FORMER FAO AND OTHER UN STAFF ASSOCIATION FFOA

Transcription

1 FORMER FAO AND OTHER UN STAFF ASSOCIATION FFOA FFOA/GA/2010/03 Fortieth Session of the General Assembly Wednesday, , at 09:30 hours Green Room, FAO Headquarters, Building A PROVISIONAL REPORT Thirty-ninth Session of the General Assembly Wednesday, 27 May 2009, at 09:30 hours Green Room, FAO Headquarters, Building A Page 1 of 10 pages 1. Opening of the Thirty-ninth Session of the General Assembly by the President of FFOA The President of FFOA, Mr Anton Doeve, opened the session at 09:35 hours. In his opening speech he addressed the assembly as follows: Esteemed guests, members of FFOA, dear friends and all those who, with their presence, enhance the significance of this General Assembly, I warmly welcome you all and thank you for attending this meeting. As you may recall, when opening last year s session I spoke about the past and we commemorated together the first centenary of the opening, here in Rome, of the International Institute of Agriculture, which was the forerunner of FAO. But that was an occasion which happens only once in a century. Today, instead of speaking about what happened in the past, I hope you will allow me to speak instead of the future, your future, our future. Each one of us here in this room, including perhaps our esteemed guests, has many more yesterdays than tomorrows and therefore our future is shrinking fast and becomes more precious with each tomorrow that has become a today and then fades away into another yesterday. It is a law of economics that when the volume of a commodity decreases its value increases proportionally. Therefore, each one of our remaining tomorrows will make us richer than we were before. Every day is a bonus, a welcome gift. When I was much younger, which, admittedly, is a long time ago, a modestly successful film was shown in the cinemas in which an actress, herself modestly successful, sang a song, the refrain of which went as follows: The future is not ours to see, que sera, sera. And of course, Doris Day was right. We cannot see the future; we cannot reach out to it, touch it and say: look, this is my future. But, although seeing and physically touching our future will always be beyond our reach, we can do something about it; we can shape it and give our future a sound and solid foundation which can safeguard the security of our later days. Retirement is, of course, the end of an important period in our lives, we end our professional career, and we have to say arrivederci to our colleagues and collaborators we have come to appreciate. Some of them became our friends for the rest of our lives. Retirement is also a withdrawal and a retreat from the activities and interests which kept us occupied for so much of our time. And a great deal of that time was not even our own, it belonged to our employer and the relative importance we used to give to the activities of our daily working life were influenced by the importance our employer used to give to them. Retirement, however, also is the beginning of a new phase of our lives, it is like re-awakening in a different land where new values and certainties exist and shape our thoughts and the importance we give to the different tasks we perform. It is probably the only period left to us in which we can start doing our own things the way we always wanted to but never were able to or had time for. It can be a period of self-discovery when we find that we possess abilities to perform tasks we never expected to find in ourselves and which bring to life new aspects of our personalities we never suspected were there.

2 And that, dear friends, is where the undiscovered wealth of our future lies, the power to explore our hidden strengths and talents, the freedom to do and realize what we always wanted to achieve. Naturally, we should build our future by using wisely the building bricks which are handed to us by our former employers and insert them harmoniously into the structure of the social securities that will carry us through and protect us throughout the remaining days of our future. And to be able to do that in a responsible manner we should, of course, know what they are and what their meaning is and where to find them and who can give us a helping hand when needed. To illustrate how important it is to devote some time and effort to find out what we can do ourselves to safeguard the future of ourselves and the ones we love and wish to protect, let me ask you the following questions: How many of the spouses who will one day remain as what are referred to as surviving spouses know where to find an electronic claims form for Vanbreda? And how many of them know how to fill it in correctly and how to consult the websites where the answers to their questions are available? Another question could be: How many of these surviving spouses know the details of the procedures to be followed and the documents to be produced when their partner is no longer there and they have to cope on their own with obtaining their widows or widowers pension? And that at a time when they are burdened by sorrow and stricken by grief. Your Executive Committee wants your future to be clear and without uncertainties. Therefore, it is organizing an information session in collaboration with Vanbreda in the middle of June where we will go through all the questions our members may have with regard to their medical insurance. Another session will be organized to clear up any doubts that may remain about what to do when you or your spouse remain alone. Details will be distributed as soon as they are finalized. The future of one of our members is the concern of all our members because we all belong to the same family of Senior Citizens of the United Nations and should look after each other when needed. I wish for all of you a secure, safe and strong future for many more years to come! May I now ask you, in accordance with our tradition, to stand up and observe a few moments of silence to honour the staff, the pensioners, consultants, peacekeepers and all those who served a United Nations Organization and who have passed away since our previous General Assembly. May their souls rest in eternal peace. 