IN-RETIREMENT PRESENTATION EURSA COPENHAGEN OCTOBER 2016

Transcription

1 IN-RETIREMENT PRESENTATION EURSA COPENHAGEN OCTOBER 2016

2 To share information with you about... Reminder/Refresher of what the Fund is Prospects Presentation Goals Main Part: Q&A with UN Retirees UNJSPF ONLINE SERVICES: IPAS MEMBER SELF-SERVICE CONTACTING GVA OFFICE VIA SKYPE 1

3 UNJSPF: The System 2

4 Nature of the Fund UNJSPF is a Defined Benefit (DB) scheme, namely one where: assets are pooled (if funded scheme) the benefit is a function of time served and final salary the employer bears the market risk. The Fund is a US Dollar Scheme Beneficiary s money will not run out. 3

5 UNJSPF: Active Participants total growth ( ) The number of Participants in the Fund has increased from 122,759 to 126,892 representing an increase of 3.4% from

6 UNJSPF: Beneficiaries Total Growth ( ) The number of benefits in award decreased from 72,367 to 71,474, a drop of 1.2%. 5

7 UNJSPF: Short-term Funding Status $2.256 Billion Contributions and $2.361 Billion Benefit Payments in During the year 2015, benefits were paid in 16 different currencies. The difference between Contributions and Benefit Payments for 2015 is approx. $105 Million (Source: 2015 PFB Report) 6

8 UNJSPF: Market value of assets The value of the Fund s assets decreased from $53.1 billion on 1 January 2015 to $52.4 billion on 31 December 2015, a decrease of $650.6 million or 1.3% (Source: PFB 2016 Report) 7

9 UNJSPF: Long Term Funding Status The 2015 valuation revealed a surplus, amounting to 0.16 per cent of pensionable remuneration. The 0.16 per cent, expressed another way, means that the theoretical contribution rate required to achieve balance as of 31 December 2015 was percent of pensionable remuneration, compared to the actual contribution rate of per cent. These results indicate the first surplus since (Source: PFD Report) 8

10 UNJSPF: Long Term Funding Status The funding ratios are comparisons of the current assets of the Fund with the value of the accrued benefits (liabilities) on the given valuation date and are calculated on a plan termination basis. With respect to its liabilities on 31 December 2015, the Fund was found to be in a soundly funded position, as it had been for the past thirteen valuations. The current funded ratio is percent. This meant that the Fund would have considerably more assets than needed to pay the benefits if no adjustments were made in pensions for changes in the cost of living. The Funded position decreased to percent when account 9 was taken of the current system of pension adjustments

11 Prospects Change in Normal Retirement Age to 65 for those who enter the Fund from 01 January 2014 The principal of the Fund s investment portfolio will not be utilized to cover the contributions/benefit gap until 2047 (in 33 years). Even in a catastrophic scenario if the real return on investments is only 2% the principal will not start to be utilized until 2037 (in 23 years). Integrated Pension Administration System (IPAS) and its Member Self Service continue to be improved. 10

12 A RENDEZ-VOUS WITH A PENSION FUND RETIREE 11

13 Topics Covered Monthly Payment of Pensions Currency of Payment Certificate of Entitlement (CE) Quarterly Notification Attestations Moving and Changing address Change of Bank or Account Number Survivor s Benefit Web Access: Member Self-Service (MSS) How to reach us 12

14 Monthly Payment of Pensions Q: When can I expect to receive my monthly pension? A: Our payments are made at the following value dates for the Fund: Cheques: 1st day of the month (01 November 2016) USD payments to USA: Last Business day of the month (31 October 2016) All other payments: The day before the last Business day of the month (28 October 2016) Some banks may credit your account at value date + 1 or 2 business days All non-monthly payments are made as a batch each Thursday (Returned payments, retroactive benefits after suspension, and retroactive benefits for survivor s benefits) 13

