United Nations Documents
DINF Web Posted on: December 19, 1997
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A/RES/44/199
84th plenary meeting
21 December 1989 United Nations pension system
The General Assembly,
Recalling its resolution 43/227 of 21 December 1988,
Having considered the report of the United Nations Joint Staff Pension Board for 1989 to the General Assembly and to the member organizations of the United Nations Joint Staff Pension Fund, chapter III of volume I of the report of the International Civil Service Commission, the report of the Secretary-General on the investments of the Fund and the related report of the Advisory Committee on Administrative and Budgetary Questions,
I
MEASURES TO RESTORE THE ACTUARIAL BALANCE OF THE UNITED NATIONS
JOINT STAFF PENSION FUND
Recalling section I, paragraph 2, of its resolution 42/222 of
21 December 1987 and section I, paragraph 2, of its resolution 43/227, in which the United Nations Joint Staff Pension Board was requested to complete the study of all possible measures to restore the actuarial balance of the United Nations Joint Staff Pension Fund over the long term for presentation to the General Assembly at its forty-fourth session, together with the results of the twentieth actuarial valuation of the Fund as at 31 December 1988,
Recalling also its resolutions 37/131 of 17 December 1982, 38/233 of
20 December 1983 and 39/246 of 18 December 1984, in which it indicated that a co-operative effort by member organizations, participants and beneficiaries is required if the actuarial imbalance is to be reduced or eliminated, thereby securing an adequate level of benefits under the Fund,
Noting the continuing actuarial imbalance of the Fund as revealed by the valuation as at 31 December 1988,
Taking note of the proposals made by the Board to restore the actuarial balance of the Fund over the long term,
Approves, without retroactive effect, the following measures, including the necessary amendments to articles 1, 25 and 29 of the Regulations of the United Nations Joint Staff Pension Fund, and changes in the pension adjustment system, as set out in annexes I and II to the present resolution:
(a) For participants who enter or re-enter the Fund on or after
1 January 1990, the normal retirement age shall be 62;
(b) For participants who enter or re-enter the Fund on or after
1 January 1990, and who take early retirement before reaching age 57, the reduction factors applicable for ages 55 and 56 shall be 6 per cent for each year;
(c) For participants who separate from service on or after
31 December 1989 and who elect a deferred retirement benefit, adjustments of the benefit, in accordance with the pension adjustment system, shall commence only when the separated participant reaches age 55;
(d) The rate of contribution shall be increased, with effect from
1 January 1990, from 22.5 to 23.7 per cent of pensionable remuneration, of which the employing member organization shall pay 15.8 per cent and the participant 7.9 per cent;
II
PENSIONABLE REMUNERATION OF STAFF IN THE PROFESSIONAL
AND HIGHER CATEGORIES
Recalling its request in section I, paragraph 6, of its resolution 41/208 of 11 December 1986 that the International Civil Service Commission undertake, in full co-operation with the United Nations Joint Staff Pension Board, a further comprehensive review of the methodology for the determination of the scale of pensionable remuneration of staff in the Professional and higher categories, for monitoring the level of the scale and for its adjustment in between comprehensive reviews and submit its recommendations thereon to the General Assembly at its forty-fifth session,
Recalling also that in section I, paragraph 2, of its resolution 41/208 the General Assembly approved the procedure for adjusting the scale of pensionable remuneration in between comprehensive reviews,
1. Takes note of the arrangements agreed upon by the International Civil Service Commission as set out in paragraphs 50 and 51 of volume I of its report and by the United Nations Joint Staff Pension Board as set out in paragraphs 82 and 83 of its report, to ensure full co-operation in the conduct of the comprehensive review;
2. Requests the Commission, in undertaking, in full co-operation with the Board, the comprehensive review of the pensionable remuneration of staff in the Professional and higher categories, to take into account:
(a) The relevant recommendations on the remuneration structure;
