STRONG SUPPORT EXPRESSED IN FIFTH COMMITTEE FOR ICSC ROLE IN DETERMINING SERVICE CONDITIONS OF UNITED NATIONS STAFF
Press Release
GA/AB/3258
STRONG SUPPORT EXPRESSED IN FIFTH COMMITTEE FOR ICSC ROLE IN DETERMINING SERVICE CONDITIONS OF UNITED NATIONS STAFF
19981106 Administrative and Budgetary Committee Continues Discussion of United Nations Common and Pension SystemsThe Fifth Committee (Administrative and Budgetary) this afternoon continued discussing conditions of service of the staff of the United Nations common system, and the work of the bodies involved in establishing those conditions.
Many Committee members expressed strong support for the role of the International Civil Service Commission (ICSC) in determining the conditions of service for United Nations staff. They stressed that the ICSC's independence must be protected, but also welcomed efforts to broaden consultation and to improve working relations with the staff associations.
On the issue of gender balance in the United Nations common system, Panama's representative, speaking for the Rio Group, said the situation was worse now than in previous years, as only 5 per cent of recruits at the P-5 and higher levels were women. She stressed that the recruitment of women, particularly from developing countries, should take place more rapidly.
Broad support was expressed for several of the Commission's recommendations, including increasing the base salary of the Professional and higher categories of staff, and increasing the rates of dependency allowance.
Member States deserved civil servants of the highest calibre, and there was thereby a need to remunerate them appropriately, Uganda's representative said. Unless remuneration levels fully took account of those of the best paid national civil service, it would be impossible for the Secretary-General to keep high-quality staff. She added that the Fifth Committee should resist the temptation to "second guess" the ICSC.
However, Canada's representative -- speaking also for Australia and New Zealand -- was concerned by a report of the Board of Auditors that technical readings of General Assembly policy decisions had led to higher salaries for staff than would otherwise be the case. The Auditors had found problems with
Fifth Committee - 1a - Press Release GA/AB/3258 21st Meeting (PM) 6 November 1998
the surveys used to determine payments to Professional and General Service staff.
The representative of Indonesia, speaking for the "Group of 77" developing countries and China, sought clarification from both bodies on ICSC claims that the Board of Auditors had exceeded its mandate in its review. Regarding the linguistic competence of the ICSC Secretariat, the proposal to establish a working group on that matter deserved consideration, he said.
Many States called for action on the post adjustment for United Nations common system staff based in Geneva.
Statements on the United Nations common system were also made by the representatives of the United States, Ukraine, Republic of Korea, Morocco, Bangladesh and China.
Also this afternoon, the Committee continued discussing the United Nations pension system. The representative of the Russian Federation said the United Nations Joint Staff Pension Fund's investors deserved praise for prompt responses to the Asian financial crisis, which had averted potential problems. His delegation backed the current long-term and diversified investment strategies.
On delays over the proposed agreement between the Russian Federation and the ICSC on pension rights of former Soviet Union citizens, he said Member States were aware of the financial crisis in his country. The Government had not removed the legitimate need of retirees from its agenda.
The representatives of Ukraine and Uganda also spoke.
The Committee will meet again at 3 p.m. on Monday, 9 November, to begin considering United Nations human resources management.
Fifth Committee Work Programme
The Fifth Committee (Administrative and Budgetary) met this afternoon to conclude its general discussion on the United Nations common system and the United Nations pension system.
(For background information on the United Nations common system and the United Nations pension system see Press Release GA/AB/3225 of 2 November.)
Statements on Common System
PRAYONO ATIYANTO (Indonesia) speaking on behalf of the "Group of 77" developing countries and China, said the Group found the report of the International Civil Service Commission (ICSC) reader friendly and useful, and commended the ICSC for respecting format and presentation recommendations set by the General Assembly in resolution 52/214B. The Group attached great importance to the ICSC's role and its importance as a means to regulate and coordinate conditions of service. Any attempt to modify its role should be avoided. He noted that staff representative participation was limited and their participation could enhance the ICSC's outcomes.
