FORMER FAO AND OTHER UN STAFF ASSOCIATION FFOA

FFOA/GA/2012/03

≈ PROVISIONAL REPORT

≈ Forty-first Session of the General Assembly

Wednesday 25th May 2011 at 09:45 hours Italian Conference Hall, IFAD Headquarters

≈

1. Opening of the Forty-first Session of the General Assembly

The President of FFOA, Mr Anton Doeve, opened the session at 09:45 hours with the following address: Respected guests, members of FFOA, dear friends and all those who, with their presence, enhance the significance of this General Assembly, I warmly welcome you all and thank you for attending this meeting.

As you may recall, when opening the General Assembly in 2008 we commemorated together the first centenary of the opening, here in Rome, of the International Institute of Agriculture, which was the forerunner of FAO. Today, instead of recalling what happened a century ago, I would like to announce a much more recent commemoration, one that will take place this year in fact. This year, dear friends, our own Association, the FFOA, has reached the first forty years of its existence! In 1971, with the consent of the then Director-General of FAO, Dr Addeke Hendrik Boerma, our Association was created. Since its creation took place during several meetings of the founding members of FFOA, the exact date cannot be determined with absolute certainty. Therefore, we could, in fact, be having a birthday party on every day of this year! The first Chairman of the FFOA Steering Committee, as it was then called, was Mr Abensour, who joined FAO on 20 January 1950! The Executive Committee has created a Working Group to examine the possibility and feasibility of organizing an encounter of the veterans and giving them the opportunity to tell their story. The details will be published by electronic mail and in the Newsbrief which will include the possible involvement of the younger generations.

So much for the past. We all, as we are sitting here, have of course many more yesterdays than we have tomorrows and, who knows, whether the same may also apply to some of our esteemed guests who certainly are the youngest of those present here today. However, since each yesterday is followed by a today which, in turn is followed by a tomorrow, we should be looking towards our future which increases its value each day, precisely because there is less of it. And in our future we will rely more and more on the assistance and services of the two pillars of our daily existence which are represented here today and will, later on, answer any questions we may have, namely the United Nations Joint Staff Pension Fund and the Social Security Service of FAO whose representatives I hereby welcome most warmly and would like to thank most cordially for having taken the time to join us today. And then, there is a third entity, which could not be represented today, but on which we pensioners rely more and more as our days advance, and that is Vanbreda which settles our medical claims promptly even though we do not always agree with its calculation of what we believe we are entitled to. In order to allow you to ask the Vanbreda representative why they calculate your claims their way rather than your way, the Executive Committee has organized an Information session with the Vanbreda representatives which will take place on 2 November. You will receive an invitation in due course. However, that meeting will also be a welcome occasion