2. A. Establishment of a quorum and announcement of the number of proxies Mr Doeve announced that a quorum was present in accordance with the Association's Statutes and that, consequently, any decisions taken by the session would be binding on all members, wherever they might be. Some 140 members were present. 19 proxies were officially held by 9 members. Mr Giorgio Eberle, Mr Maurice Purnell and Mr Bronek Szynalski were nominated rapporteurs. Ms Marta Bochicchio and Ms Rosa Maria Buri provided simultaneous English-Italian interpretation. Mr Alex Van Arkadie and his son, Mr Anagi Angelo Van Arkadie, agreed to make a photographic and a cine record of the meeting, for which we are most grateful. 2. B. Election of the President of the Thirty-ninth Session of the General Assembly Mr. Doeve proposed that a familiar figure, who has participated many times at the FFOA General Assembly as Deputy Director-General of FAO, Mr David Harcharik, should chair this General Assembly and he was elected by acclamation. Mr Harcharik then took the Chair. 3. Adoption of the Provisional Agenda (FFOA/GA/2008/02) As no proposals for changes to the Provisional Agenda had been received, it was adopted. 4. Draft Report of the 38 th Session of the General Assembly held on 12 th June 2008 (FFOA/GA/2009/04) The Draft Report had been circulated in 2008 with Newsbrief 69. It was adopted without comment by the General Assembly under resolution FFOA/GA/2009/06A. 5. Proposal to elect an Honorary President The proposal to elect Mr Lennart Bage, Executive Director of IFAD from 2001 to 2009, as an Honorary President of FFOA had been circulated with the election documents (FFOA/GA/2009/ 04). He 2

3 had signed the agreement with FFOA in 2003 and had always been very supportive of the Association. Mr Bage was elected by acclamation, and Mr Doeve showed the plaque which will be presented to him. Mr Prien expressed the thanks of the IFAD staff for the honor conferred and those of Mr Bage himself who regretted that he could not be present on this day. 6. Address by the Representative of the Director General of FAO Mr Nicholas Nelson, Officer-in Charge, Finance Division (AF), spoke on behalf of the Director-General of FAO, with particular reference to FAO reform. Chairperson, Ladies and Gentlemen, On behalf of the Director-General I would like to welcome you to FAO for the 39 th Annual Assembly of FFOA. I would also like to extend my welcome to the Representatives from IFAD, WFP and the guests from the UN Joint Staff Pension Fund. Your Association unites former civil servants from FAO, IFAD, WFP and a number of other UN Organizations represented in Rome. The occasion of the Annual Assembly provides the opportunity to former UN staff to meet and discuss issues of common interest and it provides for us in FAO the chance to see many of our former colleagues. Many of you continue to have a keen interest in the activities of our Organization and I should like to take this opportunity to update you on some important developments that have taken place since your last meeting in June FAO Reform Last year we informed you about the establishment of the Conference Committee for the follow-up to the Independent External Evaluation (in short CoC-IEE) which was tasked with preparing proposals for an immediate plan of action. Based on the work of the CoC-IEE, the special session of the Conference adopted the Immediate Plan of Action for FAO Renewal (IPA) in November last year. The IPA is unique in many ways, in that it is the culmination of the most comprehensive reform process by any UN Organization; it is also highly ambitious in its timeframe for implementation; and it is being carried out with a high degree of staff participation and in close partnership between the Secretariat and the Member Countries. The IPA contains over 260 individual actions. In an attempt to group the various actions into meaningful and synthetic bodies of work, various actions were bundled into 14 projects (to name only a few: Governing-body reform; Reform of programming, budgeting and results based management; Headquarters structure; Culture Change and Human Resources). Since the beginning of this year, the Organization is moving ahead in the implementation process. About one half of the IPA actions have started and some have been concluded. The reform process is complex, all the more so as the IPA is a package of inter-dependent measures which cannot be implemented in isolation. Although we are at the beginning of the IPA implementation, we are already starting to see important changes in the Organization, including in the way we work. I would like