The 80th session of the Pension Board of the United Nations Joint Staff Pension Fund (UNJSPF) was held virtually on 23 and 24 April 2025. The Pension Board reviewed UNJSPF performance, addressed solvency matters, and focused on key initiatives to enhance client satisfaction, improve operational efficiency, and support the Fund's long-term stability.
Oversight and Monitoring of the Performance of the Fund
Rosemarie McClean, Chief Executive of Pension Administration, and Pedro Guazo, the Representative of the Secretary-General for the investment of the assets of the United Nations Joint Staff Pension, offered comprehensive updates on the Fund's robust financial health and its commitment to the efficient delivery of client benefits.
Ms. McClean reaffirmed the UNJSPF's commitment to innovation, operational efficiency and resilience, as it adapts to an evolving environment and prepares to meet a potential surge in separations. She highlighted key performance milestones achieved in the first quarter of 2025, including processing 92% of benefits within 15 business days despite above-average volumes, ensuring timely monthly payroll, and responding to client calls within 15 seconds. She emphasized the Fund's focus on transparent communication and stakeholder engagement, citing over 21,000 attendees at pension townhalls and a 44% increase in website visits in 2024. She underscored the Fund's commitment to innovative solutions that prioritize customer needs, highlighting recent initiatives such as adopting a data governance framework, automating processes, and achieving ISO certification for responsible AI use.
Mr. Guazo emphasized that the Fund maintains a strong position due to effective management, sound governance and good decisions made in anticipation of market volatility. This has enabled the Fund to weather the current market conditions effectively. He highlighted that the Fund achieved a 15-year real rate of return of 3.9 per cent, well above the 3.5 per cent target, reflecting solid long-term goals. However, in the short term, the total portfolio slightly underperformed its benchmark, achieving a 3.53 per cent return (slightly below the benchmark of 3.85), indicating modest challenges in recent market conditions.
Special Adjustment for Small Pensions
The Board reviewed an analysis by the Pension Administration regarding the special adjustment for small pensions combined with the minimum benefit payable. The purpose was to identify potential options for an alternative mechanism in updating the special adjustment for small pensions in the future. The Board requested a more detailed presentation at the July 2025 session, including options for both the minimum benefit and the special adjustment of small pensions, potential implications, associated risks, and costs.
Application of Paragraph 26 of the Pension Adjustment System
For the first time, countries were reinstated onto the two-track feature under paragraph 26 of the Pension Adjustment System. Effective 1 April 2025, Ecuador and Grenada were reinstated on to the two-track, while the two-track was made available for the first time in Aruba, Cambodia, Maldives, Oman, and the United Arab Emirates. Separately, Lesotho and Mongolia will be suspended from the two-track on 1 October 2025 due to aberrant results. However, there are currently no beneficiaries on the two-track in these countries.
Solvency Monitoring and Actuarial Updates
The Chair of the Committee of Actuaries was invited by the Board to provide insight into the Fund’s expected solvency position in an environment of anticipated changes in the workforce across the United Nations system, recent instability in the financial markets, and possible uncertainty in current exchange rates. The Chair of the Committee of Actuaries highlighted that the results of the 31 December 2023 actuarial valuation indicated that a reduction in participant numbers would not be expected to have a significant impact on the Fund’s reported solvency. It was also noted that recent market volatility is not an immediate cause for concern because investment performance over many decades is more important in managing the solvency of the Fund. The Board will approve assumptions for the 31 December 2025 actuarial valuation in its 81st session in July.
Selection of a venue for the 81st session of the Pension Board
The Board accepted the invitation of the United Nations Industrial Development Organization (UNIDO) to host the 81st session of the Board at its offices in Vienna, Austria. The session is scheduled for the week of 21 to 25 July 2025.
