united nations joint staff pension fund – post-retirement presentation ffoa – rome – may 2013

UNITED NATIONS JOINT STAFF PENSION FUND – POST-RETIREMENT PRESENTATION

FFOA – Rome – May 2013

To share information with you about . . .Reminder/Refresher of what the Fund isActuarial Valuation of the FundProspectsMain Part: Q&A with UN Retirees

Presentation Goals

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UNJSPF: The System

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UNJSPF is a “Defined Benefit” (DB) scheme, namely one where:

• assets are pooled (if funded scheme)

• the benefit is a function of time served and final salary

• the employer bears the market risk.

• The Fund is a US Dollar Scheme

• Beneficiary’s money will not “run out”.

Nature of the Fund

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Actuarial Valuation

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Actuarial Valuation

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Actuarial Valuation

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Prospects

Change in Normal Retirement Age

Improved Investments – Value of Assets reached an all time high

The principal of the Fund’s investment portfolio will not be utilized

to cover the contributions/benefit gap until 2047 (in 34 years).

Even in a “catastrophic” scenario if the real return on investments

is only 2% the principal will not start to be utilized until 2037 (in 24

years).

A “RENDEZ-VOUS” WITH A A “RENDEZ-VOUS” WITH A PENSION FUND RETIREEPENSION FUND RETIREE

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Topics Covered

Monthly Payment of Pensions Currency of Payment Certificate of Entitlement (CE) Quarterly Notification Attestations Moving and Changing address Change of Bank or Account Number Two-Track Survivor’s Benefit Web Access How to reach us

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Q: When can I expect to receive my monthly pension?A: Our payments are made at the following value dates for the

Fund: Cheques: 1st day of the month (01 June 2013) USD payments to USA: Last Business day of the

month (31 May 2013) All other payments: The day before the last Business

day of the month (30 May 2013) Some banks may credit your account at value date

+ 1 or 2 days Euros to Italy and other SEPA (Single Euro Euros to Italy and other SEPA (Single Euro

Payment Area) countries are credited the same day Payment Area) countries are credited the same day

as value dateas value date

Monthly Payment of Pensions

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Q: In which currency can I have my pension paid?A: Our monthly pensions are paid in the 15 following currencies

in the country of your choice*:1. US Dollar2. Euro3. Swiss Franc4. Pound Sterling5. Canadian Dollar6. Australian Dollar7. New Zealand Dollar 8. Singapore Dollar9. Japanese Yen10. Danish Krone11. Norwegian Krone12. Swedish Krone13. Indian Rupee14. Pakistani Rupee15. CFA Franc *Related consequences to be discussed in changing of payment instructions*Related consequences to be discussed in changing of payment instructions

Currency of Payment

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Certificate of Certificate of Entitlement Entitlement

(CE)(CE)13

Q: I am a new retiree and would like to know when I should expect my Certificate of Entitlement (CE)

A: If your monthly pension started after the month of May, you will not receive a CE for the current year.

Otherwise, the CE is sent at the end of October (2013) with a reminder the following January (2014). If the CE is not received, the June (2014) pension is suspended.

Q: For me, I have just received the CE, but how do I fill it?A: You just need to date and sign at the indicated fields as

shown the following slides

Certificat de Droit à Prestation (CE)

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YOUR CERTIFICATE

OF ENTITLEMENT

NAME DATE

TYPE OF BENEFIT AND COUNTRY OF RESIDENCE FOR TWO-TRACKSIGN HERE

DATE HERE

RETIREMENT NUMBER

Q: For me, I received the CE, but because of my age or medical condition, I cannot sign it, what should I do?

A: You can affix your thumbprint at the indicated field and have it witnessed by a UN system Official, attending doctor or Local Government Authorities.

The person witnessing the thumbprint must state his/her name, title and Official Seal in the indicated fields.

For the first time the thumbprint is used instead of signature, a Medical Certificate Medical Certificate should be enclosed to explain the condition preventing the retiree from signing.

Certificat de Droit à Prestation (CE)

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Your Certificate

of Entitlement

(CE)

NAME DATE

TYPE OF BENEFIT AND COUNTRY FOR RESIDENCE FOR TWO-TRACK

Retiree’s Thumbprint Here

DATE HERE

RETIREMENT NUMBER

Name of witness

Title of witnessSignature and Official Seal of Witness

Quarterly Quarterly NotificationNotification

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Q: I receive a statement full of numbers from time to time. What is it?

A: A notification is sent to retirees whenever there is a change in their gross pension amount (without the insurance (ASHI) deduction).

