PRE-RETIREMENT TOOLKIT

Introduction

Separation Procedures

Repatriation Shipment

Pension Fund

Insurance

Taxation

Immigration

Local Support

Pension Fund

This section gives an overview of the various pension benefits and the paperwork you need to submit before you retire.
 


Introduction

 


Separation Procedures

 

Repatriation Shipment

 


Pension Fund

 



Insurance


Taxation


Immigration


Local Support (AFICS)

 

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.
 

NEW YORK (Headquarters) 
Tel: (212) 963-6931
Fax: (212) 963-3146 
E-mail: UNJSPF@UN.ORG

OFFICE AT GENEVA 
Tel: +41 (0) 22 928-8800
Fax: +41 (0) 22 928-9099 
E-mail: UNJSPF.GVA@UNJSPF.ORG 

 

Websitehttp://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.

  • If CS is less than 5 years at any age = Withdrawal Settlement
  • If CS is equal to or greater than 5 years AND age is less than 55/58 (depending when you joined the fund*)= Withdrawal Settlement OR Deferred retirement benefit
  • If CS is equal to or greater than 5 years AND age is between 55/58 and 60/62/65 (depending when you joined the fund*)= Withdrawal settlement OR Deferred retirement benefit OR Early retirement benefit
  • If CS is equal to or greater than 5 years AND age is equal to or greater than 60/62/65 (depending when you joined the fund) = Normal Retirement Benefit
  • Any CS, any age: Disability benefit (if applicable)

*Early retirement ages:

  • 55 or older but less than 60/62/65, depending on your date of entry into the Fund
  • 58 or older but less than 65 if your entry into the Fund was on or after 1 Jan 2014

*Normal Retirement ages:

  • 60 if your entry into the Fund was before 1 Jan 1990
  • 62 if your entry into the Fund was on or after 1 Jan 1990
  • 65 if your entry into the Fund was on or after 1 January 2014
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:

  • 60 if your entry into the Fund was before 1 Jan 1990
  • 62 if your entry into the Fund was on or after 1 Jan 1990
  • 65 if your entry into the Fund was on or after 1 January 2014

2. Early Retirement Age

     You retire at:

  • 55 or older but less than 60/62/65, depending on your date of entry into the Fund
  • 58 or older but less than 65 if your entry into the Fund was on or after 1 Jan 2014

3. Deferred Retirement Age

  • You  leave the Organization before 55 and decide to leave your money in the Pension Fund until 55 or your normal retirement age
Withdrawal Settlement

If you have fewer than 5 years of contributory service, you have one option: a withdrawal settlement.

  • it is a one-time payment that relinquishes all rights to a retirement benefit from the UNJSPF.
  • If you have fewer than five years of contributory service, you will receive only your contributions and compound interest.

You may also take a withdrawal settlement if you have MORE than 5 years of contributory service.

  • in this case, you will receive your contributions, compound interest and an accumulation rate will also affect your benefit.
Normal Retirement Benefit

To elect the Normal Retirement Age Benefit:

  • You must have vested your pension rights - you have 5 years or more of contributory service
  • You have reached Normal Retirement Age, i.e. 60, 62 or 65 (depending on your date of entry into the Fund)
  • The retirement benefit allows for a partial commutation into a lump sum of up to a maximum of 1/3 payable as a one-time cash payment at the time of separation. The balance would be payable as a reduced monthly pension for life
  • This benefit carries prospective surviving spouse's rights as well as a dependent child's benefit for each child under age 21, payable during your lifetime.

For more information, read the Separation Booklet.

Deferred Retirement Benefit
  • You must have vested your pension rights - you have 5 years or more of contributory service
  • You have reached at least age 55 or 58 (depending on your date of entry) on the date of separation but you have NOT reached your normal retirement age
  • The early retirement benefit carries prospective surviving spouse's rights as well as a child's benefit for each child under age 21 - payable as of your normal retirement age and until the child reaches age 21.

HOW MUCH IS THE BENEFIT?

  • Smaller than the normal benefit because it would commence sooner and would be paid over a longer period
  • The extent of the reduction depends on:
    •      Your age at the time of separation
    •      The length of your contributory service at time of retirement:
      • less than 25 years: 6% reduction per year
      • 25 to 30 years: 2-3% reduction
      • More than 30 years: 1% reduction
  • The lump sum option is available in the early retirement 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):

  • You were married to your former spouse for a continuous period of at least 10 years during which contributions were paid in your respect to the UNJSPF; 
  • The Divorce Settlement Agreement/Judgment does NOT expressly state that the former spouse renounced UNJSPF pension entitlements.
  • Your death must have occurred within 15 years of the date when divorce became final UNLESS at the time of death you were under a legal obligation to pay maintenance to your former spouse;
  • The former spouse must have reached age 40 – otherwise, payment will commence upon ex-spouse’s 40th birthday;

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.

  • Such election must be made within one year from the date of marriage;
  • The election shall become effective 18 months after the date of marriage;
  • The election, once effected, may NOT be revoked except by an explicit request in writing by the UNJSPF retiree in case of divorce or by death of the spouse. A final divorce decree issued by a competent national court must be provided. No payments will be refunded; such payments will not convey to the divorced spouse a benefit entitlement from UNJSPF either. 

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!)

  • If father or mother: benefit = widow(er)’s benefit
  • If brother or sister:  benefit = child’s benefit

Subject to the following conditions: 

  • no child or surviving spouse benefit is/was payable.
  • in the case of a brother or a sister, no deferred retirement benefit was payable.

For more information, see the Survivor's Benefit Booklet.

