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Retirement Age Rules Dominate Budget Committee's Debate on Conditions of Service for United Nations Employees
Labour costs made up 70per cent of the United Nations regular budget and their growth, specifically the number of staff and the size of their compensation packages, was the primary driver of the Organization's budget growth in the past decade, the representative of the United States said.The impact of that trend was magnified in the United Nations common system's 23 other organizations, he said, noting that many of those bodies relied on voluntary contributions that had dwindled since the global financial crisis. Failure to understand the budget impact of increasing staff costs had forced the World Health Organization (WHO) to cut 800 critical HIV/AIDS workers in Africa, and led the governing bodies of three organizations to request immediate action to relieve staff cost pressures. The one year margin had continued increasing, from 13.3per cent in 2010 to a projected 22.4percent in 2014, withthefive year average margin creeping above its desired midpoint for the first time in history. He welcomed the Commission's decision to freeze the one year margin, but called for more action to bring it back to the midpoint, stressing that the only option was a downward correction in the post adjustment, a pay add on that fluctuated.While India's representative acknowledged, along with several other delegations, that the margin level was approaching the threshold of unacceptability, he urged against any changes to post adjustments. He pointed to the recent creation of higher level posts at a greater rate than ever before, stating that it was impossible to get consistent lists of Under Secretary Generals and Assistant Secretary Generals, and that "mandate creep" had blunted monitoring of posts, functions, levels and finances.He said he expected the Commission's ongoing comprehensive review of the compensation package to improve the United Nations workforce's geographic and gender diversity, a view echoed by the representative of Fiji, who, speaking on behalf of the "Group of 77" developing countries and China, noted a particularly poor gender balance in senior positions, and called for more efforts to recruit women from developing countries.He also took up the issue of the increase in the mandatory age of staff separation from the United Nations to 65 years, stating that he would listen to the United Nations staff representatives, the common system's organizations, and the United Nations Joint Staff Pension Fund on the issue.Two such staff representatives addressed the Committee, expressing support for the increase. The President of the Federation of International Civil Servants' Associations noted the need for a system wide approach to separation, and the President of the Coordinating Committee for International Staff Unions and Associations of the United Nations System cited worldwide trends towards later retirement ages and the potential positive impact such a change could have on the Pension Fund.The representative of Japan, however, expressed reservations about an increased age of separation. She called for extremely careful consideration of the plan, noting the great effects that such a change could have on human resource management, including the Organization's geographical distribution and rejuvenation. She said she was willing to discuss the deferment of this proposal.Also today, Kingston P. Rhodes, Chairman of the International Civil Service Commission, submitted that body's report, which had focused on reviewing the United Nations common system compensation package. Johannes Huisman, Director of the Programme Planning and Budget Division, introduced the Secretary General's statement on the administrative and financial implications stemming from the Commission's report, and Carlos Ruiz Massieu, Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), introduced the Advisory Committee's related report.The representatives of the Republic of Korea and the European Union also spoke today. It had before it the Report of the International Service Commission for 2013 (document A/68/30), and two documents on the Administrative and financial implications of the decisions and recommendations contained in the report of the International Civil Service Commission for the year 2013. Those two documents included a statement submitted by the Secretary General in accordance with rule 153 of the rules of procedure of the (document A/C.5/68/3), and the Fifth report of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) on the proposed programme budget for the biennium 2014 2015 (document A/68/7/Add.4).KINGSTON P. RHODES, Chairman, International Civil Service Commission (ICSC), presented the Commission's report for 2013 (document A/68/30), saying it had focused on reviewing the United Nations common system compensation package. The Commission was aware of the serious financial situations faced by Member States, including their national civil services and common system organizations. The Commission's review of the common system compensation package covered all elements of remuneration, assessed the history and rationale of elements of the current package and looked beyond the present system to consider alternative approaches and ensure a holistic and integrated approach. Three working groups had been established, on remuneration structure; competitiveness and sustainability; and van cleef and arpels necklace replica performance incentives and other human resources issues. The Commission had sought to redistribute resources to cover the review, he said, noting that it had already placed a significant extra burden on the Commission's administrative and operational capacity.He said the Commission, accounting for people's better health and vitality later into life, considered increasing the mandatory retirement age to 65 years. The United Nations Joint Staff Pension Fund (UNJSPF) Consulting Actuary had estimated that a 70percent utilization rate would lead to a 0.13percent reduction in the actuarial deficit of pensionable remuneration, positively impacting the Pension Fund's long term sustainability, with After Service Health Insurance Liabilities also reduced by 0.85percent. The Commission therefore recommended extending the mandatory age of separation to 65 years, effective from January 2016. The margin had increased in 2013, primarily due to a pay freeze in the fake necklace van cleef arpels comparator service, and it was expected to approach the upper limit of the established range in 2014. Certain variable factors important to calculating the margin might not be known by February 2014. The Commission had concluded that in order to maintain the margin at the established level, no increase in the post adjustment for New York would be possible in 2014.He noted that the pay freeze in the comparator civil