If you are on the USD Track and your pension is paid in USD, the gross payable amount will not change unless there is cost of living adjustment in the USA. The last change and therefore your last statement is dated April 2012.

Quarterly Notifications

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Your Notification: USD Track

and payment in

USD without

ASHI

NOM DATE

TYPE DE PENSION

DATEZ ICI


and payment in USD with

ASHI

NOM DATE

TYPE DE PENSION

DATEZ ICI

Q: What if I am on the USD Track but choose to be paid in another currency?

A: If you are on the USD Dollar Track but request to be paid in a currency other than US Dollar, your payable amount will change every quarter depending on the UN Quarterly Exchange Rate. You will receive a Quarterly Notification

If your net payable amount changes within the quarter, it is usually due to a If your net payable amount changes within the quarter, it is usually due to a change in your After-Service Health Insurance Premiumchange in your After-Service Health Insurance Premium


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and payment in

another currency without

ASHI

NOM DATE

TYPE DE PENSIONSIGNEZ ICI

DATEZ ICI


and payment in

another currency with ASHI

NOM DATE

TYPE DE PENSIONSIGNEZ ICI

DATEZ ICI

Q: Why does it reach me so late while it is always dated on the 24th of the month?

A: The Fund generates about 22 000 statements per quarter22 000 statements per quarter. The Statements are printed by our office in New York and sent to UN Distribution Section for folding and inserting and then sent to UN Postal Office for mailing. Delays and insertion errors are beyond the control of the Fund. The Fund have been notified and has discussed the matter with these UN Departments.

We remind you that they are available on our website at the end of the that they are available on our website at the end of the month preceding the new quartermonth preceding the new quarter. For the Quarter of April-June 2013, they were available on:24 March 2013 for those who are paid in advance

24 April 2013 for those who are paid in arrearsNote: The October 2012 Notifications were destroyed by Hurricane Sandy and were reprinted


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Q: But why do I have friends who always get it before me?A: The statements are generated depending on when the when the

pensions are duepensions are dueFor the Quarter starting January 2013 form example:

For the pensions paid in advance paid in advance (Separations before 31/12/1984), the January 2013 pension, due on 01 January 2013 was paid on 28 December 2012. The statement was then generated on 24 December 2012

For the pensions paid in arrears paid in arrears (Separations on or after 31/12/1984), the January 2013 pension, due on 01 February 2013 was paid on 30 January 2013. The statement was then generated on 24 January 2013

Conclusion: The retirees paid in advance will always get the statement one month before those who are paid in arrears


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AttestationsAttestations

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Q: How can justify my status of UN Retiree

A: We can provide you three types of attestations for this purpose:

1. Benefit Attestation with or without amount2. Annual Attestation (Benefit Statement) showing that

amounts paid during a fiscal year3. Attestation of your period of contributory Service with or

without the amount of your contributions and interest and the contributions from your employing organization.

Attestations

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We provide a monthly benefit attestation (EN or FR) at the request (oral or written) of the retiree. It can be picked up at our offices or mailed to the address in our records.

It’s prepared with or without amount at the request of the retiree

If it’s requested with the amount, the stated amount is the current gross payable monthly amount (including children benefit) in the paid currency at the time of the attestation.

It can include the payment destination (Bank name and account) at the request of the retiree, but we cannot state that the instruction is irrevocable.

Benefit Attestation (Monthly benefit)

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Attestation with or without amount (FR or EN)

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A benefit Statement indicating the payments of pensions dues during the fiscal year is sent at the request (oral or written) of the retiree with 15 working days of the first request to the address on our records. It is sent automatically thereafter at the end of January each year.

All amounts paid during the fiscal year, including lump sum, retroactivity and adjustments, are mentioned.

The amounts indicated are those of the currency paid. The amounts are gross, ie they do not take into account deductions for health insurance premiums. Beneficiaries should contact their insurance section for an attestation covering these deductions.

The amount of a child benefit, if any, is given separately but cannot be omitted.

All annual attestations are issued on the basis of the conditions enumerated above, without exceptions.

Benefit Statement a.k.a Tax Statement(Annual)

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PAYMENTS INCLUDED IN THE 2012 ATTESTATIONS

For retirees paid in advance (Separation before 31/12/84), their attestations for 2012 consist of 12 monthly benefits from January 2012, due in January 2012 (but paid on 29 December 2011) up to and including that of December 2012, due in December 2012 (but paid on 29 November 2012).

