executive committee 2012

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

3Staff Meetings / May 2012

Executive CommitteeExecutive Committee FunctionFunction Dep. Coord.Dep. Coord. Coord. CommissionCoord. Commission

Marcel AYMON Vice-President HR

Sandrine BAUDAT Member FP

Philippe DEFERT Vice-President IT Ext. Rel. / Staff Council

Nicolas DELRUELLE Member TE

Jacques FICHET Member DG

Michel GOOSSENS President

Serge GRILLOT Member EN

Céline GROBON Treasurer PH Employment conditions

Michael LUDWIG Member BE

Sonia MALLON Member GS

Jacob PANMAN Secretary PH

Flavio COSTA Permanent guest Legal

Sébastien ÉVRARD Permanent guest CAPA

Laurent FAISANDEL Permanent guest InFormAction

Frédéric GALLEAZZI Permanent guest Health and Safety

Joël LAHAYE Permanent guest Ext. Rel. / ProtSoc

Alessandro RAIMONDO Permanent guest Pensions / PFGB

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Executive Committee 2012

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SummarySummary

• LTSLSLTSLS• A long-term component for your saved leavee

• Pensions Pensions • Conditions for newcomers, audits, new PFGB member

• MARS 2012MARS 2012• How to motivate all staff

• Rules and CircularsRules and Circulars• Use of CERN cars, role of CPCRI

• Your questions Your questions • Our answers


Long-Term SLSLong-Term SLS

Philippe DefertPhilippe Defert

Vice-PresidentVice-President


New saved leave schemeNew saved leave scheme

/////////////////////Max 2 years = 440 days

Career adjustment: -2%////// -0.8%

440

+ initial additional day


New saved leave schemeNew saved leave scheme• 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),

1.Current contents of long-term leave basket is corrected by career adjustment factor (divided by 1.008)

2.If short-term leave basket contains more than 22 days, excess is transferred to long-term leave basket

3.One bonus day is granted to short term leave basket

4.Long-term leave basket is capped at 440 days


New saved leave schemeNew saved leave scheme• 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



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


Registration formRegistration form



• Current LTSLS:• Not what Not what wewe wanted wanted

• Not what Not what theythey wanted wanted

• CompromiseCompromise

• It exists (long-term component)It exists (long-term component)• Newcomers can save up to 2 years (67Newcomers can save up to 2 years (67 65) 65)

• Flexibility for allFlexibility for all

• No loss of short-term daysNo loss of short-term days

• DG’s dayDG’s day

• 5YR 2015 : Staff Association will ask for improvements

Be sure to register before 1 June

Be sure to register before 1 June

At least fo

r 0 slice!

At least fo

r 0 slice!

1-slice only is also extremely good deal


PensionsPensions

Alessandro RaimondoAlessandro Raimondo

Coordinator of the Pensions CommissionCoordinator of the Pensions Commission


• The worst of all the defined benefits pensions packages The worst of all the defined benefits pensions packages among all International Organisations.among all International Organisations.

• Newcomers must NOT be sacrificed for a pension fund Newcomers must NOT be sacrificed for a pension fund deficit dating from before their arrival at CERN.deficit dating from before their arrival at CERN.

Conditions from Jan. 2012 (reminder)Conditions from Jan. 2012 (reminder)

Org. WhenType of pension

plan

Contributions

Full pension Accumul. rate

Years tofull

pensionAge limit Annual

adjustmentTotal Employee Employer

CERN / ESO

Before Jan.12 DB

share = 1/3 + 2/370% of Last salary 2% 35yr 65yr Freeze (-8%)

then COL34.0% = 11.3% + 22.7%From

Jan.12 DBshare = 40% + 60%

70% of Average of last 3 years positions 1.85% 37yr 10 m 67yr FR*COL (-8%)

then COL28.3% = 11.3% + 17.0%


Conditions from Jan. 2012Conditions from Jan. 2012


plan

Contributions


Years tofull



CERN / ESO

Before Jan.12 DB


then COL34.0% = 11.3% + 22.7%From

Jan.12 DBshare = 40% + 60%


then COL28.3% = 11.3% + 17.0%

At least the same take-home pay.