Page 2 of 12 pages to be accompanied by whoever will, one day, be what in UN jargon is called your “surviving spouse”. How many of you have explained to your future “surviving spouse” how to fill in the Vanbreda claims form and where to find it on the websites of Vanbreda or FFOA? Quite often I receive surviving spouses in my office who are desperate because their deceased spouse never bothered to explain to them how to go about finding and completing the claims form, even the printed version which is available in the FFOA Office, let alone the electronic ones. I praise one of our members, who is also a friend of mine, who told me some time ago that he had explained to his wife how to go about it and that she would prepare their medical claims for the coming year. And how many of you have explained to the one who, most probably, will survive you what to do to inform the appropriate office of your previous UN Organization and the UN Pension Fund that the “inevitable” last day of their spouse had come and gone and how to claim their share of your pension? These are matters that we should not ignore since their importance increases the longer we live and, therefore, the Executive Committee is going to prepare guidelines how to solve these questions which will be mailed to you and uploaded on the FFOA Website. I have just now decided that we should do this, so don’t tell the other members of our Committee about what is in store for them! Yesterday I counted the number of active members of our Association and the teller stopped at 2100. However, that number could be greater if every annual member would pay their annual membership contribution on time. Life members have, of course, paid for what they considered to be their life span but if they are lucky enough to have outlived that period, perhaps they might wish to tempt fate once more? FFOA is now and has always been the third largest Association of UN Pensioners belonging to FAFICS, the Federation of all UN Pensioners Associations, and it was one of its founding members. I therefore appeal to all of you to allow us to maintain that position and safeguard it for the future generations of retired UN staff members! Let us not forget that retirement is also the beginning of a new phase of our lives, that it is like re-awakening in a different land where new values and certainties exist which shape our thoughts and the importance we give to the different tasks we perform. It is probably the only period left to us when we can start “doing our own things” the way we always wanted to but never were able to or had time for. It can be a period of self-discovery when we find that we possess abilities to perform tasks we never expected to find in ourselves and which bring to life new aspects of our personalities we never suspected were there. And that, dear friends, is where the undiscovered wealth of our future lies, the power to explore our hidden strengths and talents, the freedom to do and realize what we always wanted to achieve. The future of one of our members is the concern of all our members because we all belong to the same family of Senior Citizens of the United Nations and should look after each other when needed. I wish for all of you a secure, safe and strong future for many more years to come! Now, it is my pleasure to open the 41st Session of the General Assembly of FFOA. Thank you!

2. Establishment of a quorum and announcement of the number of proxies

Mr Doeve announced that a quorum was present in accordance with the Association's Statutes. About 100 members were present. 17 proxies were officially held by 9 members.

3. Nomination of the Rapporteurs, announcement of the Interpreters and the Photographers

Mr Maurice Purnell and Mr Bronek Szynalski were nominated rapporteurs. Ms Marta Bochicchio and Ms Gabriella Salavato provided simultaneous English-Italian interpretation. Mr Alex Van Arkadie made a photographic record of the meeting.

4. Election of the Presiding Officer of the Forty-first Session of the General Assembly

Mr Doeve proposed that Mr Abdou Ciss, a former member of the FFOA Executive Committee and former senior official of IFAD, should chair this Assembly, and he was elected by acclamation. Mr Ciss then took the Chair, thanked the participants for the confidence in electing him as chairperson of the Assembly and welcomed Mr Bernard Cochemé, CEO of the UN Pension Board and other guests.

5. Adoption of the Provisional Agenda

As no proposals for changes to the Provisional Agenda had been received, it was adopted.

6. Draft Report of the 40th Session of the General Assembly held on 26th May 2010

The Draft Report had been circulated in October 2010 with Newsbrief 77. It was adopted without comment by the General Assembly under resolution FFOA/GA/2011/07/A.

Page 3 of 12 pages 7. Address by the Representative of the Director General of FAO

Mr Tony Alonzi, Director CSH, spoke on behalf of the Director-General of FAO: Chairperson, Ladies and Gentlemen, it is a pleasure and an honour for me to be here with you today to

address the Annual Assembly of FFOA. It is a pleasure and an honour for me to be here with you today to address the Annual Assembly of FFOA. I should like to thank the Executive Committee of FFOA for their kind invitation. On behalf of the DG, I would like to express my best wishes for a successful 41st Session of your Assembly.

Your Association unites former civil servants from FAO, IFAD, WFP and a number of other UN Organizations represented in Rome. The occasion of the Annual Assembly provides the opportunity to former UN staff to meet and discuss issues of common interest. Pension and Medical Insurance

Let me now firstly turn to some of the social security issues that might be of interest to you. In the course of the meeting, Mr Cochemé, CEO of the UNJSPF and Mr Breschi, Chief, Social Security will give you a detailed presentation on issues related to the pension fund and the medical schemes.

Regarding the Pension Fund, I am pleased to announce that the latest figures available show that the assets of the Fund now stand in excess of USD 44 billion and that investments are continuously outperforming the policy benchmark.

I am aware as a staff member of the Organization of the concern amongst retirees of the dollar exchange rate fluctuation and your concerns are being tabled for discussion at the next UNJSPF Board meeting to be held in Geneva in July 2011.

