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Executive Committee 2012

Executive Committee 2012. new. new. new. new. new. new. new. new. new. new. Summary. LTSLS A long-term component for your saved leav e Pensions Conditions for newcomers, audits, new PFGB member MARS 2012 How to motivate all staff Rules and Circulars

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Executive Committee 2012

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  1. Executive Committee 2012 new new new new new new new new new new

  2. Summary • LTSLS • A long-term component for your saved leave • Pensions • Conditions for newcomers, audits, new PFGB member • MARS 2012 • How to motivate all staff • Rules and Circulars • Use of CERN cars, role of CPCRI • Your questions • Our answers

  3. Long-Term SLSPhilippe DefertVice-President

  4. New savedleavescheme + initial additional day 440 ///////////////////// Max 2 years = 440 days Career adjustment: -2% ////// -0.8%

  5. New savedleavescheme • Any staff may participate to the saved leave scheme • 0, 1, 2, 3, or 4 slices • Cost respectively • 0%,1,5%, 4%, 6,5%, or 9% of basic salary • Each slice is worth 5,5 days in the short term basket • Closure of each leave year (30 September), • Current contents of long-term leave basket is corrected by career adjustment factor(divided by 1.008) • If short-term leave basket contains more than 22 days, excess is transferred to long-term leave basket • One bonus day is granted to short term leave basket • Long-term leave basket is capped at 440 days

  6. New savedleavescheme • When registering before 1st of June 2012 •  one additional bonus day granted • When registering for the first time, you can modify your current (STSLS) level of participation • Afterwards, your participation shall be tacitly renewed, cancelled or modified on a twelve months basis with a notice period of at least two months prior to the end date

  7. New savedleavescheme • Some explicit examples: • 4 slices during 10 years 224 days ( −7) • 2 slices during 20 years 226 days (−15) • 0 slice during 37 years 37 days ( −1) • 4 slices during 20 years 431 days (−30) • Initial bonus (until 31 May 2012) and yearly bonus included • Transitory measure: • No cap on any basket Sep. 2012

  8. Registration form

  9. New savedleavescheme • Current LTSLS: • Not what we wanted • Not what they wanted • Compromise • It exists (long-term component) • Newcomers can save up to 2 years (67 65) • Flexibility for all • No loss of short-term days • DG’s day • 5YR 2015 : Staff Association will ask for improvements Be sure to register before 1 June At least for 0 slice! 1-slice only is also extremely good deal

  10. PensionsAlessandro RaimondoCoordinator of the Pensions Commission

  11. Conditions from Jan. 2012 (reminder) • The worst of all the defined benefits pensions packages among all International Organisations. • Newcomers must NOT be sacrificed for a pension fund deficit dating from before their arrival at CERN.

  12. Conditions from Jan. 2012 Only pre-2012 contribute to full funding (~5.7%) At least the same take-home pay. BUT THE COMPLETION OF THE PACKAGE OF MEASURES TOWARDS RESTORING FULL FUNDING Should a change in these parameters, such as an increase in longevity, make it apparent that this rate is no longer sufficient to finance the pension promise made to future recruits, it may prove necessary to propose an increase in the rate. (CERN/2972 at page 5) Updated actuarial study

  13. Evolution of life expectancy at age 65 + 4 years VZ 2010 CERN Generational Tables: Life expectancy increase included

  14. Contribution rate for new recruits • Actuarial calculation gives (CERN/3010, page 4): Management proposes to increase contributions from 28.33%  31.60%

  15. Conditions from April 2012 Not the same take-home pay! (-1.34 %) • Our position: • Not Equitable: same work, but different salary • Longevity is changed for all staff • We proposed status quo until next global actuarial study • Final outcome: • CERN had to respect June 2011 decision concerning new staff

  16. Pensions Fund Audits External Audit State Audit Court Internal Control Audit Financial Audit PWC PWC Pensions Fund

  17. Financial and Internal Control Audits Le Temps 03/02/2012 Financial Times 05/04/2012 “Therefore, on behalf of the members and beneficiaies of the Pensions Fund, we invite to follow the advice of the Auditors of the Organisation to ensure that CERN’s Internal Audit Service also carries out the Internal Audit of the Fund […]” PWC occupies both functions in the CERN PF  letter SA + EPA to president PFGB to change this

  18. Replacement of SA nominee in PFGB • FPGB composition reminder (art. I 2.05, since 1 Nov. 2007) Mandate ≤ 6 yrs • 2 nominated by CERN Council • 1 nominated by ESO Council Employer reps. • 1 nominated by DG of CERN • 2 nominated by CERN Staff Association • 1 nominated by ESO Staff Association Employee reps. • 1 nominated by CERN/ESO pensioners • 2 professional experts nominated by CERN Council • Resignation of one of the two SA nominees in PFGB in March • Finding replacement was not trivial because new governancegivesproblems in this area: • No alternates • Limit of term of office to maximum six years Wroteletter to President of Council explainingthisdifficulty “However, given the difficulty of the current situation, I fell it has become urgent to review and amend the Rules governing the PFGB, so that a transition, whether sudden or not, can take place with more serenity.” In agreement with Pensions Commission the second SA nominee in PFGB was designated by Staff Council on 17 April 2012, mandate starting 1 May 2012.