to highlight a few key issues. We are making progress in developing a results-based framework as part of the Medium Term Plan. This is helping to provide a means to focus work and resources on achieving sustainable reductions in hunger and improving economic wellbeing with due regard for the earth s natural resources. Further discussion on the proposed Organizational Results will culminate in the Programme of Work and Budget for the next biennium. In the Human Resources area, which is an essential part of the IPA, we have advanced in the implementation of a performance evaluation system linked to the results framework. We have developed policies to encourage hiring younger staff and introduced flexible working arrangements. Action is also underway to reduce the number of our headquarters D-level posts. Also in line with the recommendations of the IEE, a Culture Change Team consisting of 15 staff from Headquarters and decentralized offices has been established. The team has interacted with close to 1,000 people in Headquarters and three regional offices and hosted activities in a sub-regional office and seven country offices. Based on this input, the team is drawing up an Internal Vision Statement and has developed a set of concrete proposals on Career Development and advancement for staff, rewards and recognition and fostering an inclusive work environment. 3

4 During the coming three years, FAO clearly has a very ambitious IPA implementation programme, which provides the opportunity to make the Organization better equipped to face the challenges of feeding a growing population subjected to food crises and climate change. Pension and Medical Insurance Let me now briefly turn to some of the social security issues that might be of interest to you. In the course of the meeting, Mr Cochemé, the Chief Executive Officer of the UN Joint Staff Pension Fund will address pension fund matters followed by a Question-and-answer session on pensions and medical insurance issues with the participation of the Officers of the Social Security group. There is some good news for pensioners who reside in Italy and have chosen the local track. Their pensions will be revised upwards by 2.1% as of 1 April 2009 following the Consumer Price Index in Italy. The medical insurance scheme continues to grow in participants among active staff and retirees from FAO, IFAD, WFP and other UN Organizations in Rome. The plan provides a sound medical protection for its participants. The Joint Advisory Committee on Medical Coverage continues to closely monitor the plan to ensure that it maintains a satisfactory standard. The FFOA representatives are participating actively in the work of the Joint Advisory Committee and have been providing pragmatic suggestions in the interest of the pensioners as well as of the Organization. Shortly you will receive an announcement from Social Security concerning the medical insurance premium rates for the year 2009, which under the euro scheme have only slightly increased. Chairperson, Ladies and Gentlemen, FFOA acts as FAO s partner in providing valuable information and assistance to you. Over the years, the collaboration between FFOA and the Organization has increased and we would like to assure the Association that FAO will continue to cooperate and support FFOA for the benefit of the retiree community. In conclusion, I would like to thank you all for the contributions you have made during your years of service with the Organization and for your continued interest and support. I wish you all a successful and productive meeting. Thank you for your attention. 7. Reply by the President of the General Assembly Mr Harcharik thanked Mr Nelson for his speech, particularly interesting about the changes that were taking place in FAO, and the huge amount of involvement by the governing bodies and the staff. He expressed the best wishes of FFOA for the changes and for continuing success in improving the operations of FAO. He also thanked the Organisation for its various assistance to FFOA during the year, especially with setting up its website. He was sure that FFOA will continue to reciprocate as for example when its members assisted with the special high level meeting in Address by the Representative of the Executive Director of the World Food Programme Ms Diana Serrano, Director of the Human Resources Division, WFP, made the following statement: Good morning it is indeed a pleasure to be here today. Josette Sheeran, the WFP Executive Director, sends you her sincere regrets for not being able to join you this morning. For those of you who retired from WFP I bring you very warm greeting from your WFP family. This meeting is a great opportunity to share with you news about the good work your former colleagues at WFP are doing in some of the world s most challenging environments - in places like Afghanistan, Pakistan, Sri Lanka, Somalia, Sudan, Chad, DRC and Haiti just to name a few. In the time we have together it would be impossible to detail everything that is going on in WFP at the present time. However, I would like to highlight just a few new developments at WFP since your meeting last year, as well as tell you about some of the opportunities and challenges facing our staff and the organization today and in the months to come. Last year, WFP delivered vital assistance to the world s hungriest and most vulnerable people, reaching more than 100 million people with food assistance in some 78 countries. To do this, we had to raise a record amount of funds, over $5 billion dollars for 2008, to meet increased demands due to new unexpected emergencies and the global food, fuel, and financial crises. To meet the demands placed on us in 2008 our Executive Board approved WFP s new Strategic Plan reinforcing the innovative tools and approaches needed to meet the challenges and changing dynamics on the 4