service meant the gross level of the comparator's General Schedule had remained the same, though slight changes in the federal tax schedule gave a slight boost to the net level of pay. He requested that the Assembly adjust the United Nations' base/floor salary scale by the same amount as that net change. He pointed also to the Commission's concerns over the methodology to determine allowances for children and secondary dependants and its deferral of a possible 16percent increase in such allowances. A holistic examination was ongoing within the context of the ongoing comprehensive review, he said. He also outlined the results of two salary surveys of General Staff pay, which found that salaries in Paris and Montreal in 2013 were 2.19percent and 1.22percent lower than existing salary scales, respectively, and noted that the Commission had not acted on ACABQ recommendations pertaining to place to place surveys at headquarters locations because the post adjustment system was being assessed through the comprehensive review of United Nations compensation.JOHANNES HUISMAN, Director, Programme Planning and Budget Division, Office of Programme Planning, Budget and Accounts, Department of Management, introduced the Secretary General's statement on the administrative and financial implications of the decisions and recommendations contained in the Commission's annual report (document A/C.5/68/3). Financial implications would stem from conditions of service of Professional and higher categories, namely the increase in the base/floor salary scale and education grant special measures in Belgium, and the conditions of service of the General Service and other locally recruited categories, namely the survey of best prevailing conditions of employment for General Service and related categories in Paris, and the survey of best prevailing conditions of employment for General Service and related categories in Montreal.Financial implications would stem from resolution 67/257, through which the Assembly asked the Commission to report on the progress, preliminary findings and administrative aspects of the comprehensive review of the compensation package during the main part of the Assembly's sixty eighth, sixty ninth and seventieth sessions. To carry out the review, the Commission had requested additional resources of $606,000. Section V of the Statement lays out the corresponding financial implications. This would include, among other implications, for the biennium 2014 2015, an additional appropriation of $195,700 for the United Nations share in the proposed programme budget under section 31, jointly financed administration activities, which would present a charge against the contingency fund.CARLOS RUIZ MASSIEU, Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), introduced the Advisory Committee's report (document A/68/7/Add.4), and said it agreed with the Secretary General's presentation of the financial implications resulting from the Commission's recommendations and decisions. At the Assembly's request, the Commission was required to file an annual report on the progress, preliminary findings and administrative aspects of the comprehensive review of the compensation imitation van cleef and arpels necklace sale package. To carry out the review, the Commission had requested additional resources of $606,000. The Advisory Committee had not objected to the Secretary General's proposal, but expected that efforts to achieve cost efficiencies from the proposed additional requirements would be made.
Labour costs made up 70per cent of the United Nations regular budget and their growth, specifically the number of staff and the size of their compensation packages, was the primary driver of the Organization's budget growth in the past decade, the representative of the United States said.The impact of that trend was magnified in the United Nations common system's 23 other organizations, he said, noting that many of those bodies relied on voluntary contributions that had dwindled since the global financial crisis. Failure to understand the budget impact of increasing staff costs had forced the World Health Organization (WHO) to cut 800 critical HIV/AIDS workers in Africa, and led the governing bodies of three organizations to request immediate action to relieve staff cost pressures. The one year margin had continued increasing, from 13.3per cent in 2010 to a projected 22.4percent in 2014, withthefive year average margin creeping above its desired midpoint for the first time in history. He welcomed the Commission's decision to freeze the one year margin, but called for more action to bring it back to the midpoint, stressing that the only option was a downward correction in the post adjustment, a pay add on that fluctuated.While India's representative acknowledged, along with several other delegations, that the margin level was approaching the threshold of unacceptability, he urged against any changes to post adjustments. He pointed to the recent creation of higher level posts at a greater rate than ever before, stating that it was impossible to get consistent lists of Under Secretary Generals and Assistant Secretary Generals, and that "mandate creep" had blunted monitoring of posts, functions, levels and finances.He said he expected the Commission's ongoing comprehensive review of the compensation package to improve the United Nations workforce's geographic and gender diversity, a view echoed by the representative of Fiji, who, speaking on behalf of the "Group of 77" developing countries and China, noted a particularly poor gender balance in senior positions, and called for more efforts to recruit women from developing countries.He also took up the issue of the increase in the mandatory age of staff separation from the United Nations to 65 years, stating that he would listen to the United Nations staff representatives, the common system's organizations, and the United Nations Joint Staff Pension Fund on the issue.Two such staff representatives addressed the Committee, expressing support for the increase. The President of the Federation of International Civil Servants' Associations noted the need for a system wide approach to separation, and the President of the Coordinating Committee for International Staff Unions and Associations of the United Nations System cited worldwide trends towards later retirement ages and the potential positive impact such a change could have on the Pension Fund.The representative of Japan, however, expressed reservations about an increased age of separation. She called for extremely careful consideration of the plan, noting the great effects that such a change could have on human resource management, including the Organization's geographical distribution and rejuvenation. She said she was willing to discuss the deferment of this proposal.Also today, Kingston P. Rhodes, Chairman of the International Civil Service Commission, submitted that