Dear UN retirees,
Further to my earlier post regarding UN pension and After-Service Health Insurance (ASHI), I am writing to ask you to take action on both issues.
Even if you have already sent emails to FAFICS or HLIS in response to my earlier posts, please send these new emails as well. The new information about continuing increases in health-care costs together with the documented need for independent auditing and verification of health-insurance costs and cost-containment measures, makes these new communications necessary, and they state that they supersede any previous communications on these matters.
There is a new reason for urgency.
A New York Times report today, “Employer Health Costs Are Expected to Spike in 2027,” reports that employer-sponsored health-care costs are projected to rise by an average of 11% in 2027, assuming no changes to health plans. Employers can reduce their costs by changing their plans, but such changes can shift more costs to workers or reduce their benefits. The article describes the resulting 8% increase in employers’ final costs as the steepest since 2003, underscoring the continuing pressure of rising health-care costs on health-insurance participants.
https://www.nytimes.com/2026/09/02/business/health-insurance-increases.html
For UN retirees, this should raise a fundamental question: if health-care costs are going to continue rising, who is independently verifying that the costs being passed on to participants are reasonable, and that measures described as “cost containment” are actually producing the savings claimed?
This is not simply a question of whether health care is becoming more expensive. It is a question of independent oversight and accountability.
The UN's own record makes this particularly important. The Board of Auditors raised concerns about inadequate controls and reported in 2019 that the last audit of actual medical claims had been conducted in 2010. An “open-book” audit was subsequently undertaken in 2022, but its findings do not appear to have been made public. The JIU's 2023 review found that most UN health-insurance schemes were not regularly audited and that cost-containment measures generally could not demonstrate the savings achieved.
There is a second issue: pension.
The General Assembly has mandated a broad review of the UN pension scheme, including its design and ways of lowering costs and contributions. Possible changes could include a hybrid defined-benefit/defined-contribution system, making it important that accrued rights and the integrity of the present defined-benefit system be protected.
There is also an important political context. An April 2026 Devex report identified UN pension reform as one of the “quick wins” the U.S. government intended to seek from the UN in connection with payment of U.S. UN dues. I have written about what this external pressure, together with the current pension review, could mean for the Fund in my UN Pension Blog essay, “Quick Wins and Slow Erosion.”
That is why I am encouraging retirees to take two simple actions:
1. Write to FAFICS and ask what it is doing to protect retirees' interests on both pension and ASHI, including whether it has raised the issues of timely communication, independent health-insurance oversight and verification of cost-containment savings.
2. Write to HLIS and ask about its role in premium-setting and cost containment, how those measures and their claimed savings are independently verified, and what is being done to ensure that retirees receive important information before, rather than after, an enrollment period.
Again, even if you have already written, please send the updated letter. This new communication supersedes the previous one.
These are not matters we should simply read about and move on from. Our collective voice is much stronger than any individual voice, but only if we use it.
Thank you for taking the time to speak up on issues that affect us all.
Please read the relevant UN Pension blog articles at the end of this post,including about the outdated Avaaz petition that went viral earlier this month; details of the changes to ASHI plans; and a "Reality Check on FAFICS: who do they represent?" Note that this article contains important questions on these issues that UN retirees should ask the heads of local FAFICS associations; and please regularly consult the UN Pension Blog for updates:
https://unpension.blogspot.com
Thank you.
Loraine Rickard-Martin
Suggested email to FAFICS
President@fafics.org, Secretary@fafics.org,
cc. Afics@un.org (NY-based retirees) or your local FAFICS association
Subject: Protecting the interests of UN retirees: pension and after-service health insurance
Dear President Shah,
I am writing as a UN retiree concerned about whether our interests are being adequately represented on two issues fundamental to our long-term security: our pension and After-Service Health Insurance (ASHI).
Even if I have previously communicated with FAFICS about these issues, I am sending this letter because important new information has emerged concerning the continuing rise in health-care costs and the need for independent auditing and verification of the UN's self-funded health-insurance plans. This letter therefore supersedes any previous communication I may have sent on these matters.
The urgency of the ASHI issue has been underscored by today's New York Times report, “Employer Health Costs Are Expected to Spike in 2027.” The report projects that employer health-care costs will rise sharply again next year, reinforcing the concern that rising health-care costs are likely to remain a continuing pressure on participants.
https://www.nytimes.com/2026/09/02/business/health-insurance-increases.html
For UN retirees, this raises a fundamental question: if health-care costs are expected to continue rising, what independent assurance do we have that the costs underlying our self-funded health plans are being adequately scrutinized and that measures described as cost containment are actually producing the savings claimed?
I would appreciate a clear response on what FAFICS is doing to safeguard retirees' interests, particularly on the following:
Pension: What position is FAFICS taking on the General Assembly's mandated pension review, including possible changes in pension design and proposals to lower costs or contributions? What safeguards does FAFICS believe are necessary to protect accrued pension rights and the integrity of the existing defined-benefit system? Does FAFICS regard COLA as an integral component of accrued pension rights?
The broader political context also warrants attention. An April 2026 Devex report identified UN pension reform as one of the “quick wins” the U.S. government intended to seek from the UN in connection with payment of U.S. UN dues. What position is FAFICS taking regarding this external pressure for pension reform and cost reduction?
ASHI: What concerns or recommendations has FAFICS conveyed to the UN Administration regarding the affordability and sustainability of ASHI, including this year's significant premium increases?