5 frontlines. For example, this year in Burkina Faso we launched our first food voucher operation in Africa, deploying a new tool to address hunger in an urban environment, where food is available but beyond the reach of many because of the impact of high food prices. Last year we saw various changes in the WFP senior leadership due to the departure or retirement of some of the senior management team. As you are probably aware, our DED and Chief Operating Officer, Susana Malcorra, was named by the Secretary-General to become the Under Secretary-General in charge of the Department of Field Support at UN Headquarters in New York. This year John Powell retired as DED after years of distinguished service with WFP and the UN. In addition to Deputy Executive Director Shelia Sisulu, who is now coordinating our work on Hunger Solutions, three new Deputy Executive Directors have been named: Amir Abdulla, DED and Chief Operating Officer from Sudan, Gina Casar, DED and Chief Financial Officer from México and, joining us in July, Staffan de Mistura, DED for External Relations, from Sweden and Italy. I am also very pleased to announce that WFP was the first in the UN system to adopt the new international public sector accounting standards (IPSAS). By all accounts this is a great achievement and staff are to be congratulated for this accomplishment. This major UN reform is an improvement that will lead to more efficient performance, thus strengthening confidence, trust and credibility among the international community. This major UN reform is an improvement that will lead to more efficient performance, thus strengthening confidence, trust and credibility among the international community. This year as well WFP is also upgrading its corporate information management system and will be rolling out this new system -- known as WINGS II -- this July. This has also been a major project that has required enormous effort. For WFP, staff safety and security remain critically important issues. As you know, WFP staff, along with all other humanitarian workers, face increasingly serious threats to their safety in many parts of the world. In 2008, four WFP staff members lost their lives in the line of duty as a result of malicious acts. Locally recruited personnel remain most vulnerable in conflict and post-conflict areas. In 2008 alone: 7 drivers of WFP-contracted trucks were shot and killed in banditry attacks in Sudan; 5 employees of contracted transport companies were killed in banditry attacks in Somalia and one lost his life in the Philippines; 2 staff members of WFP Implementing Partners were killed last year while providing services to WFP, one in Somalia and one in Sudan; during 2009, two staff members have been killed in the line of duty as a result of malicious acts in Somalia; moreover, 4 WFP contractors were killed in 2009: one in Gaza; two in Afghanistan and another in an apparent robbery in Sudan. We mourn their loss and pay tribute to their efforts on behalf of the hungry poor. WFP is leading the UN s working group to review security, and is also leading the discussion on service in hardship duty stations throughout the entire system. The security and safety of all our staff remains a top priority of our Executive Director and the Programme. Let me now very briefly highlight where we are headed in the coming months in order to meet some of the opportunities and challenges facing WFP and the world s hungry. As you know, the food crisis hit the world s poor people hardest, adding 115 million to those suffering from hunger and under-nutrition. As the WFP Executive Director has indicated we are not yet out of the woods. Now this year s global economic crisis threatens to push tens of millions more of the struggling poor into the ranks of the hungry poor, as unemployment rises, remittances dry up, and export dependent countries see a fall in global trade. Chronic malnutrition kills 6.5 million children a year and, in children under two the result is irreversible damage. Therefore, we must get the biggest bang for the money we spend. At WFP we are asking, not only is the cup full but what is in the cup? How can it be, for example, in this day and age when we know - absolutely know - what causes stunting and brain damage in children, that we still have epidemic proportions of stunting and severe malnutrition? So today WFP is transforming the way we do business, deploying ready-to-use foods such as locally produced baby food in India and date bars in Gaza. And our staff is working very hard to expand our reach, to ensure universal fortification of basic commodities. At WFP we are not slowing down because there is still much work to be done, and we are proud to partner with FAO, IFAD and other UN agencies to get the job done and to deliver assistance wherever and whenever it is needed most. Finally, let me close by saying a few words about our operations in Pakistan where there has been a massive displacement of people in the wake of recent fighting in the north. WFP is building its relief response around a system of humanitarian hubs and host communities. By the end of this month, WFP plans to assist some 1.6 million internally. As internally displaced persons (IDP) camps near Peshawar and elsewhere have rapidly become overcrowded WFP has taken steps, in cooperation with the Government and UNHCR, to promote alternative IDP 5