15 Currency of Payment Q: In which currency can I have my pension paid? A: Our monthly pensions are paid in the 15 following currencies in the country of your choice*: 1. US Dollar 2. Euro 3. Swiss Franc 4. Pound Sterling 5. Canadian Dollar 6. Australian Dollar 7. New Zealand Dollar 8. Singapore Dollar 9. Japanese Yen 10. Danish Krone 11. Norwegian Krone 12. Swedish Krona 13. Indian Rupee 14. Pakistani Rupee 15. CFA Franc *Related consequences to be discussed in changing of payment instructions 14

16 Certificate of Entitlement (CE) 15

17 Certificate of Entitlement (CE) New Cycle Q: I am a new retiree and would like to know when I should expect my Certificate of Entitlement (CE) A: If you have received less than six monthly payments by May, you will not receive a CE for the current year. Otherwise, the CE is sent at the end of May (2016) with a reminder in September(2016) for those who do not return the May CE. If none of CE is received by the Fund, and no other Original Document or is received by November 2016, the next pension will be suspended. Below the link for all information on the 2016 CE. ence&lang=eng Q: For me, I have just received the CE, but how do I fill it? A: You just need to date and sign at the indicated fields as shown 16 the following slides

18 RETIREMENT NUMBER NAME DATE YOUR CERTIFICATE OF ENTITLEMENT SIGN HERE TYPE OF BENEFIT AND COUNTRY OF RESIDENCE FOR TWO-TRACK DATE HERE

19 RETURNING YOUR CERTIFICATE OF ENTITLEMENT

20 Certificate of Entitlement (CE) Q: For me, I received the CE, but because of my age or medical condition, I cannot sign it, what should I do? A: You can affix your thumbprint at the indicated field and have it witnessed by a UN system Official, attending doctor or Local Government Authorities. The person witnessing the thumbprint must state his/her name, title and Official Seal in the indicated fields. For the first time the thumbprint is used instead of signature, a Medical Certificate should be enclosed to explain the condition preventing the retiree from signing. 19

21 RETIREMENT NUMBER NAME DATE Your Certificate of Entitlement (CE) DATE HERE TYPE OF BENEFIT AND COUNTRY FOR RESIDENCE FOR TWO-TRACK Name of witness Title of witness Signature and Official Seal of Witness Retiree s Thumbprint Here

22 Please read our new Legal Guardianship and estate booklet 21

23 Certificate of Entitlement (CE) Q: What to do if by mid-october, I do not receive neither the original CE (May) nor the Reminder (September)? A: If that happens, please write and send an Original Letter, with your signature to inform the Fund your non-receipt of the CE and confirm your mailing address in that letter. There is a review prior to the suspension, and your pension will not be suspended if we find the original letter in file. We will send you another CE to sign as the Original CE is still required. 22

24 Certificat de Droit à Prestation (CE) Q: What if for whatever reason, my pension is suspended due to your non-receipt of my CE. What should I do? A: Your payment will be reinstated retroactively once we receive a signed Original CE from you. The reinstatement process is a long process where the suspended payments will be reissued separately and we will re-establish the monthly payments. Important: After Service Health Insurance (ASHI) deductions will NOT be done when the payment is suspended! Extended period of suspension can lead to termination of ASHI due to missing premiums. Benefits will be forfeited if the suspension lasts 2 years or longer. 23

25 Quarterly Notification 24

26 DUE TO THE MOVE FROM LEGACY TO IPAS, NO QUARTERLY NOTIFICATION WAS GENERATED FOR OCTOBER 2015 AND JANUARY 2016 QUARTERS.. THE PAYMENT DETAILS FOR THESE QUARTERS ARE AVAILABLE IN YOUR MEMBER SELF SERVICE (MSS) JULY 2016 NOTIFICATIONS WILL BE SENT SOON 25

27 Quarterly Notifications Q: I receive a statement full of numbers from time to time. What is it? A: A notification is sent to retirees whenever there is a change in their gross pension amount (without the insurance (ASHI) deduction). If you are on the USD Track and your pension is paid in USD, the gross payable amount will not change unless there is cost of living adjustment in the USA. The last change and therefore your last statement is dated April

