1. finance
2. personal finance
3. financial planning
4. retirement and pension

Geneva – February 2015
Overview




Understand what the Fund
is.
Know what to expect from
the Fund.
Overview of pension
benefits.
Get practical information
related to your participation.
Pension Fund Goal
To provide participants with
an “income replacement” at
age of retirement
To provide coverage in case
of a participant’s/retiree’s
death or disability
4
What’s
the
UNJSPF ????
ICSPRPP
UN
WHO
ICGEB
A
JOINT
Fund
ILO
WTO
(Madrid)
WIPO
ISA
WMO
ITLS
FAO
23 Member
Organizations
EPPO
UNESCO
STL
IAEA
IMO
UNIDO
WMO
ITU
IFAD
ICAO
IPU
ICC
A
“DEFINED
BENEFIT”
Pension Scheme
“US$ based”
Pension Scheme
=> All Benefits
initially calculated
in US$
8
Is the
UNJSPF
Solid ????
UNJSPF: Active Participants total growth
(2003-2013)
A decrease of 0.7% from 2012
11
UNJSPF: Beneficiaries Total Growth
(2003-2013)
A 3.4% increase from 2012.
12
UNJSPF: Short-term Funding Status
$2.169 Billion Contributions and $2.3 Billion Benefit Payments in 2013
During the year 2013, benefits were paid in 15 different currencies. The net assets
available for benefits increased by $6.7 Billion. The difference between
Contributions and Benefit Payments for 2013 is $131 Million (Source: PF Annual Report)13
UNJSPF: Market value of assets
 The value of the Fund’s assets increased from $45 billion on 1 January 2013 to an all time
high $51.6 billion on 31 December 2013, an increase of about 14.9%
(Source: PF Annual Report)
14
UNJSPF: Long Term Funding Status
The 2013 valuation revealed a deficit, amounting to -0.72 per cent of pensionable remuneration. The -0.72 per cent, expressed
another way, means that the theoretical contribution rate required to achieve balance as of 31 December 2013 was 24.42 per
cent of pensionable remuneration, compared to the actual contribution rate of 23.70 per cent. These results show a reverse of
the downward trend experienced by the Fund since 2001 which is a significant positive long-term development considering the
15
size and maturity of the Fund. (Source: PF Annual Report)
UNJSPF: Long Term Funding Status
The funding ratios are comparisons of the current assets of the Fund with the value of the accrued benefits
(liabilities) on the given valuation date and are calculated on a “plan termination basis.” With respect to its
liabilities on 31 December 2013, the Fund was found to be in a strongly funded position, as it had been
for the past ten valuations. The current funded ratio is 128 per cent, which was obtained by dividing the
actuarial value of assets (i.e. $46,205 million) by the actuarial value of the accrued benefits (i.e. $36,244
million). The ratio therefore indicates that there is a 28 per cent margin of assets over accrued liabilities. The
funded ratio is lower when the current system of pension adjustments is taken into account, whereby
benefits are adjusted for inflation. (Source: PF Annual Report)
16
Participation
into
the Fund
Article 21 sets the conditions for mandatory
participation into the Fund when a full-time
member of the staff of a member organization of the
Fund:
 Commences employment under an appointment
for 6 months or longer or accepts such an
appointment while in employment
or
 Completes, in the same or more than one
member organization, 6 months of service
without an interruption of more than 30 days
whichever is earlier, provided that participation is
not expressly excluded by the terms of staff
member’s appointment.
Age
(NRA vs MAS)
Normal Retirement Age (NRA):
Age when a SM can draw a pension
without reduction factors (penalties).
Age when a staff member is entitled to
a Normal Retirement Benefit.
This age is based on the Regulations
and Rules of the Pension Fund
Normal Retirement Age for participants entering
the Fund before 01 January 1990 is Age 60,
between 01/01/1990 to 31/12/2013, it is Age 62
Early retirement age for these participant starts
at age 55
Normal Retirement Age for participants entering
the Fund on or after 01 January 2014 is Age 65
Early retirement age for these participant starts
at age 58
Normal Retirement Age for participants entering
the Fund on or after 01 January 2014 is Age 65
Early retirement age for these participants starts
at age 58
Early Reduction factors are:
6% per year for CS less than 25 years
4% per year for CS of 25 years or more
(applicable for max 5 years)
Deferred Retirement benefits start to be adjusted
from age 55
Mandatory Age of Separation
(MAS):
Age until when a staff member is allowed to
work by his/her Employing Organization.
This age is based on the Regulations and
Rules of the UN Common System, but cannot
be before NRA.
If you started working for a Member Organization
before 01 January 2014, but started participating in
the Fund on or after 01 January 2014, make sure
your HR Office sets your Mandatory Age of
Separation at 65 to align it with your Normal
Retirement Age.
If you enter the Fund on or after 01 January 2014,
and are separated at any age between 58 and 65, it
will be an Early Retirement benefit for the Fund
with a reduction of 4% per year (max 5 years) for
those with 25 years CS or more and 6% per year for
those with less than 25 years of CS.
Staff Members who entered the Fund prior to 01
January 2014, and who re-enter the Fund on or
after 01 January 2014 within 36 months with no
benefits paid will retain their Normal
Retirement Age at 60 or 62.
Staff Members who entered the Fund prior to 01
January 2014, and who re-enter the Fund on or
after 01 January 2014 beyond 36 months or
after being paid a benefit will have a new
pension number with Normal Retirement Age at
65, even if they restore the prior service
Options to Increase
your Contributory
Service –
Know your rights
and be pro-active!
