Appendix 6: Terms of Reference for the Committees of Actuaries

Section 1
Purposes

1.1 In accordance with article 9 of the Regulations of the United Nations Joint Staff Pension Fund (JSPB/G.4/Rev.16) “(a) A committee consisting of five independent actuaries shall be appointed by the Secretary-General upon the recommendation of the Board. (b) The function of the committee shall be to advise the Board on actuarial questions arising out of the operation of these Regulations”. In accordance with article 11(a) of the Regulations, “The Board shall, on the advice of the Committee of Actuaries, adopt, and revise when appropriate, service, mortality and other tables and shall decide upon the rates of interest to be used in the periodic actuarial valuation of the Fund”.

Section 2
Role and responsibilities

2.1 Under article 11 of the Fund’s Regulations, the Board must have a valuation made by the Consulting Actuary at least once every three years. Current practice is to have the valuation performed every two years. In this connection, the Committee is to provide professional advice as follows:

review the results of the valuation (usually in the even-numbered years);

review and, where necessary, recommend revisions to the economic and demographic assumptions (usually in the odd-numbered years);

assure the Board that the methodology and demographic and economic assumptions used are appropriate.

2.2 The Committee shall also review, advise and make recommendations regarding pension benefit design, including those requested by the Board.

2.3 The Committee may advise on the programme of work of the Consulting Actuary, shall review the work performed by the Consulting Actuary and advise the Chief Executive Officer on the evaluation of the Consulting Actuary’s performance, as may be required from time to time.

2.4 The Committee, or its representatives, may meet with the Investments Committee or other bodies involved with the Fund, as required.

2.5 The Committee shall report on the work of each of its meetings.
Section 3
Membership

3.1 Due considerations should be given to geographical representation. The composition in respect to the five regular members will include one member from each of the following regions: (a) Africa; (b) Asia; (c) Eastern Europe; (d) Latin America and the Caribbean; and (e) Western Europe and Other States.

3.2 In view of the growing scope and complexity of the coverage provided by the Fund, which provides retirement, death, disability and related benefits for its participants upon cessation of their services, ad hoc members may be added to serve along with the five regular members of the Committee. The ad hoc members would also facilitate an orderly succession should a regular member serving on the Committee decide to retire or to no longer serve.

3.3 During their term the ad hoc members will fulfill the same role as the regular members.

Section 4
Process of appointment and Terms of Appointment

4.1 The regular and the ad hoc members of the Committee of Actuaries shall be appointed by the Secretary-General, upon the recommendation of the Pension Board. The members are expected to be well experienced in actuarial work relevant to the nature of the Fund. Pursuant to the established procedures used in respect to the members, the Secretary/CEO shall continue to consult with the member organizations and the Committee of Actuaries on specific names to be considered. All names put forward will be placed before the Pension Board for its full consideration and eventual recommendation to the Secretary-General.

4.2 The Pension Board intends to apply the following criteria in determining the membership of the Committee:

(a) The term for regular members is three (3) years; members may serve no more than five (5) terms;

(b) The term for ad hoc members is two (2) years;

(c) There must be adequate representation in terms of expertise, regional balance and gender;

(d) Service with the Committee would not create a conflict of interest.

Section 5
Meetings

5.1 The regular and ad hoc members of the Committee of Actuaries are expected to attend the regular sessions, which are normally held on an annual basis before sessions of the Pension Board or its Standing Committee.

5.2 In view of the growing diversity and complexity of subjects implicit in a maturing fund, as well as potential amendments to the benefit provisions and the need to assess the actuarial implications and analyses requested from the Consulting Actuary, the Committee of Actuaries or a sub-committee thereof may hold special sessions to follow up on specific topics arising out of the regular sessions and to monitor actuarial developments and trends.

Section 6
Budgetary implications

6.1 The Fund will pay the cost of the regular members’ and the ad hoc members’ travel to attend the regular sessions (and any special sessions, as may be required) of the Committee, together with a daily subsistence allowance established at the rate applicable to the place of the Committee’s meeting.
These terms of reference are available on the Fund’s website:
www.unjspf.org

Our Mission

Your Pension Security

Site designed and developed by Social Ink [+]

Font Resize
Top