body's report, which had focused on reviewing the United Nations common system compensation package. Johannes Huisman, Director of the Programme Planning and Budget Division, introduced the Secretary General's statement on the administrative and financial implications stemming from the Commission's report, and Carlos Ruiz Massieu, Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), introduced the Advisory Committee's related report.The representatives of the Republic of Korea and the European Union also spoke today. It had before it the Report of the International Service Commission for 2013 (document A/68/30), and two documents on the Administrative and financial implications of the decisions and recommendations contained in the report of the International Civil Service Commission for the year 2013. Those two documents included a statement submitted by the Secretary General in accordance with rule 153 of the rules of procedure of the (document A/C.5/68/3), and the Fifth report of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) on the proposed programme budget for the biennium 2014 2015 (document A/68/7/Add.4).KINGSTON P. RHODES, Chairman, International Civil Service Commission (ICSC), presented the Commission's report for 2013 (document A/68/30), saying it had focused on reviewing the United Nations common system compensation package. The Commission was aware of the serious financial situations faced by Member States, including their national civil services and common system organizations. The Commission's review of the common system compensation package covered all elements of remuneration, assessed the history and rationale of elements of the current package and looked beyond the present system to consider alternative approaches and ensure a holistic and integrated approach. Three working groups had been established, on remuneration structure; competitiveness and sustainability; and van cleef and arpels necklace replica performance incentives and other human resources issues. The Commission had sought to redistribute resources to cover the review, he said, noting that it had already placed a significant extra burden on the Commission's administrative and operational capacity.He said the Commission, accounting for people's better health and vitality later into life, considered increasing the mandatory retirement age to 65 years. The United Nations Joint Staff Pension Fund (UNJSPF) Consulting Actuary had estimated that a 70percent utilization rate would lead to a 0.13percent reduction in the actuarial deficit of pensionable remuneration, positively impacting the Pension Fund's long term sustainability, with After Service Health Insurance Liabilities also reduced by 0.85percent. The Commission therefore recommended extending the mandatory age of separation to 65 years, effective from January 2016. The margin had increased in 2013, primarily due to a pay freeze in the fake necklace van cleef arpels comparator service, and it was expected to approach the upper limit of the established range in 2014. Certain variable factors important to calculating the margin might not be known by February 2014. The Commission had concluded that in order to maintain the margin at the established level, no increase in the post adjustment for New York would be possible in 2014.He noted that the pay freeze in the comparator civil service meant the gross level of the comparator's General Schedule had remained the same, though slight changes in the federal tax schedule gave a slight boost to the net level of pay. He requested that the Assembly adjust the United Nations' base/floor salary scale by the same amount as that net change. He pointed also to the Commission's concerns over the methodology to determine allowances for children and secondary dependants and its deferral of a possible 16percent increase in such allowances. A holistic examination was ongoing within the context of the ongoing comprehensive review, he said. He also outlined the results of two salary surveys of General Staff pay, which found that salaries in Paris and Montreal in 2013 were 2.19percent and 1.22percent lower than existing salary scales, respectively, and noted that the Commission had not acted on ACABQ recommendations pertaining to place to place surveys at headquarters locations because the post adjustment system was being assessed through the comprehensive review of United Nations compensation.JOHANNES HUISMAN, Director, Programme Planning and Budget Division, Office of Programme Planning, Budget and Accounts, Department of Management, introduced the Secretary General's statement on the administrative and financial implications of the decisions and recommendations contained in the Commission's annual report (document A/C.5/68/3). Financial implications would stem from conditions of service of Professional and higher categories, namely the increase in the base/floor salary scale and education grant special measures in Belgium, and the conditions of service of the General Service and other locally recruited categories, namely the survey of best prevailing conditions of employment for General Service and related categories in Paris, and the survey of best prevailing conditions of employment for General Service and related categories in Montreal.Financial implications would stem from resolution 67/257, through which the Assembly asked the Commission to report on the progress, preliminary findings and administrative aspects of the comprehensive review of the compensation package during the main part of the Assembly's sixty eighth, sixty ninth and seventieth sessions. To carry out the review, the Commission had requested additional resources of $606,000. Section V of the Statement lays out the corresponding financial implications. This would include, among other implications, for the biennium 2014 2015, an additional appropriation of $195,700 for the United Nations share in the proposed programme budget under section 31, jointly financed administration activities, which would present a charge against the contingency fund.CARLOS RUIZ MASSIEU, Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), introduced the Advisory Committee's report (document A/68/7/Add.4), and said it agreed with the Secretary General's presentation of the financial implications resulting from the Commission's recommendations and decisions. At the Assembly's request, the Commission was required to file an annual report on the progress, preliminary findings and administrative aspects of the comprehensive review of the compensation imitation van cleef and arpels necklace sale package. To carry out the review, the Commission had requested additional resources of $606,000. The Advisory Committee had not objected to the Secretary General's proposal, but expected that efforts to achieve cost efficiencies from the proposed additional requirements would be made.
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