The ICSC had reported that the Board of Auditors had exceeded its mandate in paragraph 19 of its report, he said. The Group would like further clarification on that from the ICSC and from the Board of Auditors before commenting. Concerning the consultative process and working methods of the ICSC, the comments contained in section three of the report would strengthen the decision-making process and the authority of the ICSC decisions. The Group noted the observation of the Consultative Committee on Administrative Questions in the ICSC report, but emphasized that the election of experts to the ICSC remained the prerogative of the General Assembly. Working groups with the participation of all concerned parties, as proposed, would improve the work of the ICSC. The Group sought legal advice on effects of changes to rules of procedure proposed in paragraph 54 of the report, and some clarification on the condition made for the implementation of those proposals.
Regarding the linguistic competence of the ICSC Secretariat, the proposal to establish a working group on that matter deserved consideration, he said. Noting the discussion in the report of the ICSC on comparators, the Group reaffirmed the Noblemaire Principle as the basis for determining Professional conditions of service. The Group also hoped that the additional information requested by the ICSC for the complex task of establishing the post adjustment for Geneva would be provided.
JOHN ORR (Canada), speaking also for Australia and New Zealand, said that to maintain a strong common system, there was need for an impartial body -- trusted by Member States and staff -- that prepared recommendations
Fifth Committee - 3 - Press Release GA/AB/3258 21st Meeting (PM) 6 November 1998
based on sound interpretations of fundamental principles such as the Noblemaire and Flemming Principles [by which common system salaries are determined]. There was room for improvement in the ICSC. The Board of Auditors' review of ICSC management had identified several such areas. He welcomed the recommendations of that body, and supported periodic audits of the Commission's activities in light of the Board's observations.
The Auditors' report provided insight into the technical interpretations and application of the policy decisions adopted by the General Assembly, he said. Those interpretations had led to higher salaries for United Nations staff than would otherwise be the case. General Service salary surveys should be representative of the local employment market, not an exclusive sample of the best of the best. The Auditors should follow up on the issue to ensure that the General Service salaries were indeed set according to that principle. The audit had also noted problems with surveys used to establish the post adjustment for Professional salaries. Those issues should be addressed by means including improving the questionnaire and methods of data collection to provide more accurate expenditure weights.
The ICSC should compare the information it used with that provided by independent organizations, especially for the major duty stations, he said. In time, some of that work could be outsourced. He noted with concern that the definition of the Noblemaire Principle in the Board of Auditor's report differed from that in the ICSC report, which was the one he accepted. He did not concur with the Commission's observation that the current comparator was no longer the best, and had difficulties with the methodology used to determine the highest paid civil service.
Canada, Australia and New Zealand were disappointed that the ICSC had closed the file on developing a Geneva post adjustment that represented the cost of living of all staff working at that duty station, he said. The cost of living in towns bordering Geneva was about 18 per cent lower than in Geneva; staff living in those areas benefitted from a post adjustment based only on Geneva prices. Methodological and legal solutions to the problem should be pursued before the next salary survey in Geneva in the year 2000. The Commission should seek an advance ruling from the United Nations Administrative Tribunal on a proposed solution to the General Assembly's request.
He welcomed progress made towards normalizing working relations between the Commission and the staff associations. The report of the Working Group on the Consultative Process and Working Arrangements contained proposals that could restore a meaningful consultative process. He was pleased that the Commission had adopted the substance of those recommendations and looked forward to the new consultative process and working arrangements. The structure of the Commission's membership should be changed. Proposals in the
Fifth Committee - 4 - Press Release GA/AB/3258 21st Meeting (PM) 6 November 1998
Working Group's report on the qualifications of members of the ICSC could enhance its work. He expressed concern that little progress had been made in establishing a review of the ICSC's functioning. The terms of reference for that review should be cast in the broader context of the challenges facing the integrity and long-term viability of the common system.
