Pension FundThis section gives an overview of the various pension benefits and the paperwork you need to submit before you retire.
Retiring staff should also explore the Pension Fund's website for more detailed information about the options available. It is also strongly advised to contact the Pension Fund with questions by email or phone. If you are based in Geneva or New York you may also seek an individual consultation at the Pension Fund offices.
Website: http://www.unjspf.org
Please note that individual entitlements are dependent on one’s contractual status, duty station, duration of service and category. Staff should contact their human resources focal points about specific situations and entitlements.
Your Pension eligibility and options depend on a number of factors including your age at retirement, the number of years of contributory service (CS) to the Pension Fund, and your year of entry into the Fund.
*Early retirement ages:
*Normal Retirement ages:
Early Retirement Benefit
Your age + the year you joined the organization are important factors in determining your eligibility for pension benefits 1. Normal Retirement Age (NRA) You retire at:
2. Early Retirement Age You retire at:
3. Deferred Retirement Age
Withdrawal Settlement
If you have fewer than 5 years of contributory service, you have one option: a withdrawal settlement.
You may also take a withdrawal settlement if you have MORE than 5 years of contributory service.
Normal Retirement Benefit
To elect the Normal Retirement Age Benefit:
For more information, read the Separation Booklet. Deferred Retirement Benefit
HOW MUCH IS THE BENEFIT?
Note: For new entrants or re-entrants in the Fund on or after 01 January 2014, new reduction factors apply. Please refer to the fund's website for more detailed information. For more information, see the Separation Booklet and the Early Retirement Benefit Rules and Regulations. Lump sum option
… is a periodic benefit that is payable for life, monthly in arrears, reduced on account of age if paid earlier than Normal Retirement Age (NRA). The extent of the reduction depends on your age at the time of separation and the length of contributory service (CS). You are entitled to elect a Deferred Retirement Benefit once you have vested your pension rights (5 years or more of CS) at any age under NRA (even if younger than age 55 or 58). You must have reached at least ‘early retirement age’ (55 or 58) for the benefit to come into payment; i.e. choosing this benefit means you decided to leave your monies with the Fund until you reach NRA or at least age 55 or 58. The full deferred benefit would be payable only at NRA. Payment at any date between age 55/58 and NRA would be reduced in the same manner as an Early Retirement Benefit. YOU decide at which date/age you want the benefit to come into payment, i.e. which reduction factor is applicable. The Deferred Retirement Benefit carries prospective surviving spouse’s rights, however … … it NEVER carries an entitlement to a child’s benefit! The Deferred Retirement Benefit does NOT allow for its partial commutation into a lump sum. * Do not confound this benefit with the option to defer your benefit election or payment under Article 32! For more information, see the Separation Booklet and the Deferred Retirement Benefit Rules and Regulations. Child's Benefit
… is payable to each child of a participant who died in service or of a beneficiary (during his/her lifetime) entitled to a retirement, early retirement or disability benefit who died while the child remains UNDER AGE 21. Such benefit is also payable to any child OVER age 21 and found by the Fund’s Staff Pension Committee (SPC) to be incapacitated by illness or injury for substantial gainful employment. How much is a child’s benefit? The benefit is derived from the benefit payable to the beneficiary. The annual amount is 1/3 of the beneficiary’s benefit, subject to a minimum amount of ~ US$ 1,673 per year and to a maximum amount of ~ US$ 3,329 per year (as of April 2012). For more information, see the Survivor's Benefit Booklet and the Child's Benefit Rules and Regulations. Widow's / Widower's Benefit
SURVIVING SPOUSE'S BENEFIT … is a periodic benefit payable to your surviving spouse for life if: You died while still in service, provided your spouse was married to you at the date of your death; or You died after separation from service and while receiving a periodic retirement benefit from the Fund, provided your spouse was married to you at the date of your separation and remained married to you until your death. How much is a surviving spouse’s benefit? The benefit will be half the full benefit to which you were entitled regardless of whether or not you opted to commute part of the benefit into a lump sum. For more information:
Divorced Surviving Spouse's Benefit
… is a periodic benefit payable to your divorced surviving spouse for life if s/he meets the requirements set forth in Article 35bis(b):
How much is a divorced surviving spouse’s benefit? If there is one (or more) surviving spouse(s) entitled to a widow/er’s benefit, the survivor’s benefit is divided between the surviving spouse(s) and the former spouse(s) in proportion to the duration of their marriages to the participant/retiree. If there is no widow/er entitled to a survivor’s benefit, the ex-spouse’s benefit is equivalent to ½ of the full benefit payable to you during your lifetime. For more information, see the Divorced Booklet. Spouse's Married After Separation Benefit
(SPOUSES WHO MARRY AFTER SEPARATION FROM THE ORGANIZATION) As from 1 April 1999, a former participant receiving a pension may elect to purchase a spouse's annuity, through a reduction of his/her periodic benefit, subject to certain limitations to protect both the Fund and the participant.