(b) The considerations set out in paragraphs 34 to 41 of volume I of the report of the Commission and paragraphs 84 to 95 of the report of the Board in studying the desirability of establishing a margin range between the pensionable remuneration of staff in the United Nations common system and staff in comparable grades in the comparator civil service; and to submit its report thereon to the General Assembly at its forty-fifth session;
3. Approves, pending the completion of the comprehensive review, the modification of the procedure for adjusting pensionable remuneration as recommended by the Commission in paragraph 42 of volume I of its report;
4. Amends accordingly, with effect from 1 January 1990, article 54 of the Regulations of the United Nations Joint Staff Pension Fund as set out in annex I to the present resolution;
III
OTHER AMENDMENTS TO THE REGULATIONS OF THE UNITED NATIONS
JOINT STAFF PENSION FUND
Approves, with effect from 1 January 1990, an amendment to article 36 of the Regulations of the United Nations Joint Staff Pension Fund, as set out in annex I to the present resolution, to provide for commencement of the payment of a disabled child's benefit at the same time as an early retirement benefit;
IV
PROPOSAL OF THE INTERNATIONAL TELECOMMUNICATION UNION TO ESTABLISH
A PENSION PURCHASING POWER PROTECTION FUND
Taking note of the information provided in paragraphs 106 to 116 of the report of the United Nations Joint Staff Pension Board on the proposal of the International Telecommunication Union to establish a Pension Purchasing Power Protection Fund for its staff in the Professional and higher categories,
Reaffirming the strong concern expressed by the General Assembly in section IV of its resolution 38/233 about the need to maintain the unity, cohesion and integrity of the United Nations joint staff pension system and to avoid any action which may have an adverse effect on the said system,
Endorses the conclusions of the United Nations Joint Staff Pension Board as set out in paragraphs 115 and 116 of its report, that the proposal of the International Telecommunication Union should be studied, within the context of the comprehensive review of pensionable remuneration, as one possible long-term approach to the adjustment of pensions in local currency terms and that the International Telecommunication Union should not proceed with the implementation of its proposal as that would weaken the United Nations common system;
V
APPLICATION FOR MEMBERSHIP OF THE WORLD TOURISM ORGANIZATION
Notes the suspension of the application of the World Tourism Organization for membership in the United Nations Joint Staff Pension Fund;
VI
EMERGENCY FUND
Authorizes the United Nations Joint Staff Pension Fund to supplement the voluntary contributions to the Emergency Fund, for the biennium 1990-1991, by an amount not exceeding 200,000 United States dollars;
VII
ADMINISTRATIVE EXPENSES
Approves expenses, chargeable directly to the United Nations Joint Staff Pension Fund, totalling 30,573,400 United States dollars (net) for the biennium 1990-1991, and a reduction in expenses of 295,000 dollars (net) for the biennium 1988-1989, for the administration of the Fund;
VIII
OTHER QUESTIONS
Takes note of the other questions considered in the report of the United Nations Joint Staff Pension Board;
IX
INVESTMENTS OF THE UNITED NATIONS JOINT STAFF PENSION FUND
Takes note with appreciation of the report of the Secretary-General on the investments of the United Nations Joint Staff Pension Fund.
ANNEX I
Amendments to the Regulations of the United Nations
Joint Staff Pension Fund
Article 1
Definitions
1. Add a new paragraph (n) to read as follows:
"(n) 'Normal retirement age' shall mean age 60, except that it shall mean age 62 for a participant whose participation commences or recommences on or after 1 January 1990."
2. Reletter existing paragraphs (n) to (v) as (o) to (w).
Article 25
Contributions
Replace paragraph (a) by the following text:
"(a) Contributions by the participant and by the employing member organization shall be payable to the Fund concurrently with the accrual of contributory service under article 22 (a) at the percentage rates of pensionable remuneration specified below:
A B C
Employing
For periods of Participants member organizations
contributory service (percentage) (percentage)
Before 1984 ................ 7.00 14.00
As from 1 January 1984
to 30 June 1988 ............ 7.25 14.50
As from 1 July 1988
to 30 June 1989 ............ 7.40 14.80
As from 1 July 1989
to 31 December 1989 ........ 7.50 15.00
As from 1 January 1990 ..... 7.90 15.80"
Article 29
Early retirement benefit
Replace paragraphs (a) and (b) by the following text:
"(a) An early retirement benefit shall be payable to a participant whose age on separation is at least 55 but less than the normal retirement age and whose contributory service was five years or longer.