JUDITH MARIA CARDOZA (Panama), speaking on behalf of the member States of the Rio Group, said that the Group noted the new trend in the ICSC whereby it focused its consideration on income and human resources management. It noted the establishment of the Working Group consisting of representatives of the agencies and the staff associations, which met and prepared recommendations that, with minor changes, were adopted by the ICSC. In view of the positive reaction to the Working Group's recommendation, she hoped both trade unions would resume their full participation in the system. The election of ICSC members should remain free and fair. The Group noted with satisfaction that the Commission had started to implement, where possible, some of the recommendations of the Board of Auditors. It welcomed the computerized databank of skills. The current language incentive system, the Rio Group believed, should be replaced by a non-pensionable additional sum.
Regarding the gradual elimination of the expatriate component in the margin for those who had been in a place for some time, the Group believed that there was no reason for change, she said. The Group was pleased that the ICSC continued to look at the status of women. While progress had been made, achievement of the goals were far away. The situation was worse now than in previous years, as only 5 per cent of recruits at the P-5 and higher levels were women. The Group hoped for a speeding up of recruitment of women, particularly from developing countries.
The Group was pleased that the ICSC increasingly mentioned human resources. A general framework for human resources management was being prepared and a working group was being established to identify governing principles that would cover the whole system. The Group hoped it would make useful and innovative recommendations. Two timely aspects were also being addressed -- ethical aspects of the international civil service and updating the post adjustment system. The Group appreciated information received that adjustments in New York would not affect other posts or interfere in the General Assembly's role of setting salaries through the margin. The Group endorsed the proposal not to change the current system.
Regarding post adjustment for Geneva, she said that in view of the complexity of technical, legal and administrative aspects, the Rio Group agreed with the ICSC recommendation that no single index be established. It noted ICSC recommendations on travel arrangements and per diem. In the ICSC recommendations on various remuneration matters, the ICSC had acted without changes to the approved methodology. On the problem of inappropriate margins
Fifth Committee - 5 - Press Release GA/AB/3258 21st Meeting (PM) 6 November 1998
at the higher levels, the Group hoped the ICSC studies would reach satisfactory conclusions, she said.
COLEMAN NEE (United States) said the ICSC played a critical role in the efficiency of the United Nations, and the United States strongly supported that role. It was essential for the ICSC's credibility that its members be technically competent and perform their functions in an independent manner. The United States urged Member States to ensure that the candidates they proposed had those qualities. It was not a good idea to be over-reliant on tripartism in the ICSC's work. While it was appropriate that the ICSC consider all views, its raison d'etre was as a thoroughly independent technical body, and its recommendations should be made on that basis. Given that the ICSC Commissioners were independent experts with a wealth of different types of knowledge and experience, the United States would appreciates reports containing both the pros and cons of issues, and all the key dissenting views.
He said the United States supported the ICSC recommendations regarding a base/floor salary scale, the staff assessment scale to be used in conjunction with base/floor salaries and the dependencies allowance, and it noted the reported financial implications. It expected that those implications would be absorbed within the existing budget level. His country agreed that the current language incentive programme should be replaced by a non-pensionable bonus. That was a good management practice. It also agreed with proposals that the payment should be subject to periodic retesting and certification of use. On the education grant, the United States accepted the ICSC finding, but was concerned about consistency. It would like assurance that it was not paid to staff living in their own countries, and that it was paid only in places which allowed for the reassimilation of the child into its home country.
The United States welcomed ICSC comments on the equality of women, he said. Clearly there had been progress, but it was disappointing that a "glass ceiling" still existed. Every effort must be made to remove that barrier by recruitment and promotion of women. Comparisons with the national civil service comparator on the matter of payment at the margin for overseas posting was not fair, because of difference in the length of overseas service in the comparator service.