Social Security has, during the year, provided constant assistance to retirees and will continue to do so for years to come.

CSHS has also assisted the UNJSPF in obtaining the required information to define the increase due to retirees to reflect the Cost Living Index for Italy. Those of you who have chosen the Local Track for Italy will be receiving a 2.8% increase in the Euro pensions in July 2011 with a retroactive date of 1 April 2011.

Despite being affected by the strong fluctuations in USD/EUR exchange rates that characterized the last year, the Medical Insurance Plan has performed better than expected thanks predominantly to the various cost containment measures put in place in recent years which are consistently reviewed and improved. The Plan was able to retain the same level of premiums payable to insurers for both the US Dollar as well as the Euro Scheme, whilst the premium collected from participants has been increased by 1.5% in order to further reduce the amount of profit share funds used to subsidize premiums. This was done in order to safeguard Profit Share Funds for the future, a clear commitment to the long term sustainability of the Plan.

Whilst the pace of medical inflation in Europe and the USA appears to have slowed down, at least for the time being, the near future will present challenges to the Plan as the strong medical inflation that characterized Europe and the US in the first decade of the 21st century is now envisaged to spread towards emerging economies.

Many of you continue to have a keen interest in the activities of our Organization, and I should like to take this opportunity to update you on some important developments that have taken place in FAO since your last meeting in May 2010.

(i) Soaring Food Prices

The situation in the agricultural commodity markets needs close monitoring. Supply shocks associated predominantly with weather events during 2010 affecting wheat and maize have caused the value of the December FAO Food Price Index to rise throughout the second half of 2010. By the end of 2010, prices soared to what they were at the peak of the 2007/08 food crisis as sharp increases in the prices of sugar and oilseeds added to the increases in wheat and maize prices. In March 2011, the index dropped for the first time after 8 months of continued price spikes and since then prices remain virtually steady. Nevertheless the current situation gives cause for concern.

The impact of price volatility and the price upswings falls heaviest on the poor, who may spend as much as 70 percent of their income on food. High food prices reduce the quantity and the quality of the food they can consume, worsening food insecurity and malnutrition and pushing more households below the poverty line.

Action is needed on many fronts. Increasing information on global markets and enhancing transparency will reduce the incidence of panic-driven price surges. FAO is playing a central role in this. FAO can help

Page 4 of 12 pages promote increased international trade policy coordination in times of crisis that can also reduce volatility and ensure that global markets can be still a source of food. In the shorter term, strategic emergency food reserves can ensure food security. By exploiting synergies with well-designed and well-targeted consumer safety nets they can reduce the exposure of vulnerable people to volatility. Food security in hard-hit low income food importing developing countries, which face food import financing difficulties, can be ensured by internationally coordinated and market-based financing mechanisms. But in the medium and longer term only investment in developing countries’ agricultural sectors will result in sustainable increases in productivity, healthy markets, increased resilience to international price spikes and improved food security.

In the 2009 World Summit on Food Security, FAO called for investment in agriculture to be increased to produce more food where the poor and hungry live. For the majority of poor countries a healthy agricultural sector is essential to reduce vulnerability to international price volatility, to overcome hunger and poverty and to also provide the platform for overall economic growth.

(ii) International Year of Forest 2011

FAO joins forest organizations around the world in celebrating the International Year of the Forest: Forests for people.FAO will participate in a broad range of activities, including hosting international symposia and conferences, engaging in communication and outreach initiatives.

Beyond its own work, FAO encourages forest-related organizations around the world to promote the year through independent initiatives and supports them with the information available on the FAO Forests 2011 website and communication toolkits.

(iii) FAO Renewal and Progress in the implementation of the IPA

In 2010 we continued to make good progress with FAO renewal, to reshape the way we approach and manage our work. FAO’s Members have supported us by fully funding the Immediate Plan of Action (IPA) in this biennium.

