143^rd and 144^th meetings of the Governing Board of the Pension Fund

During the meeting, the Board also approved a document setting out its position on the CERN debt to the Pension Fund, which would be submitted to the Finance Committee and Council in June. It underlined that the reimbursement of the debt would be advantageous for the Fund as well as for the Laboratory and that it would reduce the Fund's dependence on the employer, in line with international accounting practices.

The second of the two meetings was essentially devoted to examining the actuary's report on the Fund's position with respect to its actuarial commitments as at 1st January 2006. The report, the first of its kind, follows the Board's decision to commission actuarial studies to check the Fund's position in open fund terms between three-yearly actuarial reviews. Based on the Fund's position as at the end of 2005 and taking account of the Council's decisions in December 2005, it reveals a net improvement in the Fund's long-term (30-year) financial balance. However, the actuary states in the conclusions to his report that, while as at 31.12.2005/1.1. 2006, the Fund has a positive balance, the absence of a safety margin in the funding ratio means that it is not protected should there be a sharp fall in the financial markets. The Governing Board noted the actuary's report with interest and was of the opinion that it constituted a useful preview of the three-yearly actuarial review, which will be based on the Fund's position as at 31.12. 2006/1.1.2007. It also expressed the view that the position of the Fund was still beset by a structural problem and had not fundamentally changed.

At the same meeting, the Chairman of the Investment Committee reported on the latter's meeting on 7 June, at which it had, among other things, examined the performance of the bond managers and decided to put the Neuilly office block up for sale.

Finally, the Governing Board noted, with regret, the deaths of the following members of the Fund: Mrs G. Jourdan, Mrs A. Menazzi, Mrs A. Perret, Mr G. Banuelos, Mr W. Bruguier, Mr A. Muller (ESO) and Mr G. Pelvat.