The General Assembly had asked for a report on supplemental Daily Subsistence Allowance payment, he said. The United States did not believe that the use of supplemental Daily Subsistence Allowance had been justified. The United States welcomed ICSC management audit comments, but was disappointed that the management audit did not focus more on its day-to-day activities. Nonetheless, it was a good reminder that some technical issues still needed to be addressed, such as adjustment to the margin. The United States would welcome cost-neutral proposals to address that problem. The
Fifth Committee - 6 - Press Release GA/AB/3258 21st Meeting (PM) 6 November 1998
General Assembly had asked several times for the establishment of a fair single-post adjustment for Geneva, and it was a great disappointment that the ICSC was unable to meet that request. It was time to move forward. The ICSC should proceed without further delay to establish two separate post adjustments for Geneva.
OLEKSII V. IVASCHENKO (Ukraine) supported the independent status of the ICSC and its activities aimed at ensuring uniform standards of service for common system staff. He welcomed the fact that the Commission had responded positively to implementing the recommendations of the Board of Auditors. Ukraine supported the Commission's decision to increase the base salary for the Professional and higher categories of staff, and to increase children's allowance rates. Such steps were needed to reflect increases in the comparator's salary scale, as well as in the value of tax abatements and social benefits at some duty stations. The local currency entitlement for the allowance for hard currency duty stations should be maintained, and the amount of the dependency allowance reduced, in cases where those dependents were subsidized by respective governments.
Noting the Commission's efforts to compare the conditions of service of civil service in the United States with those in Germany, he said the issue of changing the comparator should only be raised after the Commission had completed a comprehensive study of the problem. Ukraine recognized the complexity of post-adjustment issues for the organizations based in Geneva, and urged the Commission to come up with concrete proposals on establishing a single post adjustment index for Geneva which would ensure the purchasing parity of staff serving in those organizations, regardless of where they lived.
Incentives should remain a tool for encouraging language proficiency among staff, he said. He concurred with the Commission's recommendation to embody that in a non-pensionable bonus. The ICSC's wide range of activities required intense statistical data collection and processing. It should have direct access to a centralized and comprehensive human resources database for each United Nations common system organization with up-to-date and accurate information. Utilization of the Integrated Management Information System could facilitate the Commission's technical work.
Ukraine attached particular importance to gender balance issues, he said. He welcomed the Commission's initiative to elaborate guidelines to help increase accountability of managers for ensuring gender balance, but thought the achievement of equal proportions of men and women in international civil service should not be seen as an end in itself. The recruitment process must be based on the principles of equitable geographical representation and the selection of the best qualified candidates. Gender could not and should not be seen as an advantage over excellence.
Fifth Committee - 7 - Press Release GA/AB/3258 21st Meeting (PM) 6 November 1998
The ICSC should play a more active role in formulating career development policies in the common system, he said. He welcomed the Commission's decision to set up a working group for elaborating an integrated framework for human resource management. Also, he welcomed the constructive exchange of views between representatives of the ICSC and staff associations, within the framework of the Working Group on the Consultative Process and Working Arrangements of the ICSC. However, the resulting compromise decisions should not affect the Commission's decision-making authority or hamper its efficiency. Before amending the Commission's rules of procedure, a legal opinion should be sought to avoid their possible unpredictable legal implications and to ensure that such amendments were not in conflict with the ICSC statute.
PARK HAE-YUN (Republic of Korea) said his delegation attached great importance to maintaining high standards of efficiency and integrity in staff members. To ensure that, the conditions of staff should be fully competitive. He supported the role of the ICSC, which worked as an independent and technical body. The ICSC's independence must be fully protected. Regarding application of the Noblemaire Principle, any change in the current methodology should be made after a thorough review of the technical and financial implications. It was not efficient to change the comparator at the current stage. The ICSC should undertake a further study to be completed by 2001.