2010 saw the start of a number of large and complex IPA projects, and I am sure if you were to work in FAO today you would notice some big impacts – perhaps due to the new Performance Evaluation Management System or maybe due to the introduction of results based planning, or perhaps with staff in the decentralized offices using their increased delegations from Headquarters in carrying out their daily work.

Such major change programmes, of course, also carry risks and, as we progress down this challenging but unique opportunity for renewal, we will come across many obstacles. During 2010 an external risk assessment was carried out to help us understand the magnitude of the task and the risks inherent in such a major change programme. The assessment concluded that in its first two years, the IPA has delivered significant results in areas such as Results Based Management, Human Resources, Decentralization, and Culture Change. It also warned that the IPA is a highly ambitious and interdependent programme of organizational change. We were of course also reminded that the scale and complexity of this programme are unprecedented in the UN.

(iv) Progress in PEMS implementation

Moving to HR reform, the Performance Evaluation and Management System (PEMS) was successfully rolled out for all FAO staff in 2010. Thanks to the effective participation by staff, we now have in place this essential tool of human resource management and we look forward to PEMS becoming further embedded in the new culture of FAO, to enable stronger connection, dialogue and understanding between staff and their supervisor.

Chairperson, ladies and gentlemen, FFOA acts as FAO’s “partner” in providing valuable information and assistance to you. Over the years, the collaboration between FFOA and the Organization has been excellent and we would like to assure the Association that FAO will continue to cooperate with FFOA for the benefit of the retiree community.

In conclusion, I would like to thank you all for the contributions you have made during your years of service with the Organization and for your continued interest and support. Thank you for your attention.

8. Mr Ciss thanked Mr Alonzi for his statement and FAO for the collaboration and support during the year, which have been very helpful to the Association. Mr Doeve also appreciated the nice words and expressed the willingness of FFOA to help where possible.

Page 5 of 12 pages 9. Address by the Representative of the Executive Director of the World Food Programme

Ms Nanayaa Nikoi , Chief, Human Resources Staff Relations, made the following statement on behalf of the Director of the Human Resources Division, WFP:

Good morning. It is a pleasure to be here today. WFP Executive Director Josette Sheeran sends you her greetings and regrets that she could not attend today. For those of you who retired from WFP, I bring you very warm greetings from WFP staff posted around the world. As many of the WFP colleagues may know, this is a special time for the World Food Programme. Fifty years ago, this year, WFP was created.

In December 1961, the General Assembly created WFP as the mechanism charged with helping nations protect lives and livelihoods by ensuring access to food for those most in need. Today, our mission is as critical as ever, in a world where risk is the new normal when it comes to food security. After many decades of increasing supply and declining food prices – which helped halve the proportion of urgently hungry in the world – we have seen an unprecedented volatility in both supply and food prices leading to historic levels of hunger among the most vulnerable. I want to share with what WFP is doing in the fight against hunger.

Fifty years ago, our tool box was simple. We moved food from lands of plenty to places of want. We still do that and make no mistake this saves lives as we saw in Haiti, Darfur and beyond. But we also have a few other tools in our tool box: tools enabled by learning from past evaluations and identifying best practices and tools that are enabled by new technologies of a new century. This more robust tool box allows us to intervene in ways that help protect, and even stimulate, local food markets, allowing quicker recovery. This is why our mantra under our new strategic plan is simple and twofold. One, the right tool at the right time in the right place. Two, the right food at the right time in the right place. What is key here is that one size does not fit all when it comes to which tool is best suited or which food is most appropriate.

