Public Meeting - 14 December 2009

1. Public Meeting - 14 December 2009

2. Why this emergency meeting? Public meeting / 14 Dec.2009 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!

3. Why this emergency meeting? Public meeting / 14 Dec.2009 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!

4. Reminder: Pension Fund bodies CERN Council Pension Fund new Governance since June 2007 Pension Fund Governing Board Investment Committee General Manager Pension Fund Unit Public meeting / 14 Dec.2009

5. Information to CERN Staff Staff meetings – Sept/Oct. 2009 Public meeting / 14 Dec.2009

6. Chronology of events *documentation available on the SA website Public meeting / 14 Dec.2009 • 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

7. Position of President of CERN Council Employee Rep. invited PFGB experts invited but Employee Rep. not invited Public meeting / 14 Dec.2009 Agenda of CERN Council meeting – 17 & 18 Dec. 2009 • Restricted session • 14. Pension Fund • - Report by the Chairman of the Governing Board • - Discussion of the Report of Working Group 2 White Paper • - Terms of Appointment of the members of the Investment Committee - CERN/2888/RA • Closed session • 2. Pension Fund • - Further discussion of the Report of Working Group 2 • Open session • 7. Adjustment of Pensions for 2010

8. Why this emergency meeting? Public meeting / 14 Dec.2009 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!

9. Pension Fund Governing Board President nominated by CERN Council Employer reps. Vice-President nominated by CERN Council Public meeting / 14 Dec.2009 • Council WG (Levaux) – Pension Fund new Governance - June 07 • Composition of PFGB (members) • Two nominated by CERN Council • One nominated by ESO Council • One nominated by DG of CERN • Two nominated by CERN Staff Association • One nominated by ESO Staff Association Employee reps. • One nominated by CERN/ESO pensioners • Two professional experts nominated by CERN Council

10. Our position: problem of principle Public meeting / 14 Dec.2009 • We understand entirely that the Member State representatives need to meet on their own. • In the area of pensions, there are two stakeholders: • The “employer” college • The “employee” college • The experts of the PFGB have a duty to be impartial • It is unacceptable that the party which appoints the experts receives them in the absence of the other party.

11. Why this emergency meeting? Public meeting / 14 Dec.2009 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!

12. Situation of the Fund Finance Committee – 11 Nov. 2009 Public meeting / 14 Dec.2009

13. Situation of the Fund Finance Committee – 11 Nov. 2009 Return on assets in 2009 : ~ +10% Public meeting / 14 Dec.2009

14. Situation of the Fund Finance Committee – 11 Nov. 2009 +114 MCHF/year +0 MCHF/year Public meeting / 14 Dec.2009

15. Situation of the Fund Finance Committee – 11 Nov. 2009 Public meeting / 14 Dec.2009

16. Why this emergency meeting? Public meeting / 14 Dec.2009 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!

17. Situation of the Fund: our views Public meeting / 14 Dec.2009 • Deficit: • Can be mostly explained by past decisions by Council • Its existence has been known by Council for a long time • In the past, Council has shown no real intention to make up this deficit • It has become colossal: 2100 MCHF • The traditional levers are ineffective • Benefits: limitation due to acquired rights → future staff • Contributions: very little room for manoeuvre → rate > 30% of salary • Full Funding • Decided by Council in 2007: desire to keep the Fund balanced • White Paper from PFGB in 2009: • Responsibility of CERN Council → additional “employer” payments requested • Current dangers: • Burying one’s head in the sand again?...............................   • Colossaldeficit → attack on our benefits?...........................   

18. Legal framework Public meeting / 14 Dec.2009 • 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).

19. Information to CERN Staff Staff meetings – Sept/Oct. 2009 Public meeting / 14 Dec.2009

20. Information to CERN Staff Staff meetings – Sept/Oct. 2009 Public meeting / 14 Dec.2009

21. Information to CERN Staff Staff meetings – Sept/Oct. 2009 Public meeting / 14 Dec.2009

22. Why this emergency meeting? Public meeting / 14 Dec.2009 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!

23. Your priority issues - Staff Association survey/Oct. 2008 1st 114 113 106 100 85 Public meeting / 14 Dec.2009

24. Our position: problem of principle Public meeting / 14 Dec.2009 • We understand entirely that the Member State representatives need to meet on their own. • In the area of pensions, there are two stakeholders: • The “employer” college • The “employee” college • The experts of the PFGB have a duty to be impartial • It is unacceptable that the party which appoints the experts receives them in the absence of the other party.

25. Why act now: the Stakes Public meeting / 14 Dec.2009 • 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?

26. Council WG – OSNES: Dec. 2006 Public meeting / 14 Dec.2009

27. Council WG – OSNES: Dec. 2006 Public meeting / 14 Dec.2009

28. Appeal to the staff and pensioners Let us join forces! Thursday 17 December Public Meeting - 14 December 2009