He endorsed the ICSC's recommendations regarding increasing salaries and dependency allowance, and recognition of language ability and hazard pay. Further research was needed on certain issues. Noting the complex technical, legal and administrative difficulties of a single post-adjustment index for Geneva, he said the ICSC should study the issue further. Any change in the current salary structure should aim at encouraging career development and performance. He stressed the importance of the ICSC's independence in coordinating and regulating conditions of service for staff of the common system.
ABDESALAM MEDINA (Morocco) said his delegation generally supported proposals to improve the conditions of United Nations staff, as those to large extent determined that staff's efficiency and effectiveness. The ICSC had faced time constraints in its consideration of the code of conduct for United Nations staff, and while he was grateful for its prompt consideration of the issue, consideration under other circumstances would have been preferable.
On the Auditors' study of the Commission's secretariat, he said the Commission had indicated that the Auditors had exceeded their mandate, in part because of ambiguity regarding the functions of the Commission and the Secretariat. He suggested that the Commission be requested to clarify the situation and propose possible changes in its statute. Until such a review
Fifth Committee - 8 - Press Release GA/AB/3258 21st Meeting (PM) 6 November 1998
was undertaken, he asked the ICSC secretariat for additional explanations, as well as for the opinion of the Board of Auditors.
The results of the Working Group on consultative procedures and the commissions' working procedures were on the whole positive, he said. The proposals advanced by that Group should be viewed as part of an ongoing process of reviewing the Commission's work. The proposed mechanism for consultation would facilitate the Commission's work, and he encouraged continuation of that process.
With respect to the proposal on collection of data, he emphasized the importance of availability of documentation in all Untied Nations official languages. He envisaged proposing a request in the draft resolution that the Commission continue, in the context of the working group, to review its Statute, as well as the composition of its bureau and secretariat, and to report thereon to the Assembly.
On the question of taking into account linguistic abilities, he noted that that was the one issue on which a decision had been taken by vote in the ICSC. He underscored the importance of considering such competence as an element of promotion and recruitment. It was unfair to favour one language over another. Arabic language skills should be recognized equally with other language skills.
HUMAYUN KABIR (Bangladesh) said he joined those who said the ICSC played the central role in regulating conditions of service in the common system and had been doing its job satisfactorily. There was no justification for reviewing its Statute. The proposal to create a review group to examine the Commission needed further study. In considering the matter, the Assembly should take into account the need to maintain the Commission's independence. He welcomed the consultative process that had occurred last year, generating valuable inputs. All concerned should show flexibility and engage in constructive dialogue. He recognized the dedicated service rendered by staff members, and supported making the conditions of service attractive and competitive, guided by the relevant principles of the Charter.
He welcomed the formation of a working group to examine the framework of human resources management. As regarded the Board of Auditors' recommendation on the management review of the secretariat, he found the situation intriguing. The ICSC was saying the Auditors had gone beyond their mandate by calling into question decisions of the ICSC and the Assembly. At the same time, a number of recommendations had been implemented by the ICSC. More information was needed. The recommendations of the ICSC were mainly general and non-controversial, so his delegation could for the most part support them.
Fifth Committee - 9 - Press Release GA/AB/3258 21st Meeting (PM) 6 November 1998
YAO XIAODONG (China) said the ICSC's annual report for 1998 provided comprehensive information on actions taken by the Commission to respond to the Assembly's resolutions. Section C of Chapter two of the report dealt with the Auditors' review. While a number of questions required further clarification, he appreciated the positive attitude adopted by the Commission in responding to the Auditors' recommendations. United Nations auditing work should be carried out within the scope mandated by the General Assembly.
