ANNEX VSupplementary provisions
ANNEX V SEVERANCE GRANT AND PENSION CHAPTER 1 Severance grant Article 1 1. A staff member whose service terminates otherwise than by reason of death or invalidity shall be entitled on leaving the service: (a) where he has completed less than one year's service, to payment of a severance grant equal to three times the amounts withheld from his basic salary in respect of his pension contributions, after deduction of any amounts paid under Articles 91 and 132; (b) in other cases, he shall be entitled to: — to have the actuarial equivalent of his retirement pension rights in the Agency, updated to the actual date of transfer, transferred to the pension fund of an administration or organisation or to the pension fund under which he acquires retirement pension rights by virtue of the activity pursued in an employed or self-employed capacity, or — to the payment of the actuarial equivalent of such benefits to a private insurance company or pension fund of their choice, on condition such company or fund guarantees that: (i) the capital will not be repaid; (ii) a monthly income will be paid from age 60 at the earliest, and age 66 at the latest; (iii) provisions are included for reversion or survivors' pensions; (iv) transfer to another insurance company or other fund will be authorised only if such fund fulfils the conditions laid down in points (i), (ii) and (iii). 2. By way of derogation from point (b) of paragraph 1, a staff member who, since taking up his duties, has, in order to establish or maintain pension rights, paid into a national pension scheme, a private insurance scheme or a pension fund of his choice which satisfies the requirements set out in paragraph 1, and whose service terminates for reasons other than death or invalidity, shall be entitled, on leaving the service, to a severance grant equal to the actuarial value of his pension rights acquired during service in the Agency. In such cases the payments made in order to establish or maintain his pension rights under the national pension scheme in accordance with Article 91 or 132 shall be deducted from the severance grant. 3. Where a staff member's service has been terminated by removal from his post, the severance grant to be paid or, as the case may be, the actuarial equivalent to be transferred shall be determined by reference to the decision taken in accordance with Article 147. CHAPTER 2 Invalidity allowance Article 2 1. Subject to the provisions of Article 76, a staff member aged less than 65 years who at any time during the period in which he is acquiring pension rights is recognised by the Invalidity Committee to be suffering from total permanent invalidity preventing him from performing the duties corresponding to a post in his career bracket, and who is obliged on these grounds to end his service with the Agency shall be entitled, for so long as such incapacity persists, to invalidity allowance as provided for in Article 77. 2. Persons in receipt of an invalidity allowance may not engage in gainful employment without the prior authorisation of the AACC. Any income from such gainful employment which, in combination with the invalidity allowance, exceeds the final total remuneration received while in active service as determined on the basis of the salary scale in force on the first day of the month in which the allowance is to be paid shall be deducted from the invalidity allowance. The recipient of the allowance shall be required to provide on request any written proof which may be requested and to notify the Agency of any factor that may affect entitlement to the allowance. Article 3 While a former staff member drawing invalidity allowance is aged less than the pensionable age, the Agency may have him medically examined periodically to ascertain that he still satisfies the requirements for payment of the allowance. CHAPTER 3 Survivor's pension Article 4 Where a staff member dies being on active employment, leave on personal grounds, leave for military service, parental leave or family leave, the surviving spouse shall be entitled, provided that the couple were married for at least one year at the time of his death and subject to the provisions of Article 76 of these Staff Regulations and Article 11 of this Annex, to the survivor's pension equal to 60 % of the retirement pension rights acquired for the staff member at the time of death. The duration of the marriage shall not be taken into account if there are one or more children of the marriage or of a previous marriage of the staff member, provided that the surviving spouse maintains or has maintained those children, or if the staff member's death resulted either from physical disability or sickness contracted in the performance of his duties or from accident. Article 5 Where a former staff member was in receipt of invalidity allowance the surviving spouse shall be entitled, subject to the provisions of Article 8, provided that the couple were married when the staff member became eligible for the allowance, to a survivor's pension equal to 60 % of the invalidity allowance which the spouse was receiving at the time of death. The minimum survivor's pension shall be 35 % of the final basic salary; the amount of the survivor's pension shall in no case, however, exceed the amount of the invalidity allowance which the spouse was receiving at the time of death. Article 6 For purpose of Articles 4 and 5, the duration of the marriage shall not be taken into account where the marriage, though contracted after termination of the staff member's service, has lasted at least five years. Article 7 1. The orphan's pension provided for in the first, second and third subparagraphs of Article 82 of these Staff Regulations shall for the first orphan be equal to eight tenths of the survivor's pension to which the surviving spouse of a staff member or former staff member in receipt of an invalidity allowance would have been entitled, the reductions set out in Article 10 of this Annex, being disregarded. It shall not be less than the minimum subsistence figure, subject to the provisions of Article 8 of this Annex. 