6 settlements in safe and protected areas. When IDPs arrive at the humanitarian hubs they can register for assistance, receive food, critically needed shelter and cooking utensils. Then they are directed into available shelter within the local or host communities. So far, 17 humanitarian hubs are in action and five more are being set up. I will end my remarks this morning here. Thank you for your invitation to join you today. And thank you, once again, for your many years of dedicated service to the UN. 9. Reply by the President of the General Assembly Mr Harcharik thanked Ms Serrano for the very informative speech. It is hard to follow all the work that is being done but it is abundantly evident that WFP are on the frontline despite security considerations and increasing difficulties. The work is becoming ever more complex particularly because of the growing numbers of people involved and in need of assistance, and thanks are due to all in WFP. In addition he expressed the Association s gratitude for all the support received by FFOA during the year and particularly the printing of documents. He hoped that this support would continue and also that FFOA will welcome many more new members from WFP. 10. Statement by the Representative of the Staff Bodies Mr David MacFarlane, Chairman of the Association of Professional Staff (APS), spoke on behalf of the Staff Representative Bodies. Thank you for this opportunity to address your annual assembly. It is an honour for me to speak to you for the first time, and also the last time as when APS s turn comes round again I ll be in your place. Soon I ll join FFOA myself. I hear so many times in FAO meetings that a country representative says they are for example from France and they speak on behalf of the European Union now I can say I am from APS but speak on behalf of UGSS and FSA. However, there will be a merger of the Field Staff and Headquarters professional associations this year to become the Association of Professionals. We will continue to work in areas that have an effect on you pensioners, especially medical coverage and the pension plan. Of course you have your own representatives on the groups that study these things and we will all keep working together for our common interests. I'd like to say a few words about the FAO reform. I know none of you is as close to what's going on as still serving staff members but I imagine you are nevertheless interested. After all you contributed a significant portion of your lives to this Organization. I know it has happened several times before. I can remember people telling me about the huge expansion of the field programme in the 1960s and then the violent contraction in the early 70s after the first oil crisis, and I myself have gone through, I think, two or three "reforms". I know it's easy to say this is just like all the others and that after it's finished the work will go on as it has done for decades. There is a possibility of that and I don't think I would say no to friendly bets on it. There are some differences this time that I can point to from my experience however. There seems to be a much stronger influence of the member country representatives. There is also a glimmer of hope in the much more frequent involvement of staff representatives in parts of the process. We have been asked to contribute and we have even sat down with representatives from the member countries to put forward staff concerns. Of course it remains to be seen whether our input will have made any difference. While all change is not growth just as all movement is not forward, I guess you have to be optimistic. One part of the reform that is new this time is something called Culture Change (also mentioned. by Mr Nelson). There is a special group of staff members from all over the world and all over headquarters who have been working together for months to come up with ideas to change FAO's culture for the better. This follows from the surveys of satisfaction or lack of it that was part of the independent evaluation. That study pointed to some serious problems with the way FAO works, not the technical side so much, but the way people interact, the way they treat each other, the way they feel about their work and about their managers and about others in a word, the culture. I'd like to close not in the usual way but by turning to you for your thoughts on this business of the FAO culture. To start this off and maybe to give you a few ideas, let me ask you a few questions this is not a test: Do you think you had a rewarding career in FAO? Was FAO a nice place to work when you were here? What was the best thing about Do working for FAO? If you had it to do over again, would you work for FAO? I ll sit down now and leave the floor to you. Thank you very much. 6