28 Your Notification : USD Track and payment in USD without ASHI NOM DATEZ ICI DATE TYPE DE PENSION

29 Your Notification : USD Track and payment in USD with ASHI

30 Quarterly Notifications Q: What if I am on the USD Track but choose to be paid in another currency? A: If you are on the USD Dollar Track but request to be paid in a currency other than US Dollar, your payable amount will change every quarter depending on the UN Quarterly Exchange Rate. You will receive a Quarterly Notification If your net payable amount changes within the quarter, it is usually due to a change in your After-Service Health Insurance Premium 29

31 Your Notification : USD Track and payment in another currency without ASHI NOM SIGNEZ ICI DATEZ ICI DATE TYPE DE PENSION

32 Your Notification : USD Track and payment in another currency with ASHI

33 Statements 32

34 Statements Q: How can justify my status of UN Retiree? A: We can provide you three types of attestations for this purpose: 1. Benefit Attestation with or without amount 2. Annual Attestation (Benefit Statement) showing that amounts paid during a fiscal year 3. Attestation of your period of contributory Service with or without the amount of your contributions and interest and the contributions from your employing organization. 33

35 Benefit Statement (Monthly benefit) We provide a monthly benefit statement (EN or FR) at the request (oral or written) of the retiree. It can be picked up at our offices or mailed to the address in our records. It s prepared with or without amount at the request of the retiree If it s requested with the amount, the stated amount is the current gross payable monthly amount (including children benefit) in the paid currency at the time of the attestation. It can include the payment destination (Bank name and account) at the request of the retiree, but we cannot state that the instruction is irrevocable. 34

36 Statement with or without amount (FR or EN) 35

37 Benefit Statement a.k.a Tax Statement (Annual) A benefit Statement indicating the payments of pensions dues during the fiscal year is sent at the request (oral or written) of the retiree to the address on our records. It is sent automatically thereafter at the end of January each year. All amounts paid during the fiscal year, including lump sum, retroactivity and adjustments, are mentioned. The amounts indicated are those of the currency paid. The amounts are gross, i.e. they do not take into account deductions for health insurance premiums. Beneficiaries should contact their insurance section for an attestation covering these deductions. The amount of a child benefit, if any, is given separately but cannot be omitted. All annual attestations are issued on the basis of the conditions enumerated above, without exceptions. 36

38 Tax Statement: How it looks outside 37

39 Tax Attestation: How it looks inside 38

40 Attestations of Contributory Service and Contributions The Fund can provide an attestation of contributory service at the request of the retirees (normally due to requests for National Pension Offices) The statement can also include the total contributions and interest from the retiree during his/her participation and the Organization s contributions for the same period. 39

41 Attestations of Contributory Service and Contributions 40

42 MOVING 41

43 Moving Q: I am changing my address. Should I inform the Fund? If yes, how? A : If you are changing your address, even in the same country, you need to inform the Fund by filling out our PF23M form and sending it to the Fund in Original by mail or diplomatic pouch. Documents received by (including PDF attachments), photocopies and faxes are not accepted. 42

44 CHANGE OF ADDRESS - Please fill the form for our website if possible before printing and signing in order to avoid misinterpretations of letters and numbers The completed form bearing ORIGINAL SIGNATURE must be submitted to the Fund: No faxes, photocopies or s will be accepted 43

45 Change of Payment Instructions 44

46 Change of Payment Instructions Q: I am changing my bank account, how do I inform the Fund? A: If you are changing your bank account, even in the same country, you need to inform the Fund by filling out our PF23 Change of payment instructions form and sending it to the Fund in Original by mail or diplomatic pouch. If your bank informs you that your bank codes (Sort Code or SWIFT) have changed, please inform the Fund through the same method. Documents received by (including PDF attachments), photocopies and faxes are not accepted. For changes in intermediary banks for cross-border payments, an with the name and SWIFT code of the new intermediary bank is acceptable. 45

47 Change of Payment Instructions - Timing Q: How long does it take the Fund to make the change? Q: It depends on when we receive the request. We close the payroll around the 10th of the months for the pensions due at the end of the month. (Example: Payroll closing on 10 October for payments due on 28 October 2016) So, instructions received after the 7th of the month are normally processed for the following month s payroll. Beneficiaries should NOT close their previous account until they receive a payment in the new bank account. 46

