Endorses the observations and recommendations contained in the report of the Advisory Committee on Administrative and Budgetary Questions;3
I.Actuarial matters
Recalling section I of its resolution 55/224,
Having considered the results of the valuation of the United Nations Joint Staff Pension Fund as at 31 December 2001 and the observations thereon by the Consulting Actuary of the Fund, the Committee of Actuaries and the United Nations Joint Staff Pension Board,
1
Takes note of the actuarial situation of the United Nations Joint Staff Pension Fund, which went from an actuarial surplus of 0.36 per cent of pensionable remuneration as at 31 December 1997 to an actuarial surplus of 4.25 per cent of pensionable remuneration as at 31 December 1999, and to an actuarial surplus of 2.92 per cent of pensionable remuneration as at 31 December 2001, and, in particular, of the opinions provided by the Consulting Actuary and the Committee of Actuaries, as reproduced in annexes VII and VIII, respectively, to the report of the United Nations Joint Staff Pension Board;1
2
Also takes note of the general support of the Board for the report of the Working Group established by the Board to undertake a fundamental review of the benefit provisions of the Fund, taking into account developments in staffing and remuneration policies in the member organizations and in pension arrangements at the national and international levels, and notes in particular that the Board approved the recommendations of the Working Group, set out in paragraphs 157 and 158 of the report of the Board,1 as further promoting the human resources framework adopted by the International Civil Service Commission and the General Assembly and serving to enhance the mobility of staff and the portability of pensions;
3
Further takes note of the recommendation of the Board that the current contribution rate should be maintained but kept under review;
4
Approves, in principle, the changes in the benefit provisions of the Regulations of the Fund, as set out in annex XIV to the report of the Board,1 that would eliminate the limitation on the right to restoration for existing and future participants, with implementation to begin at such time as the actuarial valuation of the Fund shows a clear upward pattern of surpluses;
5
Notes that the Board agreed to make no changes in the methodology currently used in the determination of final average remuneration, but agreed to study all possible means of redressing the existing aberrations in the levels of initial pensions and in income replacement ratios over time;
6
Concurs with the transfer agreements with the European Organization for the Safety of Air Navigation and the Organization for Security and Cooperation in Europe, as approved by the Board under article 13 of the Regulations of the Fund, with a view to securing continuity of pension rights between the Fund and the two organizations, as set out in annex X to the report of the Board;1
II.Pension adjustment system
Recalling section II of its resolution 55/224,
Having considered the reviews carried out by the Working Group of the United Nations Joint Staff Pension Board and subsequently by the Board, as set out in its report,1 of various aspects of the pension adjustment system,
1
Recalls the aim of enhancing the mobility of staff and the portability of pensions;
2
Approves, in principle, the changes in the pension adjustment system, as set out in annex XIII to the report of the Board,1 with implementation to begin when the actuarial valuation of the United Nations Joint Staff Pension Fund shows a clear upward pattern of surpluses, namely:
a
To apply cost-of-living adjustments to deferred retirement benefits as from age 50;
b
To apply cost-of-living differential factors to deferred retirement benefits as from the date of separation;
3
Notes that the Board approved the recommendation of the Working Group to eliminate the 1.5 percentage point reduction in the first consumer price index adjustment due to existing and future beneficiaries, subject to an actuarial surplus being revealed in the actuarial valuation to be performed as at 31 December 2003;
4
Takes note of the decision of the Board to continue to study the problems associated with the adjustment of pensions after award;
5
Also takes note of the results of the monitoring of the costs/savings of recent modifications of the two-track feature of the pension adjustment system and of the intention of the Board to continue to monitor those costs/savings every two years, on the occasion of the actuarial valuations of the Fund;
III.Financial statements of the United Nations Joint Staff Pension Fund and report of the Board of Auditors
Having considered the financial statements of the United Nations Joint Staff Pension Fund for the biennium ended 31 December 2001, the audit opinion and report of the Board of Auditors thereon, the information provided on the internal audits of the Fund and the observations of the United Nations Joint Staff Pension Board,1
Notes that, in its report on the accounts of the United Nations Joint Staff Pension Fund for the biennium ended 31 December 2001,5 the Board of Auditors indicated that the financial statements were in compliance with accepted standard accounting principles and that there were no major findings of problems concerning procedures and controls;
5Official Records of the General Assembly, Fifty-seventh Session, Supplement No. 9 (A/57/9), annex XII.