7 Mr Harcharik thanked Mr MacFarlane and the staff representative bodies for their participation. The questions posed are interesting but this meeting is not the time and place to discuss them. They will provoke the thoughts of our members. The similar interests of serving and retired staff for some issues was appreciated. The reflections on reforms are interesting and he wished the staff representatives every success in achieving their goals. He thanked them for the cooperation and support to pensioners interests provided during the year. 11. Report of the Executive Committee (FFOA/GA/2008/05) The Statement of Work for 2008, which had been circulated with the documents, covering the period from June 2008 to 1 st March 2009 was brought up to date by Mr Doeve. He said that FFOA had to achieve many things and plans to report on them at meetings for pensioners. An important advance was the improvements to the FFOA Website which had been updated with the help of friends in FAO. Mr Pino Pace, the ex-director of IT Division, will demonstrate what it will be like. Mr Pino Pace provided a slide presentation on the Website Migration Project. The first task for the sub-committee was to design and deploy the first version of the Website Now seven years later we need to migrate to a new software environment, with new objectives. The original website back in 2003 had a slow take-off, and was labor intensive, while the use of the internet has generally increased since then. In November 2008 it was agreed to migrate to a new system; this was tested in May 2008 and the new version will be released for general use after the end of June The main new features include the following items: a) A new messaging system b) A discussion forum moderated for different subjects c) A multimedia library for example to retrieve various events, such as retirement seminars, and be available to people worldwide. d) A new search facility, to retrieve information on members and facilitate getting in touch with them. e) Improved updating of all data. f) Improved data coverage. g) Integration with the FFOA database for instance to alert members who have not paid their subscription yet! By the end of June there should be full access and the log-in procedure will remain the same as before. We hope to meet you on the Website! The report of the Executive Committee was then adopted under resolution FFOA/GA/2009/06/B. 12. Report of the Association s Finances (FFOA/GA/2007/06) Mr. Gianni Monciotti, Treasurer of the Association, presented the Financial Report for FFOA opened the year 2008 with two positive balances in euro and in dollars and we have continued this trend even though the number of new enrolments and renewals has had a slight contraction compared to We note an increase under item services and mainly at the item other income ; the contribution of US$3,000 from the FAO Welfare Fund has been restored and we hope that will continue in Furthermore we have received a contribution of US$1,500 from UNFCU on the occasion of the FAFICS meeting held in Rome last July and hosted by IFAD. The result is that at the end of 2008 our balances were 35,800 and US$ 7,250. We also believe that from the point of view of expenses the result has been positive. The reduction in expenses has helped, for instance the hosting of the FAFICS Council meeting by IFAD and the generosity of our sister agency the WFP in absorbing the expenses related to printing our documents and Newsbriefs. Taking advantage of the positive balance we have opened a reserve account at the Banca Popolare di Sondrio in order to show how we take care of the deposits made in advance by our Life Members. The second document in our patrimonial situation, with all our debit and credit balances and our investments which, unfortunately, in the case of FINECO shows a dramatic reduction in the market value if compared to 2007, going from 37,503 to the actual 29,767, though our financial adviser informs us that during the last month the situation has definitely improved. Our proposed budget for 2010 follows closely the one for 2009 and gives us hope to achieve our targets. 7

8 The above-mentioned accounts have been examined and certified correct by our auditors and I conclude by asking this Assembly to reconfirm Messrs David MacFarlane and Ugo Marchetti as Auditors for our 2009 accounts. Thank you. Mr Harcharik thanked the treasurer and, as there were no statements or questions for clarification, the Assembly approved by acclamation the financial report for 2008, the financial status on 31 December 2008, the proposed budget for 2009, and the reappointment of the auditors for our 2009 accounts, Mr. David MacFarlane and Mr. Ugo Marchetti, under resolutions C, D and E of document FFOA/GA/2009/ Question-and-answer session on subjects concerning pensions and medical insurance Mr Harcharik welcomed Mr Bernard Cochemé, CEO of the UN Pension Fund, and his colleagues Mr Frank DeTurris, the new Chief of the Fund s Operations, and Mr Alan Blythe, Chief of the Fund s Geneva Office. Mr Cochemé thanked FFOA for the opportunity to address the pensioners and to answer some of their questions. He then gave an illustrated talk screen under the main headings of the Fund s operations, its investments and financial status, and the long term future. Only some principal points are mentioned here. At the end of 2008 the Fund numbered 112,000 participants (staff members) an increase from 108,000 in December 2007, which was rather more than expected. Beneficiaries numbered 59,945, an increase of 3.2 per cent from So the fund is working for 172,000 people in total. Investments