Let me share with you some of these tools in action. In Haiti our program team quickly transitioned from food distribution to targeted Food-for-Work programs, helping Haitians to rebuild their lives and communities with a combination of cash and food. In Niger, as part of our response to the Sahel crisis, we reached five million people with protection rations and supplementary feeding for children under five. In Palestine, beneficiaries are able to use a card, which reads “bon appétit” in Arabic, to purchase nutritious food at local markets. All the products in this programme must be produced locally. Last year, as we deployed this programme, it resulted in a US$60 million investment in the local economy, while meeting urgent food needs; a win-win situation there. Such types of programmes are now deployed in over 25 countries. Purchase for Progress is also now deployed in more than twenty nations. So, just as we are being called on in an unprecedented way to respond to hunger and food insecurity, we are also engaging in one of the biggest transformations WFP has gone through. So far this year looks to be no less challenging than last.

Our Executive Director has been telling the world to be on red alert, with nearly a billion hungry people and tens of millions being added due to increasing food prices, natural disasters and political instability. Food prices are surging, hitting historic levels, seemingly with each passing week. That means that there can be more hungry people to feed at the same time that costs are rising. The World Bank reports that already some 44 million people have been cast into extreme poverty due to rising food prices.

There is also political turmoil as we can see from the recent events in Tunisia, Egypt, Libya and elsewhere. Natural disasters are also increasing – as the devastating earthquake and tsunami in Japan showed. Events like this – and last year’s earthquake in Haiti, floods in Pakistan or drought in Niger – used to occur once in a decade. Now the world struggles to deal with many mega-emergencies each year. In fact, OCHA says 70 percent of disasters are now climate related, up from 50 percent two decades ago; and the cost of responding has increased ten-fold. These events demonstrate that we are living in a world where risk, volatility and unpredictability are the new normal. The world has changed in the last fifty years since WFP was created. It is now changing faster than ever. Each of you has been part of this change and we rely on your continued dedication to food security.

10. Mr Ciss thanked Ms Nikoi for the informative speech and the impressive work described to aid hungry people.

Mr Alan Prien speaking for Mr Giorgio Eberle said that large savings had been made by the local pharmacies in FAO and IFAD and hoped that WFP would soon establish one as well.

Mr Ciss then introduced Mr Michael Goon as an old colleague and a valued and helpful friend to FFOA.

Page 6 of 12 pages 11. Address by the Representative of IFAD

Mr Michael Goon spoke on behalf of IFAD President Kanayo F. Nwanze. Mr Chairman, colleagues, ladies and gentlemen,

Good morning to all of you. Thank you Mr Ciss for the introduction. On behalf of IFAD’s President Kanayo F. Nwanze, who is on mission travel and cannot be here with

you today, let me extend a very warm welcome to all of you to IFAD. It is an honor to speak to you today on the occasion of the general assembly meeting of FFOA. For me personally, it is a pleasure to introduce myself and interact with colleagues from across the UN system. I am Michael Goon from Malaysia. I am the interim Head of the Corporate Services Department until we recruit the Head of CSD.

I have only been with IFAD a short time, only 2 months now, but I am already aware of the service, assistance and advice FFOA provides to our former staff members relating to their retirement. Since 1971, even before IFAD was created, your association has fostered continued collaboration between members and their organizations, and equally important, among association members themselves. Your commitment to the purposes and activities of the United Nations is as imperative as ever.

Mr. Alonzi from FAO has provided all of you an update of the performance of the pension fund. I shall focus my address on what is happening at IFAD today.

You are concerned, as I am, about rural poverty, food security, climate change and the social and political implications of instability. These are not just “key issues” or “priority areas”; they are facts, realities that determine the lives of millions of people every day.

In recent months, we have seen graphic demonstration of the social and political cost of poverty and precarious food security. Many believe that the current food price spike was a contributing factor to the revolutions that are currently taking place across the Middle East and parts of Africa. This is a stark reminder that when people can’t afford to eat, they become desperate.

We all know that this food price crisis did not happen overnight. It was the result – in part – of nearly three decades of declining support for agriculture, both nationally and internationally. Ample reason for desperation. But, luckily, there is also substantial cause for hope. Since the food price crisis, there has been a renewed commitment to agriculture by developing and OECD countries. This is very promising. At IFAD, we believe that if we are going to make progress in our fight to defeat poverty we must make three additional steps. First, we need to reset the development community’s priorities.