 

Residual Settlement

When is a residual benefit payable?

  • If you die in service or while receiving a benefit from the Fund, provided there is no monthly survivor's benefit payable by the Fund.  
  • It is a one-time payment made only if the total amount of benefits already paid to you and/or to your survivors was less than your own contributions.

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 …

  • You may choose to go on the local track at any time during your retirement but in order to have it applicable from the date of your retirement, you must apply within six months of your retirement.
  • You must supply a Certificate of Residency from your country of residence along with the PENS.E/10 – Declaration of country of residence form.
  • Once you choose the local track you cannot normally decide at a later stage that you wish to revert to the dollar track.
  • If you change your country of residence whilst on the local track you must inform the UNJSPF immediately.  

For more information, see the Two-track Booklet.

 

  • All UNJSPF Reference Documents are available on the Fund’s website at http://www.unjspf.org – REGISTER TO HAVE SECURE ACCESS TO SOME OF YOUR PERSONAL UNJSPF DOCUMENTS!
  • UNJSPF Regulations and Rules: the CEO’s Annual letter provides information about recent developments and changes in the Fund’s Regulations; normally published on the Fund’s website in the first quarter of the year for the previous year.
  • ANNUAL STATEMENT: an annual update on your participation status and contributions. Please check your Annual Statement every year to ensure all information in it is correct! If you note discrepancies, please report them to your HR Partner who will review and, if applicable, submit corrective PAs to the UNJSPF. Any changes in name and/or family status should also be reported. Normally the Annual Statement is published on the Fund’s website mid-May each year for the previous year.
  • BENEFIT ESTIMATE for Participants: you can run your own estimate, enter potential separation dates, as well as specific Lump Sum amounts. The estimates are based on your data on file with the Fund as reported to us by your employing organization/s.

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.

  • For those with 5 years or more of contributory service, submit your payment instructions form (Pens.E/7) to the Pension Fund through your HR Partner/Pension Focal Point.
  • Remember to provide complete banking instructions including bank identifier on the box provided.
  • If you do not have a bank account and could not open one, payment in the form of a cheque may be sent in c/o a UN Office.
  • Payment cannot be remitted to a mailing address nor can it be issued to a third party.
  • Submit copies of birth certificates and/or valid government-issued photo ID documents (e.g. passport) for yourself, your spouse and any unmarried children under age 21. Also submit marriage and divorce certificates if applicable.
  • Birth certificate, marriage and divorce certificates need to be translated into English or French when the original language is not English or French.
  • Submit to the Fund a duly completed, dated and signed ORIGINAL “Designation of Beneficiary” form PENS.A/2.
  • You may change your designation of beneficiary and submit a revised original form whenever you wish.
  • Please note: in case of a married person the beneficiary(ies) on the PENS.A/2 form should NOT be the spouse and children under 21 since in case of death, the recipient of a benefit under the Regulations of the Pension Fund is automatically the surviving spouse and unmarried child(ren) under the age of 21. Under Article 38 of the Regulations of the Pension Fund, a residual settlement is payable to any person(s) or institutions designated by you provided there is no surviving spouse, child or secondary dependent entitled to a benefit and is the amount of your own contributions minus any payments which may have been made to you or your survivors by the Pension Fund.

Mandatory Separation Documents:

  • Your Separation Personnel Action, and
  • The Original Separation Notification form PF4 (or finance clearance) for your case, which is issued by the Payroll office of your organization and must be signed by an authorized Finance Officer to be accepted by the Fund.

Processing Timeline:

  • The UNJSPF makes every effort to process benefits as soon as possible upon receipt of ALL required and duly completed documentation.
  • If there are delays, this is usually because:
    • The receipt by the Fund of the original Separation Notification PF4 is delayed. This is out of the Fund’s control.
    • No Payment Instructions were received OR the Payment Instructions received are incomplete or unacceptable.
    • The UNJSPF does not have complete and accurate personal data for you or your dependents such as date/s of birth, marital status, number of dependent children, etc. In that case we will have to follow up to obtain the required information.
    • Contribution discrepancies are noted during the review process in the Fund, which require verification and clarification with the former employing organization before processing can continue. The Fund must await satisfactory feedback from the organization. 
       

Submit Change of Mailing Address Form to:

NEW YORK (Headquarters)
c/o United Nations
P.O. Box 5036 NY, NY 10163-5036,
Tel: (212) 963-6931 Fax: (212) 963-3146
E-mail: UNJSPF@UN.ORG

OFFICE AT GENEVA
c/o PALAIS DES NATIONS
CH-1211, Geneva 10
Tel: +41 (0) 22 928-8800; Fax: +41 (0) 22 928-9099
E-mail: UNJSPF.GVA@UNJSPF.ORG

Web: http://www.unjspf.org
 

If your bank payment instructions change after retirement, complete the Change in Payment Instructions Form and submit it to:

NEW YORK (Headquarters) 
c/o United Nations 
P.O. Box 5036 NY, NY 10163-5036, 
Tel: (212) 963-6931 Fax: (212) 963-3146 
E-mail: UNJSPF@UN.ORG 

OFFICE AT GENEVA 
c/o PALAIS DES NATIONS 
CH-1211, Geneva 10 
Tel: +41 (0) 22 928-8800; Fax: +41 (0) 22 928-9099 
E-mail: UNJSPF.GVA@UNJSPF.ORG 

Web: http://www.unjspf.org
 

  • You must sign and complete the Certificate of Entitlement each year in order to continue receiving your pension benefit.

    For more information on the Certificate of Entitlement, visit the UNJSPF website.