on 30 th April 2009 were US$32.6 billion, which is above December 2008 but lower than the US$41 billion in The proportion invested in equities was reduced from 60.3 to 51.9 percent. Although the decline in value of the investments was negative over one year it was satisfactory over the five year accounting period used by the Fund. Over the 49 years of the Funds activities the average return was 7.9 per cent as analyzed or 3.6 per cent when adjusted for the consumer price index. The long-term target is 3.5 per cent so the return is satisfactory. The difference between the contributions (US$1840 millions) and the payments out is only US$39 million and is easily covered by interest and dividends on the investments. A bigger gap was anticipated but there were more participants than expected and so in the short term contributions are still matching benefits. There has been no need to sell equities to cover costs so the losses mentioned are financial but the holdings are not reduced. In the long term there is an inevitable actuarial evolution as benefits increase, partly because of the (welcome) increase in longevity which has necessitated the introduction of new mortality tables, but the calculations have remained in surplus. The audits carried out refer to 5-10 years down the road. The Committee of Actuaries meets regularly and the investments are regularly reviewed and managed. The UN Pension Board will be meeting on 13 th - 17 th July 2009, with the participation of pensioner s representatives, and will consider all such issues. The activities of the Fund are described in the latest Annual Letter sent to all beneficiaries and on the Fund Website, and in some specialized booklets available on the Website or in hard copy by request. Mr Harcharik thanked Mr Cochemé for his very interesting presentation, and looked forward to answers to questions from the floor. He then invited Mr Nabil Gangi, Chief of the Social Security Division, to speak on Medical Insurance matters. Mr Gangi said that he would be brief to leave more time for questions. Pensioners had received the Administrative Circular on payments to the Medical Insurance schemes, detailing increases for 2009 of 2 per cent on the scheme in Italian currency and 11 per cent on the dollar-based scheme. The latter increase is partly caused by people contributing in dollars and receiving payment in euro, and this option has now been abolished for new retirees. The numbers involved are now: FAO: 3,594 staff and pensioners and 13,374 including dependents; WFP: 1,691 and 6,704; IFAD: 474 and 829; others 46. Claims dealt with now come to US$60 million a year. Cost containment is very important. The Insurance Company contracts have reduced payments by 29 and 18 per cent and the Administrative Claims handling has been reduced by 5 per cent. Several changes have been made to payments, including some thresholds as agreed by the JAC/MC. Some caps on premiums will be altered increasing the period of service from 18 to 25 years to avoid the anomaly in future of pensioners who worked fewer years being privileged. Claims are being aligned with premiums so that all pensions in euro will be reimbursed in euro. Travel provisions have been updated for treatment to be had 8

9 abroad if that provided a saving. Management of individual cases also helps. A saving of some 3.5 million was achieved in Everyone must try to keep claims down and Mr Gangi will be happy to assist anyone who needs advice on doctors or medical treatment in Rome. Mr Harcharik thanked Mr Gangi for his short but significant explanations. He then invited questions from the floor on pension or medical insurance matters of general rather than personal interest. Ms Gerda Sperl asked why the cost-of-living adjustments were made in April rather than January since the relevant index is for December. Mr Cochemé replied that the Fund must use the official statistics published in the UN Bulletin of Statistics, and they are often late in arriving. There are a very large number of local tracks to be calculated. Payments are backdated when necessary and in fact there is no significant loss. Mr Maurice Purnell said that a new Internal Appeals Legal System for the UN in New York is being introduced in July 2009 and asked whether the UNJSPF regulations for appeals against unwise or unjust decisions by the Pension Fund or Board could be updated to bring them more into line with the new UN system and permit class actions. Mr Cochemé said there were two different issues in the new legal system, one was the change to the rules and the other the design of the system on which working groups have been busy for several years. Appeals will still be for individual cases. A new Disputes Tribunal is being set up and its operations would be followed. Mr Purnell said that this did not answer the question about reform of the UNJSPF regulations, but that could be better discussed afterwards. Later Mr Cochemé said that it would not be easy to have the regulations changed but he would ask the Legal Adviser to the Fund to examine the matter. Mr Ismat Fahmi asked whether the 10 per cent tax included on medical bills by many physicians in Italy can be paid. Mr Gangi repeated that the option to claim in euro while premiums are paid in dollars would not be allowed to new retirees whereas retirees prior to 2007 may continue as previously. The francobollo charge of 1.81 is levied by the