What do we mean by this? We mean that we must maintain the renewed focus on developing country agriculture while adapting our approach to reflect new realities and new challenges. We must not lose sight of the imperative to help smallholders, who struggle to feed their families, manage risks. These risks are on the rise from price shocks, climate change, and market forces that favour large producers. Second, let us lift our sights.

It is time to recognize that the world’s 1.5 billion people who depend on small farms are entrepreneurs. To succeed, it is imperative that we extend our reach to more of these small business people who are currently excluded or underserved by essential services, information, and markets. My third and last point is for us to raise our game.

By that I mean that development cooperation needs to have a more forward-thinking orientation. A reversal of the declining trend in aid to agriculture is certainly needed. But this is about more than a change of heart; we need a change of outlook and practice. Aid to developing country agriculture is an investment in the future – in global food security and global economic growth.

At IFAD, through our Change and Reform Agenda, we are improving our business model so that we can scale up successful approaches to sustainable smallholder development with national and international partners. As former staff members, you know that challenges that lie ahead. You also know the rewards all of our assistance can yield. We ask for your continued support and commitment to ensure we achieve these noble aims.

On behalf of President Nwanze, I would like thank you again for giving me the opportunity to address you here today and to share with you IFAD’s focus and future directions. Please feel free to let us know how best we can support you.

I wish you a fruitful meeting and continued success in providing such valuable services to our retirees. Thank you.

Page 7 of 12 pages 12. Mr Ciss thanked Mr Michael Goon for his presentation, and for numerous kinds of support to FFOA. Without such support it would be difficult for FFOA to survive. Mr Doeve added his thanks for the assistance provided and for the hospitality for this General Assembly. FFOA cannot afford much so it welcomes help.

13. Statement by the Representative of the Staff Bodies

Mr Mauro Pace, Chairman of FICSA, spoke on behalf of the Staff Representative Bodies.

Mr. Chair, colleagues and friends,

It is both an honour and a privilege for me to be here today to address this distinguished audience. Unfortunately, neither Margaret Eldon, Secretary General of UGSS, nor Christopher Pardy, President of AP-in-FAO, were able to join this 41st Session of your General Assembly, due to unavoidable last minute priorities; in apologizing for the inconvenience, they asked me to represent them today.

I wish first to reiterate the deep interest of the Staff Representative Bodies in the continued and effective dialogue with our friends from FFOA. We will not emphasize enough the importance of this cooperation between colleagues: although for administrative purposes a distinction between “participants” and “beneficiaries” of the Fund is unavoidable, in our view there is a continuity between the pre- and post- retirement phases of our working lives. Sooner or later, we shall join your group: your feedback, your issues, your requests become our issues.

During the many years of cooperation with FFOA, both inside and outside our Staff Pension Committee, we appreciated the unique value of your experience. Most of your constituency devoted many years to serve the noble mandate of the UN. No one else knows better than you the ins and outs of our Organizations, the realities of day-to-day work life, at headquarters as well as in field locations.

Your views represent for us a continuous reality check. Your assessment of pension benefits or medical coverage is indispensable for us to shape our policies in the Pension Board or the ICSC and, obviously, in the Staff Pension Committee. Based on your views, we pursue your issues on the impact of cost of living increases (for example, as you may know, the staff representatives fully supported the elimination of the last 0.5 percent reduction in the first cost-of-living adjustment, as well as the continued monitoring of purchasing power of small pensions).

We are confident that the fruitful synergy among participants, beneficiaries and staff representatives will continue in July this year at the next Board: even a superficial look at the agenda of the 58th Session of the Board will tell to what extent the issues under consideration are intertwined: how could we discuss the investments, or the review of pensionable remuneration, or the effects of currency fluctuation, without keeping in mind that all these issues will eventually impact on the status of our Fund and the benefits it has to secure for the present and the future?