For retirees paid in arrears (Separation on or after 31/12/84), the attestations for the fiscal year 2012 consist of the 12 monthly benefits from December 2011, due in January 2012 (but paid on 29 December 2011) up to and including that of November 2012, due in December 2012 (but paid on 29 November 2012).

These attestations are generated based on Section J.2 b) of the Regulations and Rules of the Fund

Benefit Statement a.k.a Tax Statement(Annual)

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Tax Attestation: How it looks outside

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Tax Attestation: How it looks inside

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The Fund can provide an attestation of contributory service at the request of the retirees (normally due to requests for National Pension Offices)

The statement can also include the total contributions and interest from the retiree during his/her participation and the Organization’s contributions for the same period.

Attestations of Contributory Service and Contributions

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Attestations of Contributory Service and Contributions

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MOVINGMOVING

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Q: I am changing my address. Should I inform the Fund? If yes, how?

A : If you are changing your address, even in the same country, you need to inform the Fund by filling out our PF23M form and sending it to the Fund in Original by mail or diplomatic pouch.

Documents received by email (including PDF attachments), photocopies and faxes are not accepted.

Moving

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CHANGE OF ADDRESS

-Please fill the form for our website if possible before printing and signing in order to avoid misinterpretations of letters and numbers

The completed form bearing ORIGINAL SIGNATURE must be submitted to the Fund: No faxes, photocopies or emails will be accepted

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Change of Change of Payment Payment

InstructionsInstructions40

Q: I am changing my bank account, how do I inform the Fund?

A: If you are changing your bank account , even in the same country, you need to inform the Fund by filling out our PF23 Change of payment instructions form and sending it to the Fund in Original by mail or diplomatic pouch.

If your bank informs you that your bank codes (IBAN or SWIFT) have changed, please inform the Fund through the same method.

Documents received by email (including PDF attachments), photocopies and faxes are not accepted.

Change of Payment Instructions

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Q: How long does it take the Fund to make the change?

A: It depends on when we receive the request. We close the payroll around the 10th of the month for the pensions due at the end of the month. (Example: Payroll closing on 10 May 2013 for payments due on 30 May 2013)

So, instructions received after the 7th of the month are normally processed for the following month’s payroll.

Beneficiaries should NOT close their previous account until they receive our confirmation letter informing that

the change in payment instructions has been done

Change of Payment Instructions - Timing

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CHANGEMENT D’INSTRUCTIONS DE PAIEMENT

Please fill the form for our website if possible before printing and signing in order to avoid misinterpretations of letters and numbers

The completed form bearing ORIGINAL SIGNATURE must be submitted to the Fund: No faxes, photocopies or emails will be acceptedPlease include a document Please include a document from your bank showing your from your bank showing your account detailsaccount details

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PAYMENT INSTRUCTIONS NOTIFICATION

Payments are made at the end of the month preceding the month stated on the notification

Please verify the instructions to ensure that they are what you requestedIn extraordinary circumstances, we can change the instructions prior to the expiration of the on year

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Q: So what are the possible consequences for my choice of currency of payment?currency of payment?

A: Your choice of currency has two possible consequences: Unlimited Payment fluctuations and Bank Charges

To avoid unlimited payment fluctuations (up or down), the Track currency has to be the same as Payment Currency.

Track Payment Currency ConsequencesUSD USD No payment fluctuationUSD CHF Unlimited Quarterly Fluctuation USD-CHFUSD EURO Unlimited Quarterly Fluctuation USD-EURLocal Italy (EUR) EURO Limited payment fluctuation (between min-

max)Locale Italy (EUR) USD Unlimited Quarterly Fluctuation EUR-USD

Locale Italy (EUR) CHF Unlimited Quarterly Double fluctuation: EUR-USD, and USD-CHF

Change of Payment Instructions – Choice of Currency

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Q: So what are the possible consequences for my choice of currency of payment?

A: Your choice of currency has two possible consequences: Unlimited Payment fluctuations and Bank Charges

The Fund pays a fee to send pensions, but does not absorb fees related to the receipt of pensions

To avoid bank charges, the payment destination must be in the currency zone.

Currency Destination Bank Charges (yes, no, possible)USD USA NoUSD Other countries Yes for most, with a few

exceptionsEURO SEPA Zone (32 countries) NoEURO Outside SEPA Zone Yes for most, with a few

exceptionsCHF Switzerland NoCHF Outside Switzerland YESOther Payroll currencies In their zones NOOther Payroll currencies Outside their zones YES

Change of Payment Instructions – Choice of Currency

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PENSION ADJUSTMENT SYSTEM

Adjustment of Pensions due to Cost of Living Adjustments

Two-Track

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Q: What is the Pension Adjustment System and why do you have it?