The need for independent oversight is particularly important. The Board of Auditors raised concerns about inadequate controls and reported in 2019 that the last audit of actual medical claims had been conducted in 2010 (A/74/5 (Vol. I)).An “open-book” audit was subsequently undertaken in 2022, but its findings do not appear to have been made public. The JIU's 2023 review (JIU/REP/2023/9) found that most UN health-insurance schemes were not regularly audited and that cost-containment measures generally could not demonstrate the savings achieved.
These findings are difficult to reconcile with continuing substantial increases in premiums and the repeated emphasis on cost containment.
What independent assurance exists that the costs underlying the UN's health-insurance plans are being adequately scrutinized and that the cost-containment measures relied upon by the Administration are actually producing the savings claimed?
There is also the question of timely communication. The 1 May town hall did not include information about this year's premium increases because the new premiums had not yet been finalized, and many retirees were not aware that the town hall was taking place. Information about the premium increases was subsequently provided after the June 2026 enrollment period, leaving retirees without timely information that could have enabled them to consider whether to change plans.
Did FAFICS raise concerns about this lack of timely communication and about whether retirees were given a meaningful opportunity to make informed choices during the enrollment period?
Finally, FAFICS presents itself as representing the interests of UN retirees. How does FAFICS consult its affiliated associations in developing its positions, and how does it ensure that the interests of retirees who are not members of those associations are also taken into account?
These issues are too important for retirees simply to assume that our interests are being adequately safeguarded. We need to know what FAFICS is advocating, what positions it is taking, what safeguards it considers necessary, and how it intends to defend retirees' interests throughout the pension review and in decisions affecting ASHI.
I would therefore appreciate a substantive response to these questions.
Sincerely,
[Name]
UN retiree
Suggested email to HLIS
HLIS@un.org, cc ASHI@un.org, cc Afics@un.org, (NY-based retirees) or your local FAFICS association
NY-based UN retirees: cc Afics@un.org. UN retirees based elsewhere, please copy the head of the local Fafics association.
Subject: After-Service Health Insurance: rising costs, independent oversight and timely information
Dear Head of HLIS,
I am writing as a UN retiree concerned about this year's ASHI premium increases and, more broadly, about how decisions affecting retirees are justified, independently overseen and communicated.
Even if I have previously communicated with HLIS about ASHI, I am sending this letter because important new information has emerged concerning the continuing rise in health-care costs and the need for independent auditing and verification of the costs underlying the UN's self-funded health-insurance plans. This letter therefore supersedes any previous communication I may have sent on these matters.
Today's New York Times report, “Employer Health Costs Are Expected to Spike in 2027,” makes this issue particularly timely. The report projects that employer health-care costs will rise sharply again next year, reinforcing the concern that rising health-care costs are likely to remain a significant and continuing pressure on participants.
https://www.nytimes.com/2026/09/02/business/health-insurance-increases.html
That makes independent scrutiny of those costs and of the effectiveness of cost-containment measures increasingly important.
I appreciate HLIS's explanation that this year's increases reflect rising health-care costs, utilization, specialty medications and other factors, and that the Health Insurance Committee considers claims experience, utilization, reserves and other information when making recommendations.
But two fundamental questions remain.
First, what is HLIS's role in developing and reviewing premiums, and to what extent can it recommend or advocate measures to contain costs? More importantly, how are the effectiveness and claimed savings of those cost-containment measures independently assessed and verified?
This question is particularly important given the history of oversight of the UN's self-funded health-insurance plans.
The Board of Auditors reported in 2019 that the last audit of actual medical claims had been conducted in 2010 (A/74/5 (Vol. I)). An “open-book” audit was subsequently undertaken in 2022, but its findings do not appear to have been made public. More recently, the JIU's 2023 review (JIU/REP/2023/9) found that most UN health-insurance schemes were not regularly audited and that cost-containment measures generally could not demonstrate the savings achieved.
These are significant findings.
If the plans are self-funded and participants are being asked to pay substantially higher premiums because costs must be contained, there should be clear, independent assurance that the costs are properly scrutinized and that measures presented as cost-saving actually deliver the savings claimed.
Please explain what independent audit or verification mechanisms currently exist, who conducts them, how often they are undertaken, and whether their findings are made available to participants.
Second, what is HLIS doing to ensure that all ASHI participants receive timely and clear information before significant changes take effect?
This year's experience raises particular concerns. The 1 May town hall did not include information about the premium increases, since the new premiums had not yet been finalized, and many retirees were not aware that the town hall was taking place. Information about the premium increases was subsequently provided after the June 2026 enrollment period.
As a result, retirees did not have timely information about the increases and therefore did not have a meaningful opportunity during the enrollment period to consider whether changing plans might be appropriate.
What steps is HLIS taking to ensure that retirees receive important information about changes to premiums and benefits before, rather than after, the enrollment period in which they may need to make decisions?
Finally, given the likelihood that health-care costs will continue to rise, what longer-term measures are being considered to protect the sustainability and affordability of ASHI without simply transferring an increasing share of the costs to retirees?
I would appreciate a substantive response to these questions, particularly concerning independent auditing and verification of health-care costs and the effectiveness of cost-containment measures.
Thank you for your attention to these concerns.
Best regards,
[Name]
UN retiree
Relevant articles:
https://unpension.blogspot.com/2026/05/quick-wins-and-slow-erosion-whats-at.html
https://unpension.blogspot.com/2026/08/a-reality-check-on-fafics-un-retirees.html
https://unpension.blogspot.com/2026/08/un-health-insurance-whats-changing-in.html
https://unpension.blogspot.com/2026/08/un-pension-fund-members-avaaz-petition.html
