In the case of death after service, you did not elect to be paid the maximum lump-sum commutation of the benefit allowed, and the total amount of the benefit paid to you or to your survivors is less than your own contributions to the Fund.
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 A2 form.
If there is no duly filled out, dated and signed A2 Form in the Fund’s records, an amount will be paid to the late participant’s/retiree’s estate as a residual settlement. For more information, check out our comprehensive Legal guardianship and estate page.
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.
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); and birth certificate of each of their children under the age of 21.
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). Actions by and documents required from participants, retirees or beneﬁciaries. 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.
(a) A residual settlement shall be payable if, upon the death of a participant and the exhaustion, as the case may be, of any entitlements due under these Regulations to his or her survivors, the total amount of the benefits paid to and on account of the participant is less than the participant’s own contributions.
(b) The settlement shall be payable to a beneficiary designated by the participant and alive when the payment is due; failing such beneficiary, the settlement shall be paid to the estate of the participant.
(c) The settlement shall consist of the participant’s own contributions at the date of his or her separation or death in service, reduced by the total amount of the benefits paid to and on account of the participant.