IV.Administrative arrangements and longer-term objectives of the United Nations Joint Staff Pension Fund
Recalling section VII of its resolution 51/217, section V of its resolutions 52/222, 53/210 and 54/251, section IV of its resolution 55/224 and section V of its resolution 56/255 concerning the administrative arrangements and expenses of the United Nations Joint Staff Pension Fund,
Having considered chapter VII of the report of the United Nations Joint Staff Pension Board1 concerning the administrative arrangements of the Fund,
1
Takes note of the information set out in paragraphs 96 and 97 of the report of the United Nations Joint Staff Pension Board1 on the revised budget estimates for the biennium 2002–2003;
2
Approves the increase in resources under administrative costs for the biennium 2002–2003, from 29,943,800 to 30,006,300 United States dollars, for the recalculation of benefits due to a judgement of the International Labour Organization Tribunal and a retroactive change in local salary scales;
3
Takes note of the information set out in paragraphs 100 to 104 of the report of the Board1 on the whole-office review of the staffing structure and levels of both the Fund secretariat and the Investment Management Service, and also takes note of the support and endorsement in principle of the Board for the Secretary/Chief Executive Officer’s efforts and plans for modernization in order to deal with the fast-growing activities of the Fund;
4
Also takes note of the support of the Board for the efforts of the Secretary/Chief Executive Officer to continue to search for permanent premises for the Fund in New York;
V.Survivors’ benefits
Recalling section V of its resolution 55/224,
Takes note of the further review undertaken by the United Nations Joint Staff Pension Board of issues related to the pension entitlements of survivors, and requests the Board to examine the administrative and financial aspects of this matter, as a whole, and report to the General Assembly thereon at its fifty-ninth session;
VI.Activities relating to former participants from the former Union of Soviet Socialist Republics, the Ukrainian Soviet Socialist Republic and the Byelorussian Soviet Socialist Republic
Recalling section VI of its resolution 55/224,
1
Notes the information provided by the United Nations Joint Staff Pension Board in paragraphs 125 to 140 of its report;1
2
Decides that this issue does not require further consideration by the General Assembly;
VII.Size and composition of the United Nations Joint Staff Pension Board and the Standing Committee
1
Takes note of the information set out in paragraphs 205 to 220 of the report of the United Nations Joint Staff Pension Board1 on the review of the size and composition of the Board and its Standing Committee;
2
Requeststhe Board to study the representation of the Fund’s member organizations on the Board, so as to clarify the criteria adopted for that purpose, and to submit further proposals to the General Assembly at its fifty-ninth session, with a view to making such representation more equitable in order to reflect the actual distribution of active participants in the Fund, present and future trends in Fund participation, the changing nature of the Fund’s member organizations and improved participation by members and alternate members in the Committee and Board meetings;
VIII.Other matters
1
Takes note of the observations of the United Nations Joint Staff Pension Board, as set out in paragraphs 194 and 195 of its report,1 on the review and conclusions reached by the International Civil Service Commission on the changes in average tax rates at the seven headquarters duty stations, which formed the basis for the development of the current common scale of staff assessment for pensionable remuneration;
2
Approves, with effect from 1 April 2003, amendments to articles 28 (g), 30 (c) and 34 (f), of the Regulations of the Fund, as set out in the annex to the present resolution, to increase the ceilings applicable in the commutation of the minimum benefit;
3
Also approves, with effect from 1 April 2003, the addition of a new paragraph to article 21 of the Regulations of the Fund, as set out in the annex to the present resolution, stating that a participant is deemed to have separated when he or she is on leave without pay for an extended period of time without concurrent contributions having been paid to the Fund;
4
Notes that the Board considered the possible application by the International Criminal Court to become a member organization of the Fund and that a formal application would be submitted to the Standing Committee in 2003, with possible membership to take effect on 1 January 2004;
5
Also notes that the Board considered the detailed report of the medical consultant, covering the period from 1 January 2000 to 31 December 2001;
6
Takes note of the other matters dealt with in the report of the Board;
7
Decides to revert to the issue of possible improvements in pension benefits at the fifty-ninth session of the General Assembly;
IX.Investments of the United Nations Joint Staff Pension Fund
1
Takes note of the report of the Secretary-General on the investments of the United Nations Joint Staff Pension Fund2 as well as the observations of the United Nations Joint Staff Pension Board, as set out in paragraphs 81 to 83 of its report;1
2
Stresses the importance of ensuring that the fiduciary responsibility of the Secretary-General, under the Regulations of the Fund, to take decisions on the investments of the assets of the Fund would under no circumstances be compromised;
3
Notes the concern expressed by the Board over the reduction in the market value of the investments of the Fund and the continuing efforts by the management of the investments to deal with market turbulence;
4
Takes note of the intention of the Board of Auditors and the Pension Board:
a
To follow up on the audit recommendations;
b
To review the procedures and operating methods of the Investment Management Service;
c
To review terms of reference for an independent external performance review of the investments of the Fund;
X.Diversification of investments of the United Nations Joint Staff Pension Fund
Recalling its resolutions 36/119 A to C of 10 December 1981,
1
Recognizes that the Fund’s policy of broad diversification of its investments by currency, types of asset classes and geographical areas continues to be the most reliable method of reducing risk and improving returns over long periods of time;
2
Reaffirms paragraph 3 of section VIII of its resolution 55/224;
3
Also reaffirms the policy of diversification of the investments of the Fund across geographical areas, wherever this serves the interests of the participants and beneficiaries of the Fund, in accordance with the four criteria of safety, profitability, liquidity and convertibility;
4
Requeststhe Secretary-General to continue to report on this matter to the General Assembly at its fifty-ninth session.
Amendments to the Regulations of the United Nations Joint Staff Pension Fund
Participation
Add the following new paragraph (c):
“(c) Notwithstanding the provisions of (b) above, a participant is deemed to have separated when he or she has completed (i) a consecutive period of three years on leave without pay without concurrent contributions having been paid in accordance with article 25 (b), or (ii) four years under the conditions described in (i) above within a total period of five years. To re-enter the Fund, such former participant would have to satisfy the requirements for participation set out in (a) above.”
Retirement benefit
In paragraph (g), subparagraph (iii), replace the number “300” with the number “1,000”.
Deferred retirement benefit
In paragraph (c), replace the number “300” with the number “1,000”.
Widow’s benefit
In paragraph (f), replace the number “200” with the number “600”.