48 CHANGE IN PAYMENT INSTRUCTIONS Please fill the form for our website if possible before printing and signing in order to avoid misinterpretations of letters and numbers The completed form bearing ORIGINAL SIGNATURE must be submitted to the Fund: No faxes, photocopies or s will be accepted Please include a document from your bank showing your account details 47

49 PAYMENT INSTRUCTIONS We are working on new Payment Instructions Notification from IPAS It may take up to six weeks to implement the new instructions. Please don t close the old account without having received a payment in the new one. New Payment Instructions have to last at least a year In extraordinary circumstances, we can change the instructions prior to the expiration of the on year 48

50 Q: So what are the possible consequences for my choice of currency of payment? A: Your choice of currency has two possible consequences: Unlimited Payment fluctuations and Bank Charges To avoid unlimited payment fluctuations (up or down), the Track currency has to be the same as Payment Currency. Track Change of Payment Instructions Choice of Currency Payment Currency Consequences USD USD No payment fluctuation USD DKK Unlimited Quarterly Fluctuation USD-DKK USD EURO Unlimited Quarterly Fluctuation USD-EUR Local Denmark (DKK) DKK Limited payment fluctuation (between min-max) Local Denmark (DKK) USD Unlimited Quarterly Fluctuation DKK-USD Local Denmark(DKK) EUR Unlimited Quarterly Double fluctuation: DKK-USD, and USD-EUR 49

51 Change of Payment Instructions Choice of Currency Q: So what are the possible consequences for my choice of currency of payment? A: Your choice of currency has two possible consequences: Unlimited Payment fluctuations and Bank Charges The Fund pays a fee to send pensions, but does not absorb fees related to the receipt of pensions To avoid bank charges, the payment destination must be in the currency zone. Currency Destination Bank Charges (yes, no, possible) USD USA No USD Other countries Yes for most, with a few exceptions EURO SEPA Zone (32 countries) No EURO Outside SEPA Zone Yes for most, with a few exceptions DKK Denmark No DKK Outside Denmark YES Other Payroll currencies In their zones NO Other Payroll currencies Outside their zones YES 50

52 PENSION ADJUSTMENT SYSTEM Adjustment of Pensions due to Cost of Living Adjustments Two-Track 51

53 Pension Adjustment System: Basics Q: What is the Pension Adjustment System and why do you have it? A: The Pension Adjustment System (PAS) is a way of indexing pensions on the Consumer Price Index (CPI). It is designed to protect the purchasing power of a pension from inflation and where applicable from currency fluctuations. All periodic pensions are adjusted annually if the CPI has moved by at least 2% from last adjustment All pensions are calculated initially on the US Dollar Track. Beneficiaries have the option to add a second track called Local Track, that why it is called Two-Track. 52

54 Pension Adjustment System: Q: What is the benefit of the two-track? A: The Two-Track: Two-Track Provides stability of the pension amount in the currency of your country of residence (the fluctuation been limited between your local track amount and the maximum amount 120/110%) Maintains the purchasing power of pensions by indexing pensions based on Consumer Price Index in your Country of Residence. 53

55 Pension Adjustment System: How do I know the Track Q: How do I know if I am already on the two-track? A: Take a look at your notification, you will see that there are two columns: On your left the US Dollar Track and on your right the Local Track (2 nd track of the two-track). If the right column is empty, you are only on the US Dollar Track 54

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58 Two-Track: Is it good for me Q: Being on the USD Track, how do I know if the two-track is good for me? A: Please request an estimate from the Fund. Two-Track estimates will be available in Member Self Service (MSS) in the future. You will be able to run your estimate in MSS. For most cases currently in the US Dollar Track in Scandinavia, it is the best choice as the USD Track entitlement multiplied by the UN Quarterly Rate is higher than the Local Track at entitlement date increased by Cost of Living Adjustments. 57

59 Two-Track: How do I apply Q: How do I apply for the two-track? A: Please read the instructions on pages 1 to 4 and fill out page 5 of our PENS E/10 «Declaration of Country of Residence» Please enclose a document to show proof of residence in the country you are requesting the local track 58