His delegation believed that as an independent expert body subsidiary to the General Assembly, the Commission should fulfil mandates entrusted to it by the Assembly and hoped the Working Group would make positive efforts to improve the work of the ICSC. His delegation had noted the Commissions' conclusions on questions of the comparator, narrower margins for higher categories, treatment of expatriation and post adjustment. His delegation agreed with the ICSC that related questions required further analysis, and he hoped additional information would be provided in informal consultations. He agreed in principle to the necessary periodic adjustments to the salary and benefits of the common system, as well as formulas proposed by the ICSC.
He appreciated the Commission's work and activities regarding the framework for human resources management. Some ICSC proposals, such as the establishment of a databank for recruitment, were interesting. Noting security concerns regarding staff, he said the United Nations and its subsidiary organs should take measures necessary to guarantee the safety of locally and internationally recruited staff.
ROSSETTE NYIRINKINDA (Uganda) said the ICSC was a very important expert body. Once again its report was balanced and fair. It contained moderate and reasonable measures. Uganda shared some of the concerns of the staff associations and believed the General Assembly should address particularly those matters raised concerning security of staff in the field and conditions of service. Member States deserved civil servants of the highest calibre; there was a need to remunerate them appropriately.
Uganda believed the proposals of the ICSC, which affected both categories of staff, had clearly been made on a technical and sound basis, she said. The Fifth Committee should resist the temptation to second-guess the ICSC. Failure to provide remuneration which fully took into account the conditions of the best national civil service would make it impossible for the Secretary-General to keep staff of the highest standard. Uganda also believed security of the staff was very important, and hoped the responsible office would provide information on staff security to the informal consultations on the matter. She noted that many recommendations by the Board of Auditors transcended the Board's mandate. Additionally, she was pleased to note the involvement of the two staff associations in the consultative processes
Fifth Committee - 10 - Press Release GA/AB/3258 21st Meeting (PM) 6 November 1998
leading to the report. Their involvement would lead to improvements in ICSC efficiency.
Statements on United Nations Pension System
Mr. ORR (Canada), also speaking on behalf of Australia and New Zealand, stated that the prudent management of the pension fund was important. He regretted that, on a number of the recommendations, the Pension Board had to resort to votes, and hoped it would find consensus in future. He sought explanation of two different methods in the report of valuation concerning the Fund's capacity to meet its obligations. The introduction of indices to benchmark the Fund's performance was welcome. It would be interesting to know how the Fund performed compared to United States' pension funds. The Fund had grown greatly, and, as it was the practice of most large funds to use external advisors, it was good that the Fund had engaged four advisors.
He was pleased to note that the Fund had begun to address the problem of benefits for spouses and former spouses. The countries for which he spoke would prefer that changes went further and did not require the concurrence of participants. They would consider adoption of the changes at this session on the understanding that it was a first step and would be further considered at the Board's next meeting.
EVGUENI N. DEINEKO (Russian Federation) said that the Fund's investment activities deserved a high mark. It had responded promptly to the emerging financial crisis in Asia and avoided potential problems. Recently the Fund's activities had proved the correctness of focusing on the long term and on diversification. The Russian Federation backed the current investment strategies. The first-time surplus in actuarial valuation was very welcome and was indicative of the Fund's maturity. However, it should not be seen as a reason to liberalize the system. Actuarial valuations were influenced by many factors. The Pension Board should follow the Fund's actuarial balance closely and only propose changes when the balance had been stable for a length of time. Then it should make a proposal on reduced contributions. The Russian Federation expressed reservations about the Board's recommendation on a change to interest payments, which had been approved by a vote, not by consensus.
The Fund had worked hard to identify proposals for the allocation of functions and for cost-sharing, he said. The approaches to reform had been considered thoroughly. The Russian Federation noted with gratitude that the Fund secretariat and the Joint Staff Pension Board had focused on the long term, and thereby it supported the recommendations on the management system. On revised budget estimates, the Russian Federation also supported the proposed solution.