2. The pension shall be increased, for each dependent child after the first, by an amount equal to twice the dependent child allowance. Orphans shall be entitled to education allowance in accordance with Article 3 of Annex IV. 3. The total amount of pension and allowance calculated in this way shall be divided equally among the orphans entitled. Article 8 Where a staff member leaves a surviving spouse and also orphans of a previous marriage or other persons entitled under him, the total pension, calculated as if for a surviving spouse having all these persons dependent on him, shall be apportioned among the various persons concerned in proportion to the pensions which would have been payable to each category of them if treated separately. Where a staff member leaves orphans of different marriages, the total pension, calculated as though all the children were of the same marriage, shall be apportioned among the various persons concerned in proportion to the pensions which would have been payable to each category of them if treated separately. For the purposes of calculating this apportionment, children of a previous marriage of either spouse, who are recognised as dependants within the meaning of Article 2 of Annex IV shall be included in the category of children of the marriage to the staff member or former staff member in receipt of an invalidity allowance. In the case envisaged in the second paragraph of this Article, ascendants who are recognised as being dependants as provided for in Article 2 of Annex IV shall be treated in the same way as dependent children and, for the purpose of calculating the apportionment, included in the category of descendants. Article 9 The right to receive payment of survivor's pension shall have effect from the first day of the calendar month following that in which the staff member or former staff member in receipt of an invalidity allowance died. However, where the payment provided for in Article 60(8) is made on the death of the staff member or of the person entitled to a pension, such right shall take effect on the first day of the fourth month following that in which death occurred. The right to receive payment of survivor's pension shall cease at the end of the calendar month in which the recipient of the pensions dies or ceases to satisfy the requirements for payment of the pension. Similarly the right to an orphan's pension shall cease if the recipient ceases to be regarded as a dependent child within the meaning of Article 2 of Annex IV. Article 10 Where the difference in age between the deceased staff member or former staff member in receipt of an invalidity allowance and his surviving spouse, less the length of time they have been married, is more than 10 years, the survivor's pension, calculated in accordance with the preceding provisions, shall be subject to a reduction, per full year of difference, amounting to: — 1 %, for the years between 10 and 20, — 2 %, for the years 20 up to but not including 25, — 3 %, for the years 25 up to but not including 30, — 4 %, for the years 30 up to but not including 35, — 5 %, for the years from 35 upwards. Article 11 A surviving spouse's entitlement to survivor's pension shall cease on remarriage. He or she shall be entitled to immediate payment of a capital sum equal to twice the annual amount of his survivor's pension, provided that the second paragraph of Article 82 does not apply. Article 12 The divorced spouse of a staff member or a former staff member shall be entitled to a survivor's pension, as defined in this Chapter, provided that, on the death of the former spouse, he/she can justify entitlement on his/her own account to receive maintenance from him by virtue of a court order or as a result of an officially registered settlement in force between himself/herself and his/her former spouse. The survivor's pension may not, however, exceed the amount of maintenance paid at the time of death of the former spouse, the amount having been adjusted in accordance with the procedure laid down in Article 85. The divorced spouse's entitlement shall cease if he or she remarries before the former spouse dies. Article 11 of this Annex shall apply in the event of remarriage after the death of the former spouse. Article 13 Where the deceased staff member leaves more than one divorced spouse entitled to survivor's pension or one or more divorced spouses and a surviving spouse entitled to a survivor's pension, that pension shall be divided in proportion to the respective duration of the marriages. The provisions of the second and third paragraphs of Article 12 of this Annex shall apply. If any of the persons entitled to pension dies or renounces his or her share, that share shall accrue to the shares