Hundred and Ninth Session
Rome, 9 - 13 May 2005
Decisions of the General Assembly on International Civil Service Commission and UN Joint Staff Pension Board (including Changes in Salary Scales and Allowances)
1. The purpose of this paper is to report on the decisions of the United Nations General Assembly (UNGA) at its 59th session (2004), which considered the annual reports of the International Civil Service Commission (ICSC) and of the United Nations Joint Staff Pension Board (UNJSPB) for 2004, and to inform the Committee on recent developments of the conditions of service of staff in the Professional and higher categories and General Service staff.
2. The General Assembly reaffirmed its commitment to a single unified United Nations common system as the cornerstone for the regulation and coordination of the conditions of service of the United Nations common system being convinced that the common system constitutes the best instrument to secure staff of the highest standard of efficiency, competence and integrity for the international civil service, as stipulated under the Charter of the United Nations. The UNGA also reaffirmed the statute of the Commission and the central role of the Commission and the General Assembly in the regulation and coordination of the United Nations common system.
3. Under a standing mandate from the General Assembly, the Commission continued to review the relationship between the net remuneration of the United Nations staff in the Professional and higher categories in New York and that of the United States federal civil service employees in comparable positions in Washington, D.C. (referred to as the margin). The Commission reported to the General Assembly the margin forecast of 110.3 between the net remuneration of the United Nations staff in grades P-1 to D-2 in New York and that of the United States federal civil service in Washington, D.C., for the period from 1 January to 31 December 2004.
4. The UNGA approved the recommendation of the ICSC that the current base/floor salary scale for the Professional and higher categories be increased by 1.88 per cent through the use of the standard method of consolidating post adjustment multiplier points, on a no-loss/no-gain basis, with effect from 1 January 2005. The financial implication of this change for FAO is estimated to be US$150 000 for the year 2005 in respect of mobility/hardship allowance and scale of separation payments.
5. In accordance with article 54 (b) of the regulation of the United Nations Joint Pension Fund the scale of pensionable remuneration for the Professional and higher categories is to be revised whenever the net remuneration in New York is adjusted. Effective 1 September 2004, the Chairman of the ICSC announced a 4.42 percent increase in the post adjustment in New York and, concurrently, promulgated a revised scale of pensionable remuneration for the Professional and higher categories increased by the same percentage and with effect from the same date. The financial implication of this change for FAO is estimated to be US$1.45 million for the year 2005.
6. The levels for the Rome post adjustment classification, showing the fluctuation of the post adjustment multiplier relative changes in the rate of exchange were announced by the ICSC from February 2004 to February 2005 as follows:
Post Adjustment (Applying 4-month waiting period)
|Jan. 2004||108.7||May 2004||0.844||135.2||35.2|
|Mar. 2004||109.2||July 2004||0.821||142.4||42.4|
|Apr. 2004||109.4||Aug. 2004||0.831||140.9||40.9|
|June 2004||109.9||Oct. 2004||0.812||143.8||43.8|
|July 2004||109.9||Nov. 2004||0.786||148.1||48.1|
|Aug. 2004||110.0||Dec. 2004||0.754||153.7||53.7|
|Sep. 2004||110.2||Jan. 2005||0.737||154.0||54.0|
|Oct. 2004||110.0||Feb. 2005||0.765||148.9||48.9|
7. In line with the procedure for interim adjustments established by the ICSC and approved by the Council2, an across-the-board 2.39 per cent net increase in salaries of the General Service staff came into effect on 1 November 2004.
8. The annual pensionable remuneration was revised by the same percentage increase applied to the net salaries (1 to 1 interim adjustment procedure) and with effect from the same date.
9. The annual net amount of the children’s allowance was revised from € 1 052.40 to € 1 078.00.
10. The annual amounts of the first and second language allowances were revised by the same 2.39 per cent increase as that applied to the net salaries and with effect from the same date, 1 November 2004.
11. The financial implication of these changes for FAO is estimated to be US$2.1 million for the year 2005 at the current rate of exchange.
12. The UNGA approved the recommendation of the ICSC to:
13. The financial implication of these changes for FAO is estimated to be US$150 000 for 2005.
14. Within the framework for the review of the pay and benefits system (and in particular, on broadbanding/pay-for-performance), the International Civil Service Commission decided that a pilot study should be conducted of one broadbanded structure model which consists of P-1 and P-2 in band 1, P-3, P-4 and P-5 in band 2 and D-1 and D-2 in band 3. The following three models will be used to test the related pay-for-performance systems and other initiatives, recognizing the different stages of reforms of the organizations.
15. The UNGA took note of the information provided by the International Civil Service Commission (ICSC) on the pilot study on broad banding and pay for performance.
16. The UNGA also noted that if all three models of the pay and performance system were not tested, this could diminish the value of the pilot study and requested the Commission to keep this in mind in its further consideration of the issue.
17. The UNGA recognized that an effective and credible performance appraisal system is the key for the possible introduction of a pay-for-performance system, and requested the Commission to ensure that the performance appraisal systems in volunteer organizations are developed, in full consultation with staff members, and clear, effective and credible for all parties concerned, including Member States. The UNGA decided that no new strategy on pilot projects in broad banding or pay for performance should be undertaken until the General Assembly has had an opportunity to review the results of the pilot study on broad banding and pay for performance being conducted by the Commission.
18. The Commission noted that significant progress had been made in categorizing contract across organizations. It decided to:
19. The Commission decided to:
20. The United Nations Joint Staff Pension Board (UNJSPB) held its 52nd session in July 2004 in Montreal, Canada. The major items dealt with by the Board were:
21. Other matters considered by the Board were related to:
22. Among the recommendations and decisions taken by the Board at its fifty-second session which were presented and subsequently approved by the General Assembly are:
23. The Standing Committee of the Board will hold its 188th meeting in July 2005 in New York. At this meeting, the items on which the Committee will be reporting to the General Assembly relate to the revised budget estimates for the biennium 2004-2005 and the proposed budget for the biennium 2006-2007. The other standard items on the Standing Committee’s agenda include the financial statements of the Fund for the year ended 31 December 2004, valuation methodology and assumptions for the twenty-eight actuarial valuation of the Fund as of 31 December 2005, a report on the Fund's investment performance,and the membership of the Investments Committee. The Board has also requested the Standing Committee’s consideration of certain policy items, namely:
24. In addition, there will likely be some review and appeal cases, the consideration of which are the responsibility of the Standing Committee under the Fund's Administrative Rules.
1 Index of cost-of-living for international officials in Rome. Please note that the index has been re-based effective 1 October 2000, date of the last cost-of-living survey
2 CL 82/REP, para. 186.187; CL 86/REP, para. 160(b)