  19. Summary • New staff (1 January 2012) • Conditions much less favorable than pre-2012 • Moreover, introduction longevity effect introduced  higher contribution for same salary position (less take-home pay for same work) • Separation of Audit suppliers for different mandates • Involve CERN Audit in the process • Governance of the PFGB • SA nominated new member Many burning issues in coming months

  20. MARS 2012Céline GrobonCoordinator of the Employment Conditions Commission

  21. MARS 2012 ceiling guidelines (SCC Feb.) • Two steps per eligible person (bands a, b, c) • One step in ECE • AES constant • First time in six years of MARS: No additional step budget!

  22. International indemnity savings Basic salary CERN/2687 • Savings II scheme  unique purpose is to increase budget for MARS • Over a complete career every IC eligible for II generates: average of 6 recurrent steps • Nb. additional step in previous years: 1200 in total • Recurrent cost of these 1200 steps not covered by savings II over the period 2007−2011 • Take larger view: period 2007−2015 (until next 5 YR 2015) # Yr

  23. MARS 2012 ceiling guidelines (SCC April) • SA disagrees with absence additional step budget • Arbitration asked: • Calculate global savings II for period 2007−2015 (next 5 YR 2015) • Subtract total cost additional steps already given • Distribute resulting anticipated savings equally over 4 years 2012−2015  predictability and ease of planning

  24. Five years of MARS • MAPS • Find 25-30% of particularly meritorious staff  P+1 (very rarely P+2) • Understood and acceptable in CERN’s quasi-academic environment based on Team work • MARS • Find at least 25% “P-only” victims • Many Group leaders attribute “P-only” step on a rotating basis. • Additional steps go to “P+2” and above

  25. MARS 2011 • Step distribution rather similar in all career paths • In ECE 38% get zero step (although 98% of budget used)

  26. MARS 2011 • The P+1, P+2, … steps seem to go primarily to staff in the first 25 years of their career. • Do we see the “orange zone” reappear in a different form?

  27. MARS: our position • Goals introduction of MARS in 2007 reached? • Differentiate between staff and reward high-flyers (MOMARS) • Motivate all staff (analysis HR staff enquiry) • Are the large resources invested in the yearly MARS exercise justified by the results obtained? Merit system à la MARS: individual against team not optimal for CERN, where team work is the main strength Discuss changes advancement/promotion system in 5YR 2015 • Increase step value and revert to MAPS-like step distribution • Eliminate unnecessary costly transitions (align salary bands)

  28. Rules and CircularsMarcel AymonVice-President

  29. CO4 Conditions for use by members of the CERN personnel of vehicles belonging to or rented by CERN Discussed at SCC of 15 February 2012 Conditions of use • The use of the vehicle must be authorized. • The use for private purposes (e.g., transporting family members or shopping) is prohibited in all circumstances, including as part of an on-call service. • Transporting passengers and / or goods is allowed only when it enters the official activities of CERN. • Passengers should carry the necessary documents (identity papers, residence permits, visas). • Goods should be transported obeying safety and custom regulations, where applicable.

  30. CO4 Insurance • Vehicles belonging to CERN are insured for liability. They are not, generally insured against all risks (“Casco"). However, such coverage can be requested. • Vehicles rented by CERN are insured against all risks and liability (“Casco"), under the conditions set by the rental company. • Goods used for business activities present in the vehicle are not insured, unless they have been insured explicitly by taking out a “transport” insurance. • Personal effects transported in the vehicle are only covered with a “Casco”-type insurance and only up to the allowable limits per claim per vehicle, excluding cash, papers / securities, credit cards , art objects, jewelry, telecommunications, video or sound or data registration equipment. Not observance of the Rules • Any breach of the Operational Circular 4 by a staff member may result in disciplinary sanctions defined in the Staff Rules and Regulations.

  31. CA14: Illness, accident and inability to work Protection of members of the personnel against the financial consequences of illness, accident and inability to work – discussed at SCC of 19 April 2012 Schéma a changé • Cas devant Groupe de travail permanent • Si réaménagement ou équipement spécial pas possibles  CPCRI • Mêmes droits • être écouté • être assisté

  32. QuestionsAnswers

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