Note by UN Participants’ Representatives
to the Pension
Board
Terms of Reference for Members of the Pension Board
2019
Summary
The General Assembly in is resolution 73/274 paragraph
14(a) noted that the Board would review The terms of reference,
and self-evaluation methodology of Board members; The
resolution takes note of the OIOS recommendation 1 in its report A/73/341 as follows:
“The Board should: (a) establish clear terms of reference for its members outlining, inter alia, the desirable competencies for their appointment and any appropriate restrictions or limitations; and (b) review its current methodology for self-evaluation to make the exercise more effective and useful.”
Using a best practice approach[1] the proposed
terms of reference
are based on definitions of ‘fiduciary duties’
found in the
laws of various member states[2] [3] taking into due consideration, the tripartite nature
of
the UN Joint Staff Pension Board.
The Terms of Reference for the Board should also consider
paragraph 44 of resolution 73/274 which highlights the
importance attached by the General Assembly to “continuing to
ensure unfaltering accountability by the Pension Board…”
[emphasis added] and would therefore also require that
there be consequences in the event these
terms are violated.
Therefore the Board may wish to endorse the attached list of duties to be
incorporated as Terms of Reference (TORs) for Board members and request the
Governance Working Group to i) examine and recommend disciplinary measures in
the case of violation of TORs and ii) review the methodology for
self-evaluation so as to identify necessary training to enhance the
competency of Board members.
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Terms of reference for Board members
An individual nominated, appointed or elected to the United Nations Joint Staff Pension Board shall owe the following fiduciary duties to all the participants and beneficiaries of the Fund:
i) Duty to become familiar with and
observe the UNJSPF regulations and rules of finance, administration and procedure, General Assembly resolutions and orders of the UN Appeals
Tribunal.
ii)
Duty of loyalty to all participants
and beneficiaries of the fund
iii)
Duty to act in the
interest of said participants
and beneficiaries
iv)
Duty to seek knowledge in regards to the investments of the Fund
v) Prudence in dealing with the liabilities of the Fund – paying benefits and defraying reasonable costs of the administration of the Fund.
vi) Make honest efforts to read the valuation of the Fund- ask question the methods and assumptions that do not make sense
vii)
Duty to seek independent advice on matters related to the oversight of the
Fund.
Additionally
Board members shall:
●
Ensure the resolutions of the General Assembly are adhered to
●
Report non-observance to the General Assembly
● Ensure prudence and reduction of risk to Member
States
● Ensure the social
security of participants of the Fund is
upheld so as to be able to attract a
competitive workforce
●
Ensure prudence in administration of Fund expenditure and use of resources
●
Keep participants and beneficiaries abreast and informed of Fund matters
● Ensure that proposals to
enhance the defined-benefit
consider the overall
health of the Fund
Consequences
In examining itself the Board should decide on
consequences for any member who violates these duties by applying disciplinary
measures such as censure or other review by the Standing Committee including recall.
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