"(b) The benefit shall be payable at the standard annual rate for a retirement benefit, reduced for each year or part thereof by which the age of the participant on separation was less than the normal retirement age, at the rate of 6 per cent a year, except that:
"(i) If the contributory service of the participant was 25 years or longer but less than 30 years, 2 per cent a year in respect of the period of contributory service performed before 1 January 1985, and 3 per cent a year in respect of the period of such service performed as from 1 January 1985; or "(ii) If the contributory service of the participant was 30 years or longer, 1 per cent a year, provided, however, that the rate in (i) or (ii) above shall apply to no more than five years."
Article 36
Child's benefit
Replace paragraph (c) by the following text:
"(c) A child's benefit shall, notwithstanding (a) above, not become payable if the participant has chosen an early retirement benefit until he dies or reaches the normal retirement age, except to a child under the age of twenty-one, found by the Board to be disabled."
Article 54
Pensionable remuneration
Replace paragraph (b) by the following text:
"(b) In the case of participants in the Professional and higher categories, the scale of pensionable remuneration effective 1 May 1989, set out in the appendix hereto, shall be adjusted on the same date as the net remuneration amounts of officials in the Professional and higher categories in New York are adjusted. Such adjustment shall be by a uniform percentage equal to the weighted average percentage variation in the net remuneration amounts, as determined by the International Civil Service Commission, except that:
"(i) The amount of the first adjustment due after 1 January 1990
shall be reduced by 2.8 percentage points;
"(ii) The scale of pensionable remuneration determined by the International Civil Service Commission as corresponding to the revised salary structure entering into effect on 1 July 1990 shall become effective on the same date."
APPENDIX
Scale of pensionable remuneration for Professional and higher categories
(In United States dollars)
(Effective 1 May 1989)
S T E P S
Level I II III IV V VI VII VIII IX X XI XII XIII
Under-Secretary-General
USG ......................... 122 580
Assistant-Secretary-General
ASG ......................... 113 342
Director
D-2 ......................... 94 506 96 927 99 242 101 662
Principal Officer
D-1 ......................... 82 499 84 581 86 653 88 735 90 817 92 889 94 855
Senior Officer
P-5 ......................... 74 286 76 030 77 637 79 264 80 987 82 499 84 222 85 839 87 583 89 190
First Officer
P-4 ......................... 60 196 61 930 63 663 65 270 67 130 68 747 70 364 71 865 73 588 75 449 77 182 78 905
Second Officer
P-3 ......................... 49 214 50 947 52 575 54076 55 683 57 300 59 033 60 661 61 930 63 547 65 048 66 432 67 933
Associate Officer
P-2 ......................... 39 859 41 244 42 523 43 897 45 292 46 561 47 946 49 214 50 715 52 110 53 495
Assistant Officer
P-1 ......................... 31 308 32 471 33 507 34 553 35 705 36 741 38 010 39 289 40 557 41 709
ANNEX II
Changes in the pension adjustment system a/
J. DEFERRED RETIREMENT BENEFIT
Replace paragraph 27 by the following text:
"27. (a) For participants whose date of separation was before 31 December 1989, no adjustment will be applied to deferred retirement benefits prior to the beneficiary's reaching age 50. Commencing at age 50 or the date of separation, if later, the dollar base pension under
paragraph 5 (a) above is adjusted by the United States CPI in accordance with section H above without retroactive effect. The two-track system will become operative on the date of commencement of the payment of the periodic benefit. At that time a local currency base amount will be established by applying to the adjusted dollar amount the average exchange rate over thirty-six consecutive months up to and including the month of first payment.
"(b) For participants separating on or after 31 December 1989, no adjustment shall be applied to deferred retirement benefits prior to the beneficiary's reaching age 55. Commencing at age 55 or the date of separation, if later, the adjustment procedures set out in (a) above will be applied to the deferred retirement benefits of such beneficiaries."