Pension Board Chair to Participant Representatives: "It's not discussable!"

NOTE FROM LOWELL FLANDERS (REPOSTED FROM FCUNS FACEBOOK GROUP)

13 JULY 2017

At last year’s meeting of the Pension Board, the Chair, Vladimir Yossifov, is reported to have muzzled the UN staff unions, preventing them from making a statement to the Board. He’s actively supported the CEO in blocking two duly elected participant representatives from participating in the UN Staff Pension Committee. 

Now he seems to be again attempting to place a gag order on the participant representatives. On 10 July they sent a letter to all participants (posted below on FCUNS). Note in particular Yossifov’s statement below which raises the question: Has he thought to reprimand the CEO for raising the issue (over which he has no purview) in the first place (at the AFICS/NY annual assembly, video also posted on FCUNS)? Since the matter is not “discussable” as Yossifov says, why did the CEO believe he could discuss it?

Quote from Yossifov's message: “In particular, I would like to state on record the following underlying issues that govern the manner in which the Pension Board conducts its business. First, the UNJSPF has been established by the United Nations General Assembly (UN GA) as a defined-benefit pension plan and this question is not discussable. This is also very clear from the UNJSPF Regulations and Rules. There is no threat or challenge to this status and to raise the possibility of a change in this status with staff is to cause unnecessary concern.”

__________________________________________________________________________________

This message is sent on behalf of Mr. Vladimir Yossifov, Chairman of the Pension Board, 63rd session:

Re: Message from UN participant representatives to the Pension Fund / Message des représentants des participants de l'ONU au Fonds de Pension

Dear Mmes. Abu-Rakabeh, Nyiratunga, Ndiaye and Mr. Richards,

It has come to my attention that you sent a message on 10 July 2017 concerning Pension Fund matters to all UN staff members. As members of the United Nations Staff pension Committee (UNSPC) and the United Nations Joint Staff Pension Board (UNJSPB or the Board) you are part of the governance of the United Nations Joint Staff Pension Fund (UNJSPF or Fund), and therefore, you have a fiduciary duty to represent your constituency in the best interest of the Fund in discussions and cooperation with the two other constituent groups of the Board – namely the representatives of the Governing bodies and the administrations of the 23 members organizations. Unfortunately, some of the information contained in your above mentioned message is incorrect. Broadcasting inaccurate information outside the governance structure of the Fund on issues that will be discussed in few weeks in the Board session is not conducive to effective deliberations of the United Nations Joint Staff Pension Board.

In particular, I would like to state on record the following underlying issues that govern the manner in which the Pension Board conducts its business. First, the UNJSPF has been established by the United Nations General Assembly (UN GA) as a defined-benefit pension plan and this question is not discussable. This is also very clear from the UNJSPF Regulations and Rules. There is no threat or challenge to this status and to raise the possibility of a change in this status with staff is to cause unnecessary concern.

As you know, the Pension Board is governed by its self-contained Regulations and Rules. Its Rules of Procedure (C. 11) provide that the meetings of the Board are held in private and the documentation is also kept private. The Board consists of members of the Staff Pension Committees (SPCs) and any matters before it are normally discussed and agreed to in the respective SPCs or in the relevant constituent groups, prior to the deliberations in the plenary session. The Pension Board acts normally by consensus and its deliberations and decisions are included in its annual report to the UN General Assembly. That document is a public document.

Furthermore, the Board has a tri-partite composition. It consists of members from the Governing Bodies (including UN General Assembly representatives), Executive Heads (Administrations) of the Fund’s 23 member organizations, and the representatives of the Participants in the Fund. Each constituent group has 11 Board members with voting rights. Furthermore, each SPC can send representatives to the Board’s session who participate fully in the deliberations at the Board’s sessions. Retirees and beneficiaries are represented by FAFICS. It is important to recognize this governance structure. The Participants’ Representatives are there to represent all the staff of all the member organizations of the Fund who are participants in the Fund and not just of their particular member organizations. Although all staff of the 23 member organizations are represented by the Participants’ representatives, the Pension Board has granted also access to the Board sessions to FICSA and CCISUA with an observer status. It must be clear that the business of the Board cannot be equated to staff/management consultations or negotiations. The Board’s decisions are about governance and fiduciary duties in respect of operations of a USD 59 billion pension fund with over 128,000 participants and over 75,000 beneficiaries. Hence, the duties of the Board - which is an independent, inter-agency entity and a subsidiary organ of the United Nations General Assembly - go way beyond human resources management issues.

The role and responsibilities of the Pension Board with regard to the administration of the Fund in policy making, strategic decision, decision-making, operations, appointments, and reporting are well defined in the Fund’s Regulations, which govern the administration of the Fund and are approved by the UN General Assembly.

The Pension Board has a supervisory function for the management of the Fund and the decisions of the Board are binding for the operational management of the Fund, once these decisions have been confirmed or endorsed by the UN General Assembly, as required. Also, as regards the investments of the Fund, these are under the fiduciary responsibility of the UN Secretary-General and the Pension Board can only make and submit comments and/or observations. However, the responsibility over all investment matters, including its accounting, control, risk management, strategies and results remains with the UN Secretary-General.

Many of the matters you raised are regular, recurrent topics being considered by the Pension Board periodically. As I indicated above, all issues under the various agenda items of the Board session, are discussed first at each of the SPCs of the 23 member organizations, and their representatives come to the session of the Board with a mandate or direction from each SPC. These issues are also discussed in each of the three constituent groups who express their positions on the plenary deliberations. Observers can participate in the deliberations of the Board, however their observations or suggestions are not binding for Board members. Usually the participant’s representatives gather suggestions/comments from their constituency (participants/staff members) of their employing organizations and bring these issues to the attention of the respective SPC, who decides which of these issues to be brought to the Board. You may wish to review past Board reports in order to get an idea of issues addressed by the Board in the past and decisions that have been made. They are available through the Fund’s portal for Board documents. I very much hope that the discussions in the Board will continue to properly address all important matters to be discussed under the different agenda items and will lead to conclusions and decisions that will continue to provide solutions that ensure that the Fund continues to be strong, efficient and solvent, as it is currently, and has been over the many years since its inception.

As regards your concern about the election of two staff of the UNJSPF Secretariat to serve as members of the UNSPC and possibly as members of the Board, this issue has been addressed by the Board’s Standing Committee (not by the CEO) which concluded that since there was a conflict of interest between their official function (as staff members of the UNJSPF secretariat) and the possibility for them to become members of the Pension Board (the Governing body of the Fund), these two staff cannot serve on the UNSPC and hence on the Pension Board until the conflict of interest has been resolved.

I look forward to working with you during the forthcoming 64th session of the Board (24-28 July 2017) in Vienna.

Vladimir Yossifov
Chairman of the Pension Board
Sixty-third session