60 PENS/E10 FORM Form to be signed when requesting the two-track for the first time and sent with a Certificate of Residence 59

61 Two-Track: Change of country of residence Q: I am on the two-track and I am changing my country of residence, what should I do? A: Once you opt for the two-track and change your country of residence, you need to inform the Fund within six months of your arrival to the new country. You must fill out and send our PENS E/11 «Change of Country of Residence» with proof of residence in the new country as well as proof of the date of arrival to the new country. Your pension will be then calculated under the local track of the new country with effective date the quarter following the receipt of the PENS E/11 form 60

62 PENS/E11 FORM To be filled out when changing country of residence while on the two-track Proof of arrival is required if the arrival date is not mentioned on the Certificate of Residence (Passport with Immigration stamp, Boarding Pass, Tickets etc.) 61

63 Two-Track: Return to the US Dollar Track Q: I am on the two-track, can I revert to the USD Track Only? A: You normally revert to the USD Track only when you change your country of residence to the USA or to another country where the local track is NOT applicable Exceptions are reviewed on a case to case basis. 62

64 Survivor s Benefits 63

65 Right to a pension Q: If I pass away, will my spouse have a right to a pension? A: A survivor s benefit is payable to surviving your spouse if you have the right to a monthly pension, and if the surviving spouse has been married to you prior to your separation from service and remained married to you until death. 64

66 Interpretation of Marriage by the Pension Board (2016 version): The Pension Board has extended the interpretation of marriage to unions/partnerships lawfully entered into and legally recognized by the competent authority of the location where the status was established as long as the union confers the similar legal effect as marriage, specifically including pension rights. 65

67 Q: Under which circumstances would my spouse not be entitled to a benefit? A: A widow/widower s benefit would not be payable if you have separated from service prior to 01 April 2001 and opted for a deferred retirement benefit with Lump Sum. Or Right to a Pension If the marriage was contracted after Separation from Service and that no annuity has been purchased under Article 35 ter. 66

68 Administrative Procedures Q: Upon death, what will the spouse need to do to establish the survivor s benefit? A - The Fund reviews the file to see what documents are already with the Fund, among the checklist below. All pension forms are needed in Original while the Fund accept copies of other documents. 67

69 Required Documents Copy of the retiree s Death Certificate Copy of the Marriage Certificate Copy of Spouse s Birth Certificate Proof of Divorce (if applicable) Copy of Official ID bearing Photograph and Signature (Passport or National ID card) Original PENS.E/2 68

70 PENS.E/2 Page 1 NEW FORM Please fill the form for our website if possible before printing and signing in order to avoid misinterpretations of letters and numbers The completed form bearing ORIGINAL SIGNATURE must be submitted to the Fund: No faxes, photocopies or s will be accepted Please include a document from your bank showing your account details Please check the right 69 box

71 PENS.E/2 Page FORM NEW Please fill the form for our website if possible before printing and signing in order to avoid misinterpretations of letters and numbers The completed form bearing ORIGINAL SIGNATURE must be submitted to the Fund: No faxes, photocopies or s will be accepted Please include a document from your bank showing your account details 70

72 Q: Who can witness my spouse signature? A: Witness of Signature 1. The UN Pension Fund if the spouse brings the documents to our offices. 2. Officials of the United Nations System 3. Local Government Authorities (City Hall), Consular Authorities 71

73 Q: How much will my spouse receive as widow s benefit? A: Amount In general, the amount equals half of the retiree s full pension (before any lump sum commutation) This amount is payable for life and is adjusted for cost of living adjustment. 72

74 Transition from Retiree to Survivor Q: If the date of death is in mid-month, do I have the right the full month s benefit? A: Yes, the retiree has the right to the full amount of the month of death. The spouse has the right of the pension on the first day of the month following the death. Q: How long would my spouse have to wait to receiving her survivor s pension after my death? A: If the Fund receives the required documents in good order, we establish the survivor s benefit within 4 to 6 weeks. The Fund is currently experiencing some delays in establishing survivor s benefits. A Task Force has been established to 73 analyze and process Survivor s Benefits.

