS & LHC - Results of last exercise And tomorrow, which advancement budget? General information 5YR-2005/06 : working time, administrative circulars, long-term SLS, indexation of salaries Appeals : salaries, pensions, contracts Departmental meetings Summary

25. Administrative Circulars • What progress has been made? • AC 4 : Unemployment insurance • AC 12A, AC 12B : Education fees • AC 26 : Recognition of merit of Staff members • AC 30 : Indemnities and reimbursements on arrival/departure • Working time • Overtime, stand-by duty, shift work • Chap.III : approved by CERN Council in June 2008 • AC : being drafted

26. Saved Leave Scheme • Short-term Saved Leave:« STSL » in existence since Jan. 08 • Ceiling on 30 September Annual leave: 30 days STSL : 22 j • 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 : early retirement • The DG had promised to study the conditions for this new system before the end of 2007, with implementation in 2008, if an agreement is reached at SCC. • With no agreement reached, discussions will start up again with the next Management. 52 days max.on « annual leave » account

27. Indexation of salaries – Evolution since 2001 +4,2% +3,2% RNM = average movements of the real net salaries of civil servants Long-term hypothetical indexation = +2% / yr RNM < 0 RNM > 0 CERN salary index = 1,6% / year

28. COUNCIL decision DEC.08 Indexation des salaires – au 1er janvier 2009 • Calculation method : • Approved by Council - 5YR 2000 & 5YR 2005 • Clear objective: maintain between two 5YR the existing ratio between the salaries of CERN and our comparators • Reminder of difference 5YR 2005 : -20% on average • Has always been applied since 2001 • Year of start-up of LHC : what message does this give to the staff ? • Legally : it is a guide • Our position : • CERN must remain a centre of excellence ! • The method must be applied to avoid a double penalty ! • If necessary, we will have to go and get our indexation !

29. ILOAT judgement FEB.09 Appeals – on three topics • Salaries (5YR-2005), Contract policy, Pensions details • Complaint • CERN reply • Rejoinder of complainant • CERN surrejoinder available from your delegates

30. Nursery School – Canteen Project Opening of the new canteen: beginning Oct.08 • Project approved – Sept.07 Ajouter photo batiment Photos – 22 sep. 2008

31. Health Insurance - CHIS - Towards a financial imbalance Pension Fund - PF - Decision - June 08: is CERN Council assuming its responsibilities? Technical studies in progress Transition to IPSAS accounting standards Merit appraisal and recognition - MARS & LHC - Results of last exercise And tomorrow, which advancement budget? General information 5YR 2005/06: working time, administrative circulaires, long-term SLS, salary indexation Recours : salaires, pensions, contrats Departmental meetings Summary

32. Departmental meetings – ACT II Timetable

33. Departmental meetings– have your say • First part (15 mins) • 5YR - 2010 • importance of a 5YR (examples 1995, 2000, 2005) • subjects to deal with • timetable • Prepare the transition with the next DG • your opinion and priorities • present the Staff Association survey - Oct. 08 • General information • contract policy • administrative circulars • latest news • Second part (45 mins) • Discussion (including follow-up of general meeting)

34. In short – make a successful transition… • Social security • Health insurance: towards a financial imbalance • Pension Fund:funding ratio objective of 125% in 20 years scenario “internal taxation of pensions”? • IPSAS: currently shows the long-term commitments of the Member States to the staff • Merit appraisal and recognition 2007 and 2008 have shown that the MARS budget must be increased • General information • Working time: administrative circulars • Flexi-time: long-term SLS • Salaries: 2009 indexation • Appeals: salaries, pensions, contracts • Nursery school: opening of a Canteen • Act 2: Departmental meetings • Your opinion, your priorities: prepare together the transition 5YR-2010 MID 2009 EARLY 2009 END 2008 2009 DEC. 2008 FEB. 2009 OCT. 2008 NEXT WEEK

35. Early departure - Congratulations !