Validation
Restoration
Transfer
Agreements
SLWOP
Validation
• Option to make prior-period of
employment “pensionable”
• 1-year deadline to exercise it (Form
B/1)
Restoration
• Option to “merge” a prior period of
contributory service into another one
• 1-year deadline to exercise it (Form
C/1)
Transfer
Agreements
• Option to “carry-in/out” accrued
pension rights
• Different deadlines in Agreements
Article 23 sets the conditions for validating prior noncontributory service: Period(s) of employment with a
member Organization without participation due to length
of contract.
 All periods open for validation must be validated
 Request must be submitted by the participant within
1-year of entry/re-entry into the Fund by completing
the B/1 form (available on the website) and sending it
directly to the Pension Fund.
 The Fund will determine Eligibility to Validate upon
receipt of the Form.
Article 24 sets the conditions for restoring prior
contributory service: Period of Participation with Fund
where either a Withdrawal benefit was paid or a Deferred
Retirement benefit elected before April 2007 is not in
payment.
 Only the most recent period of contributory
service is open for restoration
 Request must be submitted within 1-year of reentry into the Fund by completing the C/1 form
(available on the website)
 The Fund will determine Eligibility to Restore upon
receipt of the Form.
SLWOP
• Possible to keep contributing to the
Fund during this period.
• Decision to do so must be taken
before SLWOP. SM must inform
their payroll of the decision
• Participant pays his/her share of
contributions and that of his/her
employing organization
(i.e. his/her monthly pension
contributions x 3)
• In case of withdrawal settlement
only participant’s share will be paid
back.
A Pension
Fund ?
What for ????
To provide participants with
an “income replacement” at
age of retirement
To provide coverage in case
of a participant’s/retiree’s
death or disability
What will YOU
get from your
7.9%
contributions ?
Benefits to Participants
 Normal Retirement Benefit (age 62/65)
 Early Retirement Benefit
(from age 55 to less than 62 or from age
58 to less than 65)
 Deferred Retirement Benefit
(under age 55 for 62, and under 58 for 65)
 Disability benefit
 Withdrawal Settlement
UNJSPF: Other Benefits
 Widow’s/Widower’s Benefit (arts. 34 & 35)
 Divorced Surviving Spouse’s Benefit (art. 35 bis)
 Spouse Married after Separation from service
(art. 35 ter)
 Child’s Benefit (art. 36)
 Secondary Dependant’s Benefit (art. 37)
 Residual Settlement (one-time payment – art. 38)
Let’s
CALCULATE !
Pension Elements
The type and level of the benefit from the
Fund depends on your:
i. Length of contributory service (CS)
ii. Age at time of separation
iii. Rate of Accumulation for each year
of CS (ROA)
iv. Final Average Remuneration (FAR) –
Revenue Component
Normal Retirement Pension Calculation (Age 62):
Full pension
Years of Contributory Service (CS):
25 yrs
Rate of Accumulations (ROA):
1.50% for first 5 years =
7.50%
1.75% for next 5 years =
8.75%
2.00% for next 15 years =
30%
Final Average Remuneration (FAR) :
$188,888
Full Annual Pension ($188,888 x 46.25%) = $87,360
46.25%
Reduced Annual Pension (i.e. with a lump sum)
(1/3 of $87,360) x 11.697 (estimated actuarial factor) = $340,585
Reduced Pension (2/3 of full annual pension) = $58,240
42
YOUR
7.9%
contributions
will ALWAYS
be paid out
The
Withdrawal
Settlement . . .
Withdrawal Settlement
 One-time payment extinguishing all other
rights.
 Represents a participant’s contributions
plus interest.
 The Organization’s contributions are NOT
reimbursed to participants.
 If CS is more than 5 years, amount is
increased by 10% for each year over 5 up to a
maximum of 100% (=> max. = 15 years CS).
 15 CS years => 10 CS years over 5
 10 CS years x 10% => 100% increase
Contr. +
Interest:
$100,000
100%
increase
Withdrawal
Settlement:
$200,000
The Residual
Settlement . . .
The Residual Settlement
 The Residual Settlement is a one-time payment
made by the Fund and only if no other monthly
benefit is payable.
 Payment is made to the person(s) designated by the
participant (in form Pens.A/2) in accordance with
percentages (if any) set by him/her.
Contributions
plus Interest
Total
Benefits
Paid
Residual
Settlement
In need of
help ?
UNJSPF
P.O. Box 5036
New York, NY 10017
Tel: +1-212-9636931
Fax: +1-212-9633146
E-mail: [email protected]
UNJSPF GVA
UNJSPF NY
If you need further assistance . . .
UNJSPF
Palais des Nations
1211 Geneva 10
Tel: +41-22-9288800
Fax: +41-22-9289099
E-mail: [email protected]
Office Location:
DuPont de Nemours Building
Ch. du Pavillon 2,
1218 Grand-Saconnex,
UNJSPF GVA
How to contact us. . .
At the “PERMANENCE”
Office:
PALAIS DES NATIONS Geneva
AAFI-AFICS Office, Door 15
Office No: A265
Open Hours:
Tuesdays and Fridays
12:00 to 14:30 with or without appt
Prospects
New Integrated Pension
Administration System (IPAS)
 Access to a Member Self Service (MSS)
 Current Services will be retained
 Single access to be used as participant and retiree (Unique
Pension Fund ID to be used)
 View of Demographic information, ability to update personal
information and more features
 A broadcast will be sent out before go-live
 Please Register now on the current website in order to
get automated information from our Webmaster
SAMPLE PARTICIPANT ACCOUNT ON MEMBER SELF-SERVICE (MSS)
Thank you VERY
MUCH
for your attention!