For more information, see the Survivor's Benefit Booklet. Secondary Dependent Benefit
A secondary dependent = mother or father or brother or sister. (ONLY one of them!)
Subject to the following conditions:
For more information, see the Survivor's Benefit Booklet.
Residual Settlement
When is a residual benefit payable?
How much is a Residual Settlement? A Residual Settlement is the amount of your own contributions, with interest, minus any payments which have been made to you and/or your survivors. To whom is the residual benefit payable? The Residual Settlement will be paid to any person(s) or institution(s) designated by you on the Fund's “Designation of Recipient of a Residual Settlement" form PENS.A/2 in accordance with percentage (if any) set by you. If no original and duly completed residual settlement form is available, the Residual Settlement becomes payable to the estate. Contributions plus interest - Total benefits paid = Residual settlement For more information, see the Survivor's Benefit Booklet. Pension Adjustment System
What is the purpose of the Pension Adjustment System? To protect the purchasing power of a periodic benefit from inflation and, where applicable, to mitigate currency fluctuations. Which benefits are adjusted? The Pension Adjustment System applies to all periodic benefits. However, no adjustments are made to a deferred retirement benefit until the beneficiary reaches 55 years (age 50 for those who separated before 31 December 1989). How frequently are benefits adjusted? Benefits are adjusted annually, on 1 April, provided the relevant consumer price index has moved by 2% since the date of the last adjustment. If the movement has been less than 2%, the amounts are not adjusted until the following 1 April provided the 2% threshold is attained by then. However, if the consumer price index has moved by 10% or more since the date of the last adjustment, benefits are adjusted semi-annually - on 1 April and 1 October. The very first adjustment will be reduced by 0.5 percentage points. This was part of an economy measure initially adopted in 1984. Two-track System
What is the two-track system? The two-track system is an optional part of the Pension Adjustment System whereby your pension can be calculated and maintained both in US Dollars and in the currency of the country where you actually reside. (a) US dollar record: All pensions are calculated initially in US Dollars which are then adjusted by the movement of the United States Consumer Price Index (US-CPI); (b) Local currency track: If you declare a country other than the US as your country of residence and provide acceptable proof, the Fund would establish your local currency track pension based on the country where you reside. The local track is established by applying the 36-months average exchange rate to the US$ track entitlement, which is then adjusted by the movement of the CPI of the country of residence (local CPI). In certain high-cost countries, a cost of living differential factor may be applied which could increase the local track amount significantly. How does the two-track system work? Every quarter, the local currency equivalent of your Dollar track (derived using the quarterly rate) is compared to the local track amount and you are generally entitled to the higher of the two, subject to maximum and minimum amounts. Note: If opting for the two-track, one point to keep in mind is the cap provision (i.e., paragraph 23 of the PAS). In effect, if the US Dollar appreciates substantially after your retirement, you may not get the full benefit of that appreciation. What should I do if I am retiring in a high-cost country other than the U.S. and I might want to go on the local track? You should: (a) Familiarize yourself with the “two-track” booklet on the web. (b) After you have retired, come to the UNJSPF for advice or run an estimate of your local track benefit from the web. Remember …
For more information, see the Two-track Booklet.
If you wish to apply for a child's benefit for your daughter/son, it is recommended that you do so at least 6 months before your own separation. You would have to submit a detailed up-to-date medical report from her/his treating physician to the Chief Medical Officer, Medical Service. It must be established that the child is unmarried and incapable of substantial gainful employment. The Medical Service would then submit a recommendation to the UNJSPF Staff Pension Committee at New York Headquarters which decides on child disability cases. The Staff Pension Committee currently meets only twice a year, once in spring and once in autumn. ► Step 4: Fill out pension fund form and submit required documents (1 month before retirement date))
Mandatory Separation Documents:
Processing Timeline:
Submit Change of Mailing Address Form to: NEW YORK (Headquarters) OFFICE AT GENEVA If your bank payment instructions change after retirement, complete the Change in Payment Instructions Form and submit it to: NEW YORK (Headquarters) OFFICE AT GENEVA
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