A: The Pension Adjustment System (PAS) is a way of indexing pensions on the Consumer Price Index (CPI). It is designed to protect the purchasing power of a pension from inflation and where applicable from currency fluctuations.

All periodic pensions are adjusted annually if the CPI has

moved by at least 2% from last adjustment

All pensions are calculated initially on the US Dollar Track. Beneficiaries have the option to add a second track called Local Track, that why it is called Two-Track.

Pension Adjustment System: Basics

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Q: What is the benefit of the two-track?

A: The Two-Track:

Provides stability of the pension amount in the currency of your country of residence (the fluctuation been limited between your local track amount and the maximum amount 120/110%)

Maintains the purchasing power of pensions by indexing pensions based on Consumer Price Index in your Country of Residence.

Pension Adjustment System: Two-Track

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Q: How do I know if I am already on the two-track?

A: Take a look at your notification, you will see that there are two columns:

On your left the US Dollar Track and on your right the Local Track (2nd track of the two-track).

If the right column is empty, you are only on the US Dollar Track

Pension Adjustment System: How do I know the Track

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Q: Being on the USD Track, how do I know if the two-track is good for me?

A: Please request an estimate from the Fund. If you have separated after 1992, you can run the estimate from the Web if you are registered and have your PIN number

At this moment, retirement benefits before 1992 as well as disability and survivor’s benefit cannot be estimated in the local track on the website. Please make the request to the Fund and the estimate will be provided within 15 working days.

Two-Track: Is it good for me

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Q: How do I apply for the two-track?

A: Please read the instructions on pages 1 to 4 and fill out page 5 of our PENS E/10 « Declaration of Country of Residence »

Please enclose a document to show proof of residence in the country you are requesting the local track

Two-Track: How do I apply

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PENS/E10

FORM

Form to be signed when requesting the two-track for the first time.

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SAMPLE CERTIFICATE OF RESIDENCE

This document was accepted recently as proof of residence for Italy

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Q: I am on the two-track and I am changing my country of residence, what should I do?

A: Once you opt for the two-track and change your country of residence, you need to inform the Fund within six months of your arrival to the new country.

You must fill out and send our PENS E/11 « Change of Country of Residence » with proof of residence in the new country as well as proof of the date of arrival to the new country.

Your pension will be then calculated under the local track of the new country with effective date the quarter following the receipt of the PENS E/11 form

Two-Track: Change of country of residence

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PENS/E11

FORM

To be filled out when changing country of residence while on the two-track

Proof of arrival is Proof of arrival is required if the arrival required if the arrival date is not mentioned on date is not mentioned on the Certificate of the Certificate of Residence Residence (Passport (Passport with Immigration stamp, with Immigration stamp, Boarding Pass, Tickets Boarding Pass, Tickets etc.)etc.)

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Q: I am on the two-track, can I revert to the USD Track Only?

A: You normally revert to the USD Track only when you change your country of residence to the USA or to another country where the local track is NOT applicable

Exceptions are reviewed on a case to case basis.

Two-Track: Return to the US Dollar Track

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Survivor’s Survivor’s BenefitsBenefits

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Q: If I pass away, will my spouse have a right to a pension?

A: A survivor’s benefit is payable to surviving your spouse if you have the right to a monthly pension, and if the surviving spouse has been married to you prior to your separation from service and remained married to you until death.

Right to a pension

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Q: Under which circumstances would my spouse not be entitled to a benefit?

A: A widow/widower’s benefit would not be payable if you have separated from service prior to 01 April 2001 and opted for a deferred retirement benefit with Lump Sum.

Or

If the marriage was contracted after Separation from Service and that no annuity has been purchased under Article 35 ter.

Right to a Pension

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Q: Upon death, what will the spouse need to do to establish the survivor’s benefit?

A - The Fund reviews the file to see what documents are already with the Fund, among the checklist below. All pension forms are needed in Original while the Fund accept copies of other documents.

Administrative Procedures

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✓ Death Certificate

✓ Marriage Certificate

✓ Divorce decree(s) if any

✓ Birth Certificate for each beneficary (spouse and children under 21)

✓ Original Payment Instructions (Pens. E/2 form) signed by the spouse and authenticated by a UN Official or a Government Authority.