provider and must be on the invoice to claim, He was looking into the Province of Lazio tax charge. Mr Reto Florin asked whether to help cost-containment the medical services provided to staff and dependents could also be provided to pensioners. Mr Gangi replied that benefits are the same for staff and retirees. Some medical services are related to work or working conditions. If any are useful for pensioners and would save costs they can be discussed with the medical service to see if some could be provided. Mr Dario Sanvincente asked about developments in the proposal to have private investment management companies manage the capital of the Pension Fund, and how the recent crash in stock exchange values had affected the Fund. Mr Cochemé said that none of the proposed changes in investment management had been introduced. He explained that drop in value and loss are different the Fund has not needed to sell investments to cover costs and we have seen an increase in value in recent months. Any single value is not important, for instance for actuarial purposes the value of the Fund s investments was seven billion dollars below the peak figure of 42 billion dollars, so the Fund is able to weather difficult conditions. Mr Sarantis Andricopoulos asked a) what was being done because increasing charges for medical treatment are less than the limits set by the insurance schemes; b) UN pensioners are not allowed to belong to the local medical insurance services and have the carta sanitaria but can this be changed; c) some pensioners are getting really old, and is this change in the demographic structure being dealt with, for example by raising the age of retirement. Mr Gangi answered that the JAC/MC reviews the limits and compares them with other insurance plans, and ensures that we have comparable figures. But there are problems, for example dentists have standard costs in London but not in Italy, and the plans should not pay more for one claimant than another. A list of standard costs is available. The Vanbreda representative is in FAO most days and can discuss costs and lists of providers. Regarding the carta sanitaria it seems no two authorities give the same answer, some pensioners, including Italians, have been refused while others have obtained it and can thus save money. FAO can do little about this as it is not an issue for serving staff. Mr Cochemé agreed that demographic changes are important and increased longevity creates problems because of increased costs. The Fund has introduced a new actuarial valuation with updated mortality tables which gives a clear preview. There is no need to change the normal retirement age. The Fund cannot anyway raise the mandatory age of retirement, which must be decided by the UN, and the countries are divided about this, there are many issues to be considered. There is no real need to raise the age of retirement at present. 9

10 Mr Carlo Varrone asked whether the investment policies are being changed in view of the economic situation and the many changes occurring in social security systems. Mr DeTurris said that unlike most national systems this is a fully funded pension system with income from participants, employers and financial markets. The ratio of participants to beneficiaries is 1.9 to 1. The investment policy is constantly reviewed and changes are made as necessary. Over the years the Fund will address the changes taking place and assess the long-term funding requirements. While building tools to cope with changes, what is more important is the investment policy which is looked at regularly by the Investment Board on a quarterly basis. The second question concerning euro and dollar fluctuations seems to be an individual question and personal details would be needed to answer it. Mr Harcharik now regretfully drew the session to an end and thanked Mr Cochemé and his colleagues and Mr Gangi for their answers and thanked the members for their contributions and for the interest displayed. 14. Other Business No proposals had been received so Mr Harcharik handed over the meeting to the President of FFOA. Mr Doeve asked everyone to give generously to the traditional collection for the old and poor at the Old People s Home neighbouring FAO, which would be made by Ms Eileen Nolan and helpers at the end of the meeting outside the Green Room. (Contributions amounted to 1,542 which is about 200 more than last year). He announced that the annual social buffet lunch, after the Assembly, would be in the Indonesia Room and everyone could come without making reservations. Mr Doeve reminded everyone that this is the last year of the present Executive Committee and an election would be held in November Members are encouraged to stand for election by 1 st September, and urged to vote later in the year. He thanked FAO for the use of the room, the interpreters for their good work, and the volunteer photographer Mr A. A. Van Arkadie (son of FFOA member Mr Alex Van Arkadie). Mr Doeve also thanked Mr Harcharik for airing the General Assembly so well, and everyone present for coming and for contributing to the meeting. He hoped to see all those present on other occasions. 15. Closure of the Thirty-ninth Session of the General Assembly The President of FFOA closed the Assembly at 12:30 hours. 10 *************************************************** Please be sure to bring this document with you to the 40 th General Assembly in 2010