Only pre-2012 contribute to full funding (~5.7%)

THE COMPLETION OF THE PACKAGE OF MEASURES TOWARDS RESTORING FULL FUNDINGShould 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

BUT


Evolution of life expectancy at age 65Evolution of life expectancy at age 65

+ 4 years

VZ 2010 CERN Generational Tables:Life expectancy increase included


Contribution rate for new recruitsContribution rate for new recruits

• Actuarial calculation gives (CERN/3010, page 4):

Management proposes to increase contributions from 28.33% 31.60%


Conditions from April 2012Conditions from April 2012


plan

Contributions


Years tofull



CERN / ESO

Before Jan.12 DB


then COL34.0% = 11.3% + 22.7%From

Jan.12 DBshare = 40% + 60%


then COL 31.6% = 12.64% + 18.96%

Not the same

take-home pay!

(-1.34 %)

Our position:• Not Equitable: same work, but different salary• Longevity is changed for all staff

Final outcome: CERN had to respect June 2011 decision concerning new staff

We proposed status quo until next global actuarial study


Pensions Fund AuditsPensions Fund Audits

Internal ControlInternal Control

AuditAudit

External AuditExternal Audit

FinancialFinancial

AuditAudit

State Audit Court

PWC

PWC

Pensions Fund


Financial and Internal Control AuditsFinancial and Internal Control Audits

Le Temps 03/02/2012 Financial Times 05/04/2012

PWC occupies both functions in the CERN PF letter SA + EPA to president PFGB to change this

“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 […]”


• FPGB composition reminderFPGB composition reminder (art. I 2.05, since 1 Nov. 2007) (art. I 2.05, since 1 Nov. 2007) Mandate ≤ 6 yrsMandate ≤ 6 yrs 2 nominated by CERN Council2 nominated by CERN Council 1 nominated by ESO Council1 nominated by ESO Council Employer reps.Employer reps. 1 nominated by DG of CERN1 nominated by DG of CERN 2 nominated by CERN Staff Association2 nominated by CERN Staff Association 1 nominated by ESO Staff Association 1 nominated by ESO Staff Association Employee reps.Employee reps. 1 nominated by CERN/ESO pensioners1 nominated by CERN/ESO pensioners 2 professional experts nominated by CERN Council2 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 governance gives problems in this area:

• No alternates

• Limit of term of office to maximum six years

Wrote letter to President of Council explaining this difficulty

Replacement of SA nominee in PFGBReplacement of SA nominee in PFGB

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.

“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.”


SummarySummary

• 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


MARS 2012MARS 2012

Céline GrobonCéline Grobon

Coordinator of the Employment Conditions CommissionCoordinator of the Employment Conditions Commission


MARS 2012 ceiling guidelines (SCC Feb.)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!


International indemnity savingsInternational indemnity savings

• 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

Basic salaryCERN/2687

2008 2009 2010 2011

300 250 250 200


MARS 2012 ceiling guidelines (SCC April)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


Five years of MARS 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


MARS 2011MARS 2011

• Step distribution rather similar in all career paths

• In ECE 38% get zero step (although 98% of budget used)


MARS 2011MARS 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?


MARS: our positionMARS: 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)


Rules and CircularsRules and Circulars

Marcel AymonMarcel Aymon

Vice-PresidentVice-President


CO4CO4

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.


CO4CO4

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.


CA14: Illness, accident and inability to work

Schéma a changé

•Cas devant Groupe de travail permanent

•Si réaménagement ou équipement spécial pas possibles CPCRI

•Mêmes droits• être écouté

• être assisté

Protection of members of the personnel against the financial consequences of illness, accident and inability to work – discussed at SCC of 19 April 2012


QuestionsQuestions

AnswersAnswers

executive committee 2012

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