INTERNAL COMMISSION DIRECTIVE

At their 242^nd meeting, on 16 June 2005, the Heads of Administration approved Conclusion 239/05 (see Annex) which applies within the Commission from 1 July 2005.

Claude CHENE

Annex

Luxembourg, 20 June 2005

CONCLUSION 239/05

APPROVED BY THE HEADS OF ADMINISTRATION
AT THEIR 242^nd MEETING ON 16 JUNE 2005

1. The second paragraph of Article 77 of the Staff Regulations provides that the maximum retirement pension shall be 70% of the final basic salary carried by the last grade in which the official was classified for at least one year.
    
2. The fourth paragraph of Article 77 of the Staff Regulations provides that the amount of the retirement pension must not be less than 4% of the minimum subsistence figure per year of service.
    
3. In certain quite rare cases, application of the minimum amount set by the fourth paragraph of Article 77 could result in the 70% maximum amount set by the second paragraph being exceeded and, in certain extreme cases, application of the minimum amount could even exceed the basic salary of the person concerned in active service.
    
4. On reading these two provisions, and taking into account the precise wording of the second paragraph in expressly referring to a maximum amount of retirement pension, it appears that the legislator, by setting the retirement pension at 70% of the final basic salary, wished to establish an absolute limit which must not be exceeded.

CONCLUSION

The result of the overall calculation of the years to be taken into account when applying the fourth paragraph of Article 77 of the Staff Regulations shall not under any circumstances exceed the maximum amount set in the second paragraph of that same Article.

This conclusion shall apply from 1 July 2005.

By the Heads of Administration