PRE-RETIREMENT TOOLKIT

Introduction

Separation Procedures

Repatriation Shipment

Pension Fund

Insurance

Taxation

Immigration

Local Support

Taxation

Retiring staff should consult their local HR Office and a qualified tax professional for advice on taxation. You can also try contacting the local branch of the Association of Former International Civil Servants (AFICS). AFICS organizations are listed here.
 


Introduction
 
Separation Procedures
 
Repatriation Shipment
 


Pension Fund
 


Insurance

Taxation

Immigration

Local Support (AFICS)

 

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.

 

► Step 1: Consider how your income tax situation will change when you retire (2-4 months before retirement)

  • Consider contacting a lawyer or an accountant for advice, if necessary.
  • The Income Tax Unit will provide you with a tax statement, but be sure to check for accuracy of personal data.
     

Whether UNJSPF pension benefit is subject to tax depends on the TAX STATUS OF THE RECIPIENT.

  • US citizens and permanent residents are, without exception, subject to tax on all income from whatever source derived  
  • Pension benefits are not considered "earned income" for purposes of the foreign earned income exclusion
  • Non-residents (for US tax purposes) are not subject to tax on UNJSPF benefits since UNJSPF distributions are considered a non-US source of income

Be sure to inform your tax professional that the UNJSPF is a "qualified" employee pension plan under the Employee Retirement Income Security Act of 1974. This means that benefits are taxed like those of any other qualified plan, with the exception that benefits are treated as "non-US source income" such that those who are "non-US residents" at the time of the receipt of a benefit are not subject to US taxes.

US Department of Labor Information on Retirement Plans and ERISA

Taxing may differ depending on whether you've chosen a Periodic or Lump-sum Pension Distribution.

PERIODIC DISTRIBUTIONS:

  • No international agreement exempts you from taxation
  • National laws and bilateral treaties may exempt you, in whole or in part
  • Neither the UN nor the specialized agencies reimburse you for taxes imposed on Periodic Distributions LUMP-SUM DISTRIBUTIONS
  • The UN considers terminal emoluments exempt from taxation
  • For the US, lump-sum distributions may be partially taxable
  • For an international worker, a tax emolument is treated like a last paycheck, which cannot be taxed
  • For US citizens, individuals are not exempt and are subject to US tax rules

Publication 575, Pension and Annuity Income

If you are eligible for tax reimbursement from the Organization on lump-sum distributions, liaise with the Tax Unit of OPPBA

  • The UN will reimburse ex UN staff (even if transferred to other organizations) for tax imposed on lump-sum distributions if the staff member joined the service of the UN before 1 January 1983 and has served continuously since joining until retirement

General Assembly Resolution 34/165 Part III
 

Step 2: Clear any outstanding issues with the Accounts Division, OPPBA if applicable (2-4 months before retirement)

► UNOG Information (France and Switzerland)