Note by United Nations Participants’ Representatives
to the Pension Board
Direct Election of Retiree Representation on the Board
2019
Background
1. In 2007
at its fifty-fourth session the Board considered a study[1]
on the Possible Process for the Election of Retirees’ Representatives, based on
its endorsement the previous year of the recommendations of the Working Group
on size and composition of the Board. The study affirmed the CEO’s view that
that until such time as retirees were granted full membership on the Board, “their
representation, and the selection of the representatives, should continue to be
done by FAFICS, “in consultation with the Pension Fund’s CEO”.
2. On 5
March 2018, two hundred and ninety seven (297) UN retirees of the UNJSPF signed
a letter[2]
addressed to the USG/OIOS, concerning UN
retiree representation at the Pension Board, in which they raised concerns of
(i) legitimacy of representation; (ii) equitable representation; and (iii) non
transparency and undemocratic practices in FAFICS which only represents about
25% of beneficiaries.
3. In 2018
OIOS conducted a comprehensive audit of the governance structure and related
processes of the United Nation Joint Staff Pension Board[3].
Recommendation 3 of the OIOS audit reads as follows “The Board should determine the number of seats to be allotted to retiree
representatives and facilitate their direct election as full Board members with
voting rights to ensure transparent and democratic representation of
beneficiaries and their interests.
4. Recommendation
4 of OIOS stated “The Board should establish appropriate mechanisms to avoid
conflicts of interest between representatives of FAFICS
5. While Recommendation
3 was accepted by UN Participants’ Representatives, other members of the Board did
not accept the recommendation because in their view “this would undermine the
tripartite nature of the Board and because retirees were unaffiliated with
member organizations”. However the entire Board accepted recommendation 4
regarding implementation of mechanisms to avoid the conflicts of interest between
FAFICS, the Board and management.
6. Based on
its acceptance of the OIOS report, and the outcry from retirees, UN
Participants’ group made a proposal to the Board in 2018[4]
which proposed the establishment of a working group which would facilitate
elections in time for the 66th Session. Even though there was no consensus on this
item and the matter was not pursued.
7. However,
in its resolution 73/274 of 2018, the General Assembly, having noted the OIOS
audit on governance of the Pension Board 73/341 also expressed the expectation in
paragraph 14 (b) that the Governance
Working Group would review “the composition and size of the
Board, including the role of retiree representatives and the modalities
for directly electing retiree representatives to the Board.”
8. There had
been much discussion in 2006 regarding retirees being seated at the Board,
however by adopting the CEO’s note in 2007 the Board agreed to modalities that
would obviously give rise to conflicts of interest. For example paragraph 9 of
JSPB/54/ R.29 states that “Until” such time as retirees were granted member
seats on the Board and the Standing Committee, their representation and the
selection of the representatives should continue to be done by FAFICS, in consultation with the Pension Fund’s CEO. [emphasis
added]
9. It is
the view of many retirees current and prospective, that 1) direct elections
would resolve the issue of representation of retirees who are not members of an
AFICS or FAFICS organizations, 2) retirees should be represented by a member
seat on the Board and 3) the representative should be chosen via a democratic
and transparent process, which would
resolve the issues of conflicts of interest currently observed between FAFICS members and senior management of the
Fund.
10. Paragraphs
15 to 19 of JSPB/54/ R.29 set forth a number of perceived obstacles to direct
elections of retirees. In the 2018 Pension Board report[5]
Board members expressed doubt as to the
world- wide reach of the Fund and the technological means of certain retirees
to take part in elections. OIOS reminded
the Board that UNFCU conducts world-wide elections every year, and that a
satisfactory participation rate is not as important as the fact that every
retiree is given the opportunity to participate.
11. However,
in an age of e-voting, both costs have decreased and accessibility has
increased. The obstacle of Administrative
Rule B.4 (AR B.4) which prevents disclosure of participants’ and beneficiaries’
information, can be easily eliminated by a reasonably simple and easy to
implement solution.
Modalities for Elections
12. The Fund
would provide a check box in Member Self Service in IPAS where retirees wishing
to participate in an election would opt to permit the Fund to provide their
email addresses to a e-voting company obtained for the purpose.
13. An
e-voting company would be hired to conduct the election.
14. The
Secretary of the Board would place a call on the UNJSPF website or via email for
7 retiree volunteer Polling Officers.
15. The criteria
for candidates for Polling Officers or the Retiree Representative member on the
Board would be that the individual must have retired from a member organization
of the Fund and must be in receipt of a periodic benefit from the Fund in
accordance with Articles 28, 29 and 33.
16. Therefore the Board may wish to approve these modalities and request
the Secretariat to implement the functionality and activities that would
facilitate direct retiree elections as described above.
[2] Open Letter from UN
retirees to the USG/OIOS http://unpension.blogspot.com/2018/03/open-letter-to-heidi-mendoza-un-retiree.html
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