of the other persons, except where there are orphans' rights under the second paragraph of Article 82. Reductions in respect of difference in age, as provided for in Article 10 of this Annex, shall be applied separately to pensions divided in accordance with this Article. Article 14 Where under Article 19 of this Annex the divorced spouse ceases to be entitled to a pension, the total pension shall be payable to the surviving spouse, provided the second paragraph of Article 82 of these Staff Regulations does not apply. CHAPTER 4 Provisional pensions Article 15 The spouse or persons recognised as dependants of a staff member being on active employment, leave on personal grounds, leave for military service, parental leave or family leave whose whereabouts are unknown for more than one year provisionally receive the survivor's pension to which they would be entitled under this Annex. Article 16 The spouse or persons recognised as dependants of a former staff member in receipt of invalidity allowance whose whereabouts are unknown for more than one year may provisionally receive the survivor's pension to which they would be entitled under this Annex. Article 17 The provisions of Article 16 shall apply to persons recognised as a dependant of a person in receipt of or entitled to a survivor's pension whose whereabouts are unknown for more than one year. Article 18 Provisional pensions under Articles 15, 16 and 17 shall be converted into definitive pensions when the death of the staff member or former staff member has been duly confirmed or he has been legally declared missing, presumed dead. CHAPTER 5 Pension increases in respect of dependent children Article 19 The provisions of the second paragraph of Article 81 of these Staff Regulations shall apply to persons in receipt of a provisional pension. Articles 81 and 82 shall also apply to children born less than 300 days after the death of the staff member or former staff member in receipt of an invalidity allowance. Article 20 The award of a survivor's pension or of an invalidity allowance or of a provisional pension shall not entitle the pensioner to expatriation allowance. Article 21 Salaries and invalidity allowances shall in all cases be subject to deduction of the contribution of the pension scheme provided for in Articles 78 to 88. Article 22 Staff members on leave on personal grounds who are continuing to acquire further pension rights on the conditions laid down in Article 57(3) shall continue to pay the contribution referred to in Article 21 of this Annex on the basis of the salary carried by this step and grade. All benefits to which any such staff member or those entitled under him may be entitled under this pension scheme shall be calculated on the basis of such salary. Article 23 Contributions properly deducted shall not be refunded. Contributions wrongly deducted shall not confer the right to receive a pension; they shall be reimbursed without interest at the request of the staff member or of those entitled under him. CHAPTER 6 Calculation of pension Article 24 The Agency shall be responsible for calculating the amount of survivor's or provisional pension or invalidity allowance. A detailed statement of the calculation shall be communicated to the staff member or to those entitled under him, at the same time as the decision awarding the pension. An invalidity allowance shall not be paid concurrently with the salary payable from the general budget of the Agency. Similarly, it shall be incompatible with any remuneration derived from a post in one of the Union institutions or agencies. Article 25 The amount of pension may at any time be calculated afresh if there has been error or omission of any kind. Pensions shall be liable to modification or withdrawal if the award was contrary to the provisions of these Staff Regulations or of this Annex. Article 26 Where a staff member or former staff member in receipt of an invalidity allowance dies and those entitled under him do not apply for their pension or allowance within one year from the date of his death, they shall lose their entitlement, save where force majeure is duly established. Article 27 A former staff member or those entitled under him in favour of whom benefits arise under this pension scheme shall furnish such written proof as may be required and inform the Agency of any facts liable to affect their entitlement. Article 28 Where a staff member has been temporarily deprived, in whole or in part, of his pension rights under Article 147, he shall be entitled to claim reimbursement in proportion to the amount by which his pension has been reduced of the pension contributions he has paid. CHAPTER 7 Payments of benefits Article 29 Benefits under this pension scheme shall be paid monthly in arrears. These benefits shall be provided by the Agency. For pensioners residing in the European Union, benefits shall be paid in euro into a bank in the Member State of residence. For pensioners residing outside the Union, pensions shall be paid, in euro into a bank in the country of residence. The pension may by way of exception be paid in euro into a bank in the country where the Agency has its headquarters, or in foreign currency in the country of residence of the pensioner, converted at the most up-to-date exchange rates used for the implementation of the budget of the Agency. This Article shall apply by analogy to the recipients of an invalidity allowance.