Participants who elected or were deemed to have elected a “deferred retirement benefit” now have the option to add the value of their prior contributory service relating to that deferred retirement benefit to their current service, under certain conditions. This new option follows the approval by the United Nations General Assembly in its resolution 77/258 of an amendment to article 1 and the addition of article 24 bis to the Fund’s Regulations.
What has changed as of 1 January 2023?
As of 1 January 2023, participants who had a prior period of contributory service for which they elected or were deemed to have elected a periodic deferred retirement benefit under Article 30 of the Fund’s Regulations, which is not yet due in payment, now have the possibility to elect to add such prior contributory service to their current participation, within one year of re-commencement of participation. That election is referred to as ‘restoration’ under Article 24 bis.
The value of the contributory service to be credited shall be determined to be equivalent to the actuarial value of the deferred retirement benefit not yet in payment. This means restoration in the case of a deferred retirement benefit may not result in the restoration of the full period of contributory service initially earned for the prior period of participation, because the restoration must be carried out at no cost to the Fund.
Those participants who are in service as at 1 January 2023 and have an entitlement to a deferred retirement benefit that was established on or after 1 April 2007 and that is not yet due to be in payment, are also allowed to restore. However, such election must be made by 31 December 2023.
What should I do if I am interested?
Practical details for implementation of the new measure are currently being worked out by the Fund and further guidance will be issued in due course. In the meantime, participants can register their interest to find out if the new measure would fit their situation by sending a message to the Fund using the official Contact Form here. In the Contact Form, you should identify yourself as ‘Participant’ and select the query topic “Restoration”; in the text box, you should indicate “Article 24bis” and your request.
What is restoration?
Restoration is an option for former participants who separate and then re-enter the Fund, to elect to add their prior contributory service to their current participation. By restoring, participants combine the prior period of contributory service with their current one, which may increase the total number of years and months of their contributory service and thus increase their future pension.
In recent years, restoration was only possible for former participants who took a withdrawal settlement upon separation. This restoration option and related conditions are still in force and have not been affected by the above-mentioned change. Check here to learn more about restoration.
What is a deferred retirement benefit?
A deferred retirement benefit is an option for participants who separate before reaching normal retirement age to defer payment of their pension typically to their normal retirement age, or earlier except that it cannot commence into payment before age 55/58. Check here to learn more about the deferred retirement benefit.