✓ Copy of an official Picture ID of each beneficiary containing signature (such as National ID or Passport)

Required Documents

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PENS.E/2 – Page 1

FORM


The completed form bearing ORIGINAL SIGNATURE must be submitted to the Fund: No faxes, photocopies or emails will be acceptedPlease include a Please include a document from your bank document from your bank showing your account showing your account detailsdetailsPlease check the right box

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PENS.E/2 – Page FORM


The completed form bearing ORIGINAL SIGNATURE must be submitted to the Fund: No faxes, photocopies or emails will be acceptedPlease include a Please include a document from your bank document from your bank showing your account showing your account detailsdetailsPlease check the right box

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Q: Who can witness my spouse signature?

A:

1. The UN Pension Fund if the spouse brings the documents to our offices.

2. Officials of the United Nations System (UN, FAO/WFP, IFAD, WHO, etc.)

3. Local Government Authorities (City Hall), Consular Authorities

Witness of Signature

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Q: How much will my spouse receive as widow’s benefit?

A: In general, the amount equals half of the retiree’s

full pension (before any lump sum commutation)

This amount is payable for life and is adjusted for cost of living adjustment.

Amount

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Q: If the date of death is in mid-month, do I have the right the full month’s benefit?

A: Yes, the retiree has the right to the full amount of the month of death. The spouse has the right of the pension on the first day of the month following the death.

Q: How long would my spouse have to wait to receiving her survivor’s pension after my death?

A: If the Fund receives the required documents in good order, we establish the survivor’s benefit within 15 working days. It is possible depending on when all documents are received to stop the retiree’s pension and establish the survivor’s pension right away.

Transition from Retiree to Survivor

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Q: I am on the two-track, will it be automatically given to my spouse?

A: No it will be established under the US Dollar Track, unless your spouse submits an E/10 form (ref two-track section) with the Payment Instructions.

But when we contact the spouse to request the documents, we do inform about the two-track.

Some spouses may wish to change their residence after the spouse’s death, so it is better to start with the US Dollar Track.

Survivor’s benefit: Two-Track

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Q: What can I do to facilitate the establishment of my spouse pension after my death?

A: Please establish a pension file for your spouse where you can pre-fill out the Pens. E/2 form.

If you have a joint account and your bank agrees not to close it after your death, you can already fill the account number on Page 2 of the Pens. E/2 form.

Keep the Pens. E/2 and a bank document in the Pension File

Please send right now to the Fund a copy of your marriage certificate and a copy of your spouse Official ID (passport or ID card)

Survivor’s Benefit: Recommendation

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Internet AccessInternet Access

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WWW.UNJSPF.ORG 73

After receipt of the PIN code, login to www.unjspf.org, click

on Welcome then on Beneficiary, then click on Login Login

at the Beneficiary’s Portal Home Screen

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http://www.unjspf.org/

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After login, you can access your Quarterly Notification, confirm our receipt of your Certificate of Entitlement and run Two-Track Estimates

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In the unsecured part of our site, you will find important categories such as Forms, Publications and documents (where you can find the bookets), and UN exchange rates CPI and Contacting Us

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SOME BOOKLETS THAT COULD BE OF SOME BOOKLETS THAT COULD BE OF INTEREST TO YOUINTEREST TO YOU

To Contact UsTo Contact Us

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How to contact us. . .

UNJSPF GVA OfficePalais des Nations1211 Geneva 10Tel: +41-22-9288800 Skype ID: unjspf.genevaFax: +41-22-928 9099E-mail: [email protected]

Office:DuPont de Nemours Building Ch. du Pavillon 2,1218 Grand-SaconnexSwitzerlandOpen Hours:Monday-FridayMonday-Friday08:30 to 17:00 with or without Appointment

mailto:[email protected]

How to contact us. . .At the “PERMANENCE”

Office:PALAIS DES NATIONS GenevaAAFI-AFICS Office, Door 15Office No: A265

Open Hours:Tuesdays and FridaysTuesdays and Fridays12:00 to 14:30 with or without appt

Q: I heard you have Skype, how can I use it to call you for free?

R: Please install Then go to Add a Contact and add unjspf.genevaYou will be accepted automatically and our ID is always online.

How to call us free with Skype

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Select the UNJSPF GVA contact and click on

To be able to choose the option given on our phone system, please show the Dial Pad after having initiated the call, by clicking on Call and then Show Dial Pad


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After having clicked on Show Dial Pad, the Dial Pad becomes visible and you can select the option you wish to access on our phone system (for example 1 for beneficiary or 2 for participant)


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OTHERQUESTIONS

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