EXIGENCIA BÁSICA HS 1: PROTECCIÓN CONTRA LA HUMEDAD
1. Muros en contacto con el terreno Grado de impermeabilidad
EUR millions 31.12.2010 31.12.2009 Pensions – Staff 32 801 33 316 Pensions – others 840 663
Joint Sickness Insurance Scheme 3 531 3 263
Total 37 172 37 242
2.12.1 Pensions – Staff
In accordance with Article 83 of the Staff Regulations, the payment of the benefits provided for in the staff pension scheme (PSEO: Pension Scheme of European Officials) constitutes a charge to the EU's budget. The scheme is not funded, but the Member States guarantee the payment of these benefits collectively according to the scale fixed for the financing of this expenditure. In addition, officials contribute one third to the long- term financing of this scheme via a compulsory contribution.
The liabilities of the pension scheme were assessed on the basis of the number of staff and retired staff at 31 December 2010 and on the rules of the Staff Regulations applicable at this date. This valuation was carried out in accordance with the methodology of IPSAS 25 (and therefore also EU accounting rule 12). The method used to calculate this liability is the projected unit credit method. The main actuarial assumptions available at the valuation date and used on the valuation were as follows:
Actuarial Assumptions 31.12.2010 31.12.2009
Nominal discount rate 4.6% 4.5%
Expected inflation rate 2.1% 2.5%
Real discount rate 2.4% 2.0%
Probability of marriage: Man/Woman 84%/38% 84%/38%
General Salary Growth/pension revaluation 0% 0% 2008 International Civil Servants Life Table Yes Yes
Liabilities cover the rights previously defined for the following persons:
1. Staff in active employment at 31/12/2010 in all Institutions and Agencies included in the scheme; 2. Staff in a deferred situation, i.e. who have temporally or definitively left the Institutions but leaving their
pension rights in the pension scheme (and having accumulated at least 10 years of service); 3. Former officials and other servants benefiting from a retirement pension;
4. Former officials and other servants benefiting from a invalidity pension; 5. Former officials and other servants benefiting from an invalidity allowance; 6. The recipients of a survivor pension (widows or widowers, orphans, dependants). The principal points to note are (see also table below for main movements):
- The gross actuarial liability was valued at EUR 36 639 million at 31 December 2010 (2009: EUR 37 215 million). Added to this is a co-efficient corrector effect of EUR 1 063 million (2009: EUR 1 079 million). Taxes payable by beneficiaries are deducted from the total gross liability to arrive at the net liability included on the balance sheet (since tax is deducted on the payment of pensions and credited to the EU's revenue in the year of payment.) This net liability (gross liability less taxes) at 31 December 2010 has thus been estimated at EUR 32 801 million.
2.12.2 Pensions – Others
This refers to the liability relating to the pension obligations towards Members and former Members of the Commission, the Court of Justice (and General Court) and the Court of Auditors, the Secretaries General of the Council, the Ombudsman, the European Data Protection Supervisor, and the European Union Civil Service Tribunal. Also included under this heading is a liability relating to the pensions of Members of the European Parliament.
2.12.3 Joint Sickness Insurance Scheme
A valuation is also made for the estimated liability that the EU has regarding its contributions to the Joint Sickness Insurance Scheme in relation to its retired staff. The gross liability has been valued at EUR 3 791 million and plan assets of EUR 260 million are deducted from the gross liability to arrive at the net amount. The discount rate and the general salary growth used in the calculation are the same as those used in the staff pension valuation.
Movement in Gross Employee Benefits liability EUR millions Staff pension
liability
Sickness Insurance
Gross Liability at 31 December 2009 37 215 3 535
Service/normal cost 1 331 188
Interest cost 1 709 169
Benefits paid (1 131) (95)
Actuarial gains (2 566) (6)
Change due to newcomers 81 -
Gross Liability at 31 December 2010 36 639 3 791
2.13 LONG-TERM PROVISIONS
EUR millions Amount at 31.12.2009 Additional provisions Unused amounts reversed Amounts used Transfer to short-term Change in estimation Amount at 31.12.2010 Legal cases 413 30 (136) (1) 0 0 306 Nuclear site dismantlement 908 0 0 (3) (21) 21 905 Financial 76 38 0 0 (30) 2 86 Other 72 18 (9) (55) (6) 0 20 Total 1 469 86 (145) (59) (57) 23 1 317 Legal casesThis is the estimate of amounts that will probably have to be paid out after 2011 in relation to a number of ongoing legal cases. The largest portion, EUR 300 million, concerns court cases pending at 31 December 2010 in relation to financial corrections for EAGF and other court cases concerning agricultural expenditure.
Nuclear site dismantlement
In 2008 a consortium of independent experts made an update of their 2003 study into the estimated costs of the decommissioning of the JRC nuclear facilities and waste management programme. Their revised estimate of EUR 1 222 million (previously EUR 1 145 million) is taken as the basis for the provision to be included in the financial statements. In accordance with the EU accounting rules, this estimate is indexed for inflation and then discounted to its net present value (using the Euro zero-coupon swap curve). At 31 December 2010, this resulted in a total provision of EUR 926 million split between amounts expected to be paid in 2011 (EUR 21 million) and afterwards (EUR 905 million). In view of the estimated duration of this programme (around 20 years), it should be pointed out that there is some uncertainty about this estimate, and the final cost could be different from the amounts currently entered.
Financial provisions
These concern provisions which represent the estimated losses that will be incurred in relation to the guarantees given under the SME Guarantee Facility 1998, the SME Guarantee Facility 2001 and the SME Guarantee Facility 2007 under CIP, where the European Investment Fund (EIF) is empowered to issue guarantees in its own name but on behalf of and at the risk of the Commission. The financial risk linked to the drawn and undrawn guarantees is, however, capped. Long-term financial provisions are discounted to their net present value (using the Euro Swap annual rate).
Other provisions
The main amount here concerns the estimates of the EU’s contributions to various Member States under the Emergency Veterinary Fund for certain animal disease outbreaks, totalling EUR 12 million (2009: EUR 60 million) split between amounts expected to be settled in 2011 (EUR 10 million) and later (EUR 2 million).
2.14
LONG-TERM FINANCIAL LIABILITIES
EUR millions MFA Euratom loans BOP ECSC in liquidation Total Total at 31.12.2009 587 484 9 303 225 10 599 New borrowings - - 2 850 - 2 850 Repayments (84) (17) - - (101) Exchange differences - 2 - 6 8
Changes in carrying amount - - 93 - 93
Total at 31.12.2010 503 469 12 246 231 13 449
Amount due < 1 year - - 2 004 - 2 004
Amount due > 1 year 503 469 10 242 231 11 445
This heading includes borrowings due by the European Union maturing in over one year. Borrowings include debts evidenced by certificates amounting to EUR 13 211 million (2009: EUR 10 324 million). The changes in carrying amount correspond to the change in accrued interests.
The effective interest rates (expressed as a range of interest rates) were as follows:
Borrowings 31.12.2010 31.12.2009
Macro Financial Assistance (MFA) 0.99%-4.54% 0.9625%-4.54%
Euratom 0.987%-5.6775% 0.9031%-5.6775%
BOP 2.375%-3.625% 3.125%-3.625%
ECSC in liquidation 0.556%-9.2714% 0.346%-9.2714%
2.15
OTHER LONG-TERM LIABILITIES
EUR millions
31.12.2010 31.12.2009
Finance Leasing debts 1 672 1 736
Buildings paid for in instalments 382 395
Other 50 47
Total 2 104 2 178