Sunday, November 11, 2018

UN Fifth Committee welcomes increased market value and urges Pension Fund to reduce payment backlog, 11 November 2018

Welcoming Increased Market Value of United Nations Pension Fund Assets, Speakers at Fifth Committee Urge Action to Reduce Backlog in Payment to Beneficiaries


"Speakers today welcomed a surge in the market value of the assets of the United Nations Joint Staff Pension Fund, 70 years after its establishment, but reiterated concerns about a backlog of payments to beneficiaries as well as governance issues, as the Fifth Committee (Administrative and Budgetary) tackled the Organization’s multibillion‑dollar pension system, its operations and performance."

Some things to note in the summary of the Fifth Committee meeting on 9 November (link below to the full press statement):
See also the link to UN TV below and watch the full statements:
Several speakers flagged the continuing backlog in pension payments which Japan said “risked undermining the overall credibility of the Organization’s pension system”.
On the comprehensive OIOS governance audit (A/73/341) Uganda said “the OIOS recommendations are a road map for much needed improvements to the Pension Board’s structure and processes and the General Assembly must ensure the Board addresses issues raised by OIOS as a matter of urgency.” It’s noteworthy that Russia “voiced concern about the recommendations of OIOS, saying his delegation is unable to support most of them.”
The RSG for Investments noted that “While investment performance exceeded the long term rate of return goal of 3.5 per cent during the biennium 2016 2017, thanks largely to investment returns of 16.2 per cent in 2017, the Fund cannot realistically expect to always meet that objective, he said. Returns so far in 2018 are running close to zero amid significant financial market volatility. The Fund’s fully funded status provides a financial cushion to withstand a period of low returns, he said, confident that the Office of Investment Management, with the General Assembly’s support, can address whatever challenges the market presents.”





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