Fifth Committee - 11 - Press Release GA/AB/3258 21st Meeting (PM) 6 November 1998
Regarding the reclassification of Board senior posts, he said the Russian Federation was ready to consider the proposals positively, taking the scope of the functions of the posts into account. Regarding pension adjustment, however, it objected to the recommendation to reduce the threshold for cost of living adjustments from 3 per cent to 2 per cent, as it did not see justification for such a change. That matter should be revisited when the actuarial situation was stable. The Russian Federation was also concerned that the Board had resorted to voting three times in determining its recommendations, rather than reaching consensus. That would complicate the General Assembly's consideration of those recommendations. Voting was not the best way to find a solution, and the Russian Federation urged the Board not to pass recommendations by vote in future.
He said the proposed agreement between the Russian Federation and the ICSC, had been a matter of concern to the Russian Federation since 1996. Significant efforts had been made to achieve progress and find a speedy solution to the problems of the affected retirees. Work on that issue, he admitted, had taken a longer time and greater effort than expected two years ago. In that time, his Government had been dealing with the protection of the most vulnerable groups, which had affected progress on the agreement. Some mid-1998 progress had been reduced to nought earlier this year.
He said Member States were aware of the financial crisis in Russia, and the attendant social problems must be faced. The lack of resources in the federal budget seriously hampered implementation of the agreement. The Government was seeking ways to overcome that situation and had not removed the legitimate needs of retiree from its agenda. He hoped the General Assembly would understand and assured Member States that serious attention was being given to solving the problem as soon as possible.
Mr. IVASCHENKO (Ukraine) said that Ukraine was not responsible for the fact that the actuarial value of Fund rights for its citizens had been transferred to the social security fund of the former Soviet Union. It would seek a solution that would support its own national rights and would work with the Pension Fund in that regard.
Ms. NYIRINKINDA (Uganda) said Uganda was always concerned about the health of the Fund, because it was important for the welfare of participants and beneficiaries. She was therefore pleased to note that the Auditors had reported that the Fund's activities were being carried out satisfactorily. Uganda wished to stress the importance of adequate insurance for the Fund. She noted that the actuarial evaluation of the Fund had indicated a surplus. That was, she was told, a consequence of the strengthening United States dollar. Currency exchange rates were unpredictable and volatile, so participants should not be overly excited by the modest surplus.
Fifth Committee - 12 - Press Release GA/AB/3258 21st Meeting (PM) 6 November 1998
Uganda was disappointed that, rather than finding a consensus response, the Board had voted to change the interest rate in determining lump sum computations of periodic benefits. It was also disappointing that the Board had discarded the spirit of consensus to recommend changes on the cost-of- living threshold. Those matters should remain under review.
Uganda shared the views of the Committee of Actuaries that current contribution rates should be maintained, she said. No attempt should be made to reduce contributions or change features until a pattern emerged in future valuations. She was pleased to note positive investment returns and thanked the Investment Committee and the advisors. The established criteria for the investment strategy should remain, and she supported diversification of assets. Uganda also accepted the cost-sharing arrangement as presented in the concept paper and took note of the need for a new accounting system. It was imperative that the new system be fully operational by 1999. On proposals regarding the post levels of the Chief of the Investments Management Service and the Secretary of the Board, Uganda was persuaded that managed investments had grown in size, scope and complexity, and therefore supported the proposed reclassification and also the new nomenclature for the Secretary of the Board.
She said she understood that one reason why the World Trade Organization (WTO) was withdrawing from the Pension Fund was because it could not attract the best resources if it were in the common system, due to low pay and less attractive incentives. The same Member States owned the WTO as owned the United Nations, although the constituencies might be different. If the pay was insufficient to attract the best for the WTO, the same should apply to other organizations of the common system. That double standard was inexplicable, and a policy of "commonality without uniformity" should be avoided. In response to the withdrawal, it was important for the General Assembly to set conditions for admission of organizations to the Pension Fund and conditions for withdrawal. Uganda believed some sanctions for withdrawal were appropriate.
* *** *