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THIRTEENTH ITEM ON THE AGENDA

Pensions questions

Decisions of the United Nations General Assembly
on the report of the United Nations
Joint Staff Pension Board

Staff Pension Board

1. In accordance with United Nations General Assembly (UNGA) resolution 46/220 of 20 December 1991, the United Nations Joint Staff Pension Board (the Board) reports to the UNGA in even-numbered years. At its 273rd Session, the Governing Body was provided with details of the main issues examined by the Board during its 48th Session, which was held in Vienna in July 1998.⁽¹⁾  These issues concerned the implications of the modest actuarial surplus recently experienced by the United Nations Joint Staff Pension Fund (the Fund); the possibility of proposing limited additional benefits to Fund participants; concern over continuing increases in the administrative expenses of the Fund; and the transfer agreements between the Fund and the former USSR, Ukrainian SSR and Byelorussian SSR. This paper reports on the outcome of the consideration by the UNGA, during its 53rd Session, of the Board's report and recommendations for 1998.⁽²⁾  The relevant decisions were contained in resolution 53/210 of 18 December 1998.

Actuarial surplus of the Fund

2. The UNGA expressed satisfaction with the improvement in the actuarial situation of the Fund, from a deficit of 1.46 per cent of total pensionable remuneration as at 31 December 1995 to an actuarial surplus of 0.36 per cent as at 31 December 1997. The UNGA also agreed with the Advisory Committee on Administrative and Budgetary Questions that the present rate of contributions to the Fund (23.7 per cent of pensionable remuneration contributed by member organizations and Fund participants jointly) should not be changed until a pattern of surpluses had emerged from future valuations. The UNGA noted the decision taken by the Board to change the current 6.5 per cent to a 6 per cent interest rate on lump-sum commutations with respect to contributory service performed as from 1 January 2001, subject to a further favourable actuarial valuation.

Proposed limited additional benefits for Fund participants

3. The UNGA welcomed the initiatives taken by the Board in addressing various issues relating to the pension entitlements of spouses and former spouses. It encouraged the Board to continue its efforts in this field. In particular, the UNGA approved:

• The proposal to provide for a payment facility to assist in meeting obligations arising from court orders in respect of former spouses and child support. At this stage, this facility will be made available only at the request or with the consent of the participant. The UNGA requested the Board to monitor experience in implementing the facility, reporting to the UNGA as necessary. This provision will take effect from 1 April 1999.
• Provision for a divorced surviving spouse's benefit, subject to conditions regarding eligibility for, and the determination of the amount of, the benefit. In doing so, it noted that the Standing Committee of the Board has been requested to review, at its meeting in 1999, the situation of divorced spouses who would not be covered by the provision because of its prospective application. Again, this provision would be effective from 1 April 1999.
• The arrangement recommended for the optional purchase of surviving spouses' benefits in respect of marriages after separation, with effect from 1 April 1999.
• The elimination of the current provision requiring discontinuation of a surviving spouse's benefit upon remarriage, with effect from 1 April 1999. The UNGA also noted that during 1999 the Board's Standing Committee would consider whether this change might be extended to surviving spouses who had remarried prior to the effective date of the amendment.

4. The UNGA also agreed to the Board's proposals for extending (from 12 to 36 months) the time-limit, after separation from service, for determining that a period of participation in the Fund will have ceased (this provision would have immediate effect); and reducing the trigger point (from 3 to 2 per cent) for implementing a cost-of-living adjustment in pensions (this would take effect from 1 April 2001, subject to a favourable actuarial valuation as at 31 December 1999).

Administrative expenses of the Fund

5. The Governing Body will recall⁽³⁾  that the Board had expressed concern about continuing increases in the Fund's administrative expenses. The Fund's secretariat had been asked to explore various possibilities to stabilize and/or reduce these expenses, on a short- and longer-term basis, including in relation to the current cost-sharing arrangements between the Fund and the United Nations and with other member organizations. As proposed by the Board, the UNGA approved revised cost-sharing arrangements between the United Nations and the Fund. It also noted the Board's intention to continue to consider other possible longer term arrangements for the allocation of the costs of the Fund's operations, as between those to be charged against the assets of the Fund and those to be shared by the member organizations of the Fund.

Transfer agreements between the Fund and the former USSR,
Ukrainian SSR and Byelorussian SSR

6. During its consideration of this item, the UNGA was provided with a report by the representative of the Russian Federation, who acknowledged that problems had arisen between his Government and the Fund in the implementation of the agreement, but that all of the outstanding issues would be pursued. The UNGA encouraged all parties to continue to seek to resolve the issues concerned.

Other matters

7. The UNGA considered a report by the Board from its forty-ninth (special) session held in Geneva during November 1998. This session considered the decision taken on 16 October 1998 to authorize the Director-General of the World Trade Organization (WTO) to inform the Fund that the Interim Commission for the International Trade Organization/General Agreement on Tariffs and Trade (ICITO/GATT) wished to apply to terminate its membership in the Fund on 31 December 1998, subject to the conclusion of satisfactory transfer arrangements with the Fund. The UNGA decided to agree to this request provided that WTO provided unconditional written notification to the Secretary of the Board of termination of its membership by no later than 15 January 1999. The WTO was also expected to provide a written undertaking that the Fund would not be held liable from any and all claims against the Fund which might arise from ICITO/GATT participants, retirees or beneficiaries.⁽⁴⁾ 

Geneva, 3 February 1999.

1. GB.273/PFA/12/2.

2. United Nations General Assembly, Official Records, fifty-third session, Supplement No. 9 (A/53/9).

3. GB.273/PFA/12/2.

4. The WTO subsequently provided the required notification/undertaking, has officially withdrawn from the Fund and has now established its own Pension Plan.