Let’s face it: we are still living and suffering the effects of one of the worse global financial crises of the last century: virtually, no area has gone untouched, be it in the so called developed or developing world. However, we believe that, thanks to our mutual support, we shall be able to overcome these difficulties, in order to safeguard the principles on which our social security scheme is founded and - although it may sound a bit of a dream today - to improve the quality of life of the generations to come.

Colleagues, let’s continue working together for the good of the common system, its staff and the people we are committed to serve. Thank you.

Mr Ciss thanked Mr Pace for his statement. The associations work closely together already, especially on pensions and medical insurance and this interaction will intensify in future.

14. Report of the Executive Committee Mr Doeve updated the report on work accomplished which had already been circulated with the General Assembly documents. A count showed that there are now 2100 members. Those who do not pay their subscriptions are suspended after two years. We have to consider whether FFOA is good enough in what it provides particularly to those outside Italy. He would welcome suggestions for improvements.

15. Report of the Association’s Financial Transactions (Statements A – E) Mr Gianni Monciotti, Treasurer of the Association, presented the Financial Report for 2010 showing a

slight increase in enrollments compared with 2009, however with more life members enrollments than in the year before; voluntary contributions diminished, and regrettably, none of the emergency loans granted were reimbursed. The treasurer stressed the importance of such repayments in order to have the possibility to

Page 8 of 12 pages eventually help other members in need. FFOA’s total income amounts to Euro 30,527.40. As far as expenditures are concerned, we have been sufficiently virtuous and this is also thanks to the factual contributions of WFP and IFAD, which print (WFP) or dispatch (IFAD) free of charge Newsbriefs and General Assembly documents in English and Italian.

The financial status shows on 31st December 2010 a balance of €34,204.12 and our investments have performed better. The treasurer informed the audience that the Association’s accounts have been certified by the Auditors and asked for the approval of the election of the two new Auditors for 2011, namely Messrs. Berndt Käss and John McGhie. Finally, the treasurer presented the proposed budget for 2012 following a prudent and conservative line of action that distinguishes the Association. Mr Ciss thanked the treasurer. There were no statements or questions for clarification and the Assembly approved by acclamation the financial report for 2010, the financial status on 31 December 2010, the proposed budget for 2012, and the appointment of the auditors for the 2011 accounts, Mr Bernd Käss and Mr John McGhie, under resolutions “C”, “D” and “E” of document FFOA/GA/2011/06. 16. He then gave the floor to Mr Bernard Cochemé

Mr Bernard Cochemé, the Chief Executive Officer of the United Nations Joint Staff Pension Fund (UNJSPF), was accompanied by Mr Frank de Turriff, Chief of Operations, and Mr Alan Blyth (Chief of the Geneva Office). Aided by a PowerPoint presentation they provided an account of the Pension Fund activities, concentrating on operations, investments, and the actuarial balance. You have already read some of it in the Annual Letter 2011 from the CEO. The Pension Board in 2010 considered 40 items. The UN General Assembly approved the recommendations showing its confidence in the Pension Board. Operations have increased 63 per cent in the last 10 years and deals with 121,138 participants. Beneficiaries have increased 33 per cent in 10years and total 63,830. The increase in beneficiaries in future is foreseeable – the baby boomers are retiring. Payments include 44 per cent in dollars, 33 per cent in euros, 16 per cent in Swiss francs, and 7 per cent in other currencies. The value of the investments has been volatile, with a fall in 2008 and recovery by March 2010 to $44,436 million, and in April 2011 was $44,436 millions. There has been a change in investment policy, with equities in 2008 at 52 per cent and in 2010 at 65 per cent, while fixed interest investments fell from 33 to 28 per cent. The Fund has outperformed its benchmark comparator in every year but 2010. Over 25 years the return has been 9.0 per cent and over 50 years 8.4 per cent. The average return has been a nominal 6.0 per cent and a real 4.1 per cent. That means the Fund is doing better than the 3.5 per cent aim. The actuarial valuation showed a surplus for six years but in 2010 a slight deficit of 0.38 per cent. This was the result of the lower investment results and the allowance for increased longevity which caused a 2.0 per cent difference. Staff members work for an average of 22 years and are pensioned for 30 years. The actuarial balance is projected for 60 years. The funding status is satisfactory; it is 91 per cent if indexation is included (a good ratio compared to comparable schemes). This is a conservative estimate as no increase in participants is included. Payments from the Fund total $1.97 billion with $2.03 billion received. This is like pay-as-you-go and means there is no need to withdraw money from the Fund. There is also a $1.22 billion investment income that is re-invested. This situation is very special for a fully funded pension fund. Overall this is a very satisfactory situation and with the operations being steadily improved. The Pension Board will meet again on 11-15 July 2011 in Geneva, with a forty-item agenda. A series of booklets are available on the internet or on request, giving information of value to pensioners, including the latest on divorce.

