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TENTH ITEM ON THE AGENDA

Pensions questions

Decisions of the United Nations General Assembly
on administrative expenses of
the United Nations Joint Staff Pension Fund

1. In accordance with the United Nations General Assembly resolution 46/220 of 20 December 1991, the United Nations Joint Staff Pension Board (the Board) reports to the United Nations General Assembly in even-numbered years. In odd-numbered years, the Standing Committee of the Board reports to the General Assembly on administrative expenses and other budgetary matters.

2. The Standing Committee met from 30 June to 2 July 1997, in New York, to consider budget proposals for the Fund for the biennium 1998-1999. The proposals that had been prepared by the Secretary of the Fund amounted to some US$52.4 million, of which US$17.9 million represented administrative expenses. This reflected an increase in recurrent administrative costs of 17.7 per cent as compared to the previous biennium. The increase was primarily due to a decision of the administration of the United Nations to charge the Fund for additional costs related to mainframe computer usage, auditing services and rental of office space, provided by the administration. The resulting savings for the United Nations would have had negative actuarial implications for the Fund. Members of the Standing Committee expressed strong concerns about the potential implications of changes in the long-standing administrative and cost-sharing relationships between the Fund and its member organizations, which had been established in 1954, in particular those involving the Fund and its host organization, the United Nations. Furthermore, this decision had been taken without the required consultations with the Board and the United Nations General Assembly. After extensive debate, during which no agreement could be reached on a provisional cost-sharing arrangement, the Standing Committee decided, with some reservations, to propose a budget of approximately US$50.9 million dollars for the 1998-1998 biennium, which included US$16.4 million dollars for administrative expenses.⁽¹⁾ 

3. On 21 December 1997, the United Nations General Assembly adopted resolution 55/222, which confirmed the position that had been expressed by several members of the Standing Committee, i.e. that both the Board and the General Assembly should have been consulted before the administration of the United Nations attempted to change the traditional cost-sharing arrangements with the Fund. Therefore, the General Assembly decided that on the present occasion US$2.3 million of administrative expenses should be a charge to the budget of the United Nations Secretariat and not to the budget of the Fund. The approved budget of the Fund for the 1998-99 biennium stood at US$50.1 million, which included US$15.7 million for administrative expenses.

4. At its next regular session in July 1998, the Board will undertake a comprehensive study of the administrative cost-sharing arrangements between the Fund and its member organizations, bearing in mind the respective areas of responsibility conferred by the Regulations of the Fund on the Secretary of the Board and on the Secretary-General of the United Nations (who has fiduciary responsibility for the investments of the Fund). Depending on the outcome of this study, which will be reported to the United Nations General Assembly in December 1998, the budget of the fund for the 1998-99 biennium may be modified at a later date.

Geneva, 19 February 1998.

1. United Nations General Assembly document A/52/278, dated 15 August 1997.