public meeting - 14 december 2009
DESCRIPTION
Public Meeting - 14 December 2009. Why this emergency meeting?. The facts: what has been happening recently? Our position: why is this not acceptable? The financial situation of the Fund: record deficit The dangers involved: what to look out for Why act? we need your support!. - PowerPoint PPT PresentationTRANSCRIPT
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!
3Public 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
5Public meeting / 14 Dec.2009
Information to CERN Staff Information to CERN Staff Staff meetings – Sept/Oct. 2009Staff meetings – Sept/Oct. 2009
6Public meeting / 14 Dec.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
7Public meeting / 14 Dec.2009
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
8Public 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: 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!
9Public meeting / 14 Dec.2009
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
10Public meeting / 14 Dec.2009
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.
11Public meeting / 14 Dec.2009
Why this emergency meeting?Why this emergency meeting?
• 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?
• The financial situation of the Fund: The financial situation of the Fund: record deficitrecord 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!
12Public meeting / 14 Dec.2009
Situation of the Fund Situation of the Fund Finance Committee – 11 Nov. 2009Finance Committee – 11 Nov. 2009
13Public meeting / 14 Dec.2009
Situation of the Fund Situation of the Fund Finance Committee – 11 Nov. 2009Finance Committee – 11 Nov. 2009
Return on assetsin 2009 : ~ +10%
14
Situation of the Fund Situation of the Fund Finance Committee – 11 Nov. 2009Finance Committee – 11 Nov. 2009
Public meeting / 14 Dec.2009
+114 MCHF/year
+0 MCHF/year
15Public meeting / 14 Dec.2009
Situation of the Fund Situation of the Fund Finance Committee – 11 Nov. 2009Finance Committee – 11 Nov. 2009
16Public meeting / 14 Dec.2009
Why this emergency meeting?Why this emergency meeting?
• 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?
• The financial situation of the Fund: record deficitThe financial situation of the Fund: record deficit
• The dangers involved: The dangers involved: what to look out forwhat to look out for
• Why act? we need your support! Why act? we need your support!
17Public meeting / 14 Dec.2009
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?...........................
18Public meeting / 14 Dec.2009
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).
19Public meeting / 14 Dec.2009
Information to CERN Staff Information to CERN Staff Staff meetings – Sept/Oct. 2009Staff meetings – Sept/Oct. 2009
20Public meeting / 14 Dec.2009
Information to CERN Staff Information to CERN Staff Staff meetings – Sept/Oct. 2009Staff meetings – Sept/Oct. 2009
21Public meeting / 14 Dec.2009
Information to CERN Staff Information to CERN Staff Staff meetings – Sept/Oct. 2009Staff meetings – Sept/Oct. 2009
22Public meeting / 14 Dec.2009
Why this emergency meeting?Why this emergency meeting?
• 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?
• 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? Why act? we need your support!we need your support!
23Public meeting / 14 Dec.2009
Your priority issues Your priority issues - Staff Association survey/Oct. 2008- Staff Association survey/Oct. 2008
1st
85
106
113114
100
24Public meeting / 14 Dec.2009
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.
25Public meeting / 14 Dec.2009
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?
26Public meeting / 14 Dec.2009
Council WG Council WG – OSNES– OSNES: Dec. 2006: Dec. 2006
27Public meeting / 14 Dec.2009
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