All participants in the Fund are encouraged to complete form PENS.A/2 to specify the recipient(s) of any residual settlement that may become due under article 38 of the UNJSPF Regulations, Rules and Pension Adjustment System and section B.5 of the UNJSPF Administrative Rules, as well as of any retroactive due but unpaid benefit owing to them at the time of their death under section J.3 of the UNJSPF Administrative Rules.
When does a residual settlement become payable?
A residual settlement becomes payable if:
(a) The participant died in service and had no survivors (e.g. a spouse, former spouse, child under the age of 21, disabled child or secondary dependant) who are entitled to a benefit under articles 34, 35 bis, 35 ter, 36 or 37 of the UNJSPF Regulations;
(b) The participant died after service but before electing a benefit, provided that he or she had five years or more of contributory service and no survivors (e.g. a spouse, former spouse, child under the age of 21, disabled child or secondary dependant) who are entitled to a benefit under articles 34, 35 bis, 35 ter, 36 or 37 of the UNJSPF Regulations;
(c) The participant died during entitlement to a retirement, early retirement, deferred retirement or disability benefit, provided that (i) no further benefits are payable to his or her survivors (e.g. a spouse, former spouse, child under the age of 21, disabled child or secondary dependant) who are entitled to benefits under articles 34, 35 bis, 35 ter, 36 or 37 of the UNJSPF Regulations; and (ii) the total amount of the benefits already paid to and on account of the deceased participant was less than the participant’s own contributions plus interest;
(d) The participant had survivors (e.g. a spouse, former spouse, child under the age of 21, disabled child or secondary dependant) who are entitled to a benefit under articles 34, 35 bis, 35 ter, 36 or 37 of the UNJSPF Regulations and, following the death of the participant and the death or termination of entitlement of all survivors, the total amount paid by the Fund is less than the amount of the participant’s own contributions plus interest.
In these cases, the Fund pays a residual settlement to your designated beneficiary at the time of your death. The benefit is equivalent to your own contributions to the Fund with compound interest, minus any payments already made to you or your respective survivor(s). The residual settlement is payable to the person or institution designated on your A/2 form.
A new designation must be completed for each new participation in the Fund. A new designation will supersede all previous designations.
Who is entitled to receive a residual settlement?
The residual settlement is payable to the person and/or institution designated as a recipient by the participant/retiree on the form entitled “Designation of recipient of residual settlement” (known as “A/2 form”). It should be noted that the A/2 form is often confused with the United Nations Form P.2 (Designation, Change or Revocation of Beneficiary) or a similar form issued by the participant’s employing organization in respect of benefits arising from the participant’s employment in the event of his/her death. In case of doubt about the form you may have in your possession, please inquire with the Fund or with the respective SPC on this matter.
When does a retroactive due but unpaid benefit arise?
A retroactive due but unpaid benefit arises if, at the time of the participant’s death, a benefit was payable but had not yet been disbursed to the participant. Such benefits include retirement, early retirement, deferred retirement and disability benefits or a withdrawal settlement that was due but not paid at the time of the participant’s death, including payments that may have been returned by the participant’s bank but were properly payable.
What does retroactive due but unpaid benefits include?
The following amounts, if due and unpaid at the date of death, shall be payable to the designated beneficiaries:
a) Withdrawal settlement due but unpaid, where death occurs after separation with less than five (5) years of contributory service.
b) Suspended monthly benefits, even where a survivor’s benefit is payable.
c) Lump sum and first month(s) of pension where death occurs after separation but before payment commences, even where a survivor’s benefit is payable.
d) Returned monthly benefit payments that remain due, even where a survivor’s benefit is payable.
e) Any other retroactive payments due and unpaid at the date of death.
Who can be designated as a recipient on form A/2?
You may designate any individual or institution as your recipient(s). If you designate an institution, you must confirm with that entity that it is able to receive donations as a designated recipient. If the Fund is unable to make the payment to a designated institution or the institution refuses to accept the payment, the amount will be distributed among any other surviving designated recipients when payment is due in the ratio of their own shares or, failing such surviving designated recipients, to your estate.
How many recipients can be designated?
You can designate as many recipients as you wish. If more than one recipient is designated, the recipients will share the residual settlement and/or retroactive due but unpaid benefit equally, unless otherwise indicated. The share of a designated recipient who may predecease you will be distributed among any surviving designated recipients in the ratio of their own shares.
What if the participant/retiree did not complete an A/2 form?
In the absence of a designation by the participant/retiree, the residual settlement and/or any retroactive benefit due but unpaid will be paid to the participant’s/retiree’s Estate.
What should a participant do before retirement to facilitate the processing of benefits payable to his/her survivors?
All participants must submit to the Fund at the time of separation from service copies of: their birth certificate; marriage certificate(s); divorce decree(s); copy of birth certificate of their spouse(s); verified signature of the spouse(s); birth certificate of each of their children under the age of 21; and copy of valid passport or government-issued ID of spouse and participant.
What can a retiree do after retirement to facilitate the processing of his/her survivor’s benefits?
After separation from service, it is strongly recommended that all retiree’s and/or beneficiaries bring to the Fund’s attention any change(s) in the retiree’s marital status and/or family composition together with the supporting documentation.
Calculations and payments of the residual settlement
How is the residual settlement paid?
The residual settlement constitutes a one-time payment effected in accordance with the original signed payment instructions submitted to the Fund. It is not a monthly periodic benefit.
How is the residual settlement calculated?
This one-time payment is equivalent to the participant’s/retiree’s own contributions, with compound interest minus any payments made to that participant/retiree and/or to his/her respective survivor(s). A residual settlement is a benefit due from the Fund at the time of death of a participant or of retiree, if the total amount of the benefits paid to and on account of the participant or retiree (such as surviving spouse’s benefit, divorced surviving spouse’s benefit, child’s benefit) is less than the participant’s/retiree’s own contributions to the Fund. The benefit is paid as a one-time lump sum payment.