75 Survivor s Benefit: Recommendation Q: What can I do to facilitate the establishment of my spouse pension after my death? A: Please establish a pension file for your spouse where you can pre-fill out the Pens. E/2 form. If you have a joint account and your bank agrees not to close it after your death, you can already fill the account number on Page 2 of the Pens. E/2 form. Keep the Pens. E/2 and a bank document in the Pension File. PLEASE DO NOT SEND THIS FORM RIGHT NOW Please send right now (but keep copy in the pension folder) to the Fund a copy of your marriage certificate, Birth Certificate for you and your spouse and a copy of your spouse Official ID (passport or ID card) 74

76 Internet Access 75

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79 In the unsecured part of our site, you will find important categories such as Forms, Publications and documents (where you can find the bookets), and UN exchange rates CPI and Contacting Us 78

80 Register (single account as participant and as retiree) 79

81 Register (single account as participant and as retiree) 80

82 Register (single account as participant and as retiree) 81

83 Register (single account as participant and as retiree) 82

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95 IPAS New features for Retires 94

96 IPAS NEW FEATURES FOR RETIREES Possibility to aggregate or Disaggregate two or more payments going to the same Payee Possibility to go Paperless Possibility for retirees with small pensions to receive scheduled arrears payments in nonmonthly intervals Possibility for retirees on the USD Track to print their Certificate of Entitlement Online (effective 2017 CE) 95

97 Possibility to aggregate or Disaggregate two or more payments going to the same Payee It is now possible for retirees with multiple retirement numbers to combine their payments as long as they are paid in the same currency to the same person with the same payment instructions It is also possible to remove one or more retirement numbers from the aggregated payments and have it or them paid separately It is possible to unite a child benefit with the main benefit after it has been separated (was impossible under PENSYS) 96

98 Possibility to go Paperless For those who do not wish to receive notifications by mail, they can use the Yes Paperless option in Member Self Service to stop mail notifications. For beneficiaries on the Two-Track, the Certificate of Entitlement (CE) will still be sent by mail as it also serves as proof of residence for the period. 97

99 Possibility for retirees with small pensions to receive scheduled arrears payments in non-monthly intervals Beneficiaries with small pensions ($400 or less) can choose to receive payments Quarterly, Semi-annually or Annually. Upon request, the payment will be scheduled at the end of the third month (3 payments), sixth month (6 payments) or twelfth month (12 payments) depending of the choice. Unlike before, the payment is released as part of the payroll payments and is made through local clearing systems to avoid bank charges for most cases. 98

100 Possibility for retirees on the USD Track to print their Certificate of Entitlement Online (2017) Beneficiaries on the US Dollar Track will receive a copy of their Certificate of Entitlement on their Member Self Service They will then print the CE, sign it and return it in Original The Original CE will still be mailed unless the beneficiary has selected the Yes Paperless option 99

101 SOME BOOKLETS THAT COULD BE OF INTEREST TO YOU 100

102 To Contact Us 101

103 How to contact us... P.O. Box 5036 New York, NY USA Tel: Fax: UNJSPF NY UNJSPF HQ Palais des Nations 1211 Geneva 10 Tel: Skype ID: unjspf.geneva Fax: Office: DuPont de Nemours Building Ch. du Pavillon 2, 1218 Grand-Saconnex Switzerland Open Hours: Monday-Friday 08:30 to 17:00 with or without Appointment UNJSPF GVA UNJSPF GVA Office

104 How to call us free with Skype Q: I heard you have Skype in Geneva, how can I use it to call you for free? R: Please install Then go to Add a Contact and add unjspf.geneva You will be accepted automatically and our ID is always online. Select the UNJSPF GVA contact and click on 103

105 How to call us free with Skype To be able to choose the option given on our phone system, please show the Dial Pad after having initiated the call, by clicking on Call and then Show Dial Pad 104

106 How to call us free with Skype After having clicked on Show Dial Pad, the Dial Pad becomes visible and you can select the option you wish to access on our phone system (for example 1 for beneficiary or 2 for participant) 105

107 OTHER QUESTIONS 106