Article 28: RETIREMENT BENEFIT

(a) A retirement benefit shall be payable to a participant whose age on separation is the normal retirement age or more and whose contributory service was five years or longer.

(b) The benefit shall, subject to (d), (e) and (f) below, in respect of any period or periods of participation commencing on or after 1 January 1983, be payable at the standard rate obtained by multiplying:

(i) The first five years of the participant’s contributory service, by 1.5 per cent of the final average remuneration;
(ii) The next five years of contributory service, by 1.75 per cent of the final average remuneration;
(iii) The next 25 years of contributory service, by 2 per cent of the final average remuneration; and
(iv) The years of contributory service in excess of 35 and performed as from 1 July 1995, by 1 per cent of the final average remuneration, subject to a maximum total accumulation rate of 70 per cent.

However, in respect of a participant with a prior period of contributory service of five years or longer
ending between 1 January 1978 and 31 December 1982, the standard annual rate specified above shall
be calculated by taking into account as periods of contributory service for the purpose of
subparagraphs (i), (ii) and (iii) above the period of contributory service before 1 January 1983.

(c) The benefit shall, subject to (d), (e) and (f) below, in respect of any period of participation commencing prior to 1 January 1983, be payable at the standard annual rate obtained by multiplying:

(i) The first 30 years of the participant’s contributory service, by 2 per cent of the final average remuneration;
(ii) The years of contributory service in excess of 30, but not exceeding five, by 1 per cent of the final average remuneration; and
(iii) The years of contributory service in excess of 35 and performed as from 1 July 1995 by 1 per cent of the final average remuneration, subject to a maximum total accumulation rate of 70 per cent.

(d)     (i) However, except as provided in (ii) below, the benefit otherwise payable at the standard annual rate in accordance with the applicable provisions of (b) or (c) above to a participant at a level above D-2, top step, of the scale of pensionable remuneration indicated in article 51 (see appendix B below), shall not exceed, as at the time of the participant’s separation, the greater of:

(A) 60 per cent of the participant’s pensionable remuneration on the date of separation; or
(B) The maximum benefit payable under the provisions of (b) or (c) above to a participant at the level D-2 (top step for the preceding five years) separating on the same date as the participant;

(ii) However, for a participant separating at the level of Under-Secretary-General, Assistant Secretary-General or their equivalent level, to whom the provisions of (i) above are applicable, the benefit payable shall not be less than the benefit that would have been payable at the standard annual rate if the participant had separated from service on 31 March 1986; for participants separating at other levels above D-2, top step, in the scale of pensionable remuneration in appendix B below, to whom the provisions of (i) above are applicable, the benefit payable shall not be less than the benefit that would have been payable at the standard annual rate if the participant had separated from service on 31 March 1993; for participants who entered or re-entered the Fund at an ungraded level before 1 April 1993, the provisions of (i) above shall not be applicable.

(e) The benefit shall however be payable at the minimum annual rate which is obtained by multiplying the years of the participant’s contributory service, not exceeding 10, by the smaller of 180 dollars subject to subsequent adjustments in accordance with the movement of the United States CPI under the Pension Adjustment System (Click here) or 1/30 of the final average remuneration, if the benefit so calculated would be greater than the amount under (b) or (c) above.

(f) The annual rate of the benefit shall nevertheless not be less, when no other benefit is payable on account of the participant under these Regulations, than the smaller of 300 dollars subject to subsequent adjustments in accordance with the movement of the United States CPI under the Pension Adjustment System (Click here) or the final average remuneration of the participant.
(g) A benefit payable at the standard annual rate may be commuted by the participant into a lump sum subject to the following limitations and to supplementary article D, where applicable:

(i) If the rate is 300 dollars or more, the amount of the lump sum may not exceed the smaller of:

(A) The actuarial equivalent of one third of the benefit; or
(B) The actuarial equivalent of one third of the maximum benefit that would be payable to a participant retiring at the normal retirement age, on the same date as the participant, with a final average remuneration equal to the pensionable remuneration on that date for the top step of level P-5 on the scale of pensionable remuneration in appendix B below;

ii) Nevertheless, if the amount calculated under (i) above is less than the amount of the participant’s own contributions, then the benefit may be commuted to the extent of the latter amount;
(iii) If the rate is less than 1000 dollars, the benefit may be commuted to the extent of its full actuarial equivalent; if a participant is married, the prospective benefit payable to his or her spouse may also be commuted at the standard annual rate of such benefit.

(h) A benefit payable at the minimum rate under (e) or (f) of this article may be commuted into a lump sum as in (g) above, if the participant elects to receive it instead at the standard annual rate.

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