17. A. Statement by the Head of Social security

Mr Marco Breschi, newly appointed Head of Social Security and Director of CSHS, and of the FAO Pension Committee, described the activities and mentioned what a great team he had in Social Security. There are 16000 staff and 8000 dependents to service. A PowerPoint presentation dealt mainly with medical matters. Various measures have been taken to help reduce medical insurance costs. An important part of that is claims cost containment, for example the walk-in pharmacy in FAO. Mr Ciss thanked the speakers for the excellent description of the main aspects of the Pension Fund and the

work of the Social Security Service in FAO. He called for questions from the floor.

Page 9 of 12 pages 18. Question and answer session

Mr Anton Doeve said that some national governments have increased the age at which workers retire, and asked if it would be advantageous to consider this for the UN staff. Mr Cochemé said that it is difficult to compare the two because the national pensions depend on continuous contributions. The Pension fund has to consider the financial impact. We have considered two ages, with no reduction of pensions only the age of paying it. Mandatory age of retirement depends on the organizations, which can change it individually. A discussion is expected from the HLCM report at the end of the year. The Pension Fund cannot raise the age of retirement unless the organizations do, so an agreement is necessary. The last time it was done was in the 1980’s and it took ages for the General Assembly to do it. The pensions working group has suggested raising it to 65. There would be a saving of 1 per cent, which may be compared to the 2 per cent cost of increased longevity. Mr Ciss commented that this was a commonly discussed problem. The organizations and governments are not much in favour of it. Mr Purnell said that although the dual track provided some protection, many pensions were still going down in relation to the aim of providing income replacement Mr R Turrif, UNJSPF New York, replied that on the dual track the amount of euros received never decreases. It increases due to local cost of living indexation intended to keep the income replacement stable. The dual track may provide more or less at different dates of retirement. Otherwise any decrease in the euros received can only be for those on the dollar track who opt to be paid in euros. Mr Cochemé read a question submitted earlier about the possibility of bringing the pensioners appeals system up to date and easier to use. He said that an investigation had been made and the present system is considered adequate especially as appeals from Pension Board decisions can be made to the new Appeals Tribunal in the United Nations. Mr George Everett asked why the Emergency Fund dealt mainly with medical emergencies, but medical insurance is mandatory so why do such emergencies occur requiring a grant. Mr Turrif replied that medical insurance schemes have limits. The FAO medical insurance scheme will in time be fully funded and FAO will continue paying. Mr Alan Prien pointed out that the IFAD medical plan has been fully funded for several years, and the Executive Board confirms that the emergency fund is needed. Mr Guiliano Pucci asked if the Pension Fund supply certificates of the amounts that pensioners receive in case of divorce proceedings. Mr Cochemé replied that during divorce cases such information can be provided to spouses.

A FFOA member from the audience asked why pensioners on the double track could not change back to the dollar track at least once. Christians are given a second chance so why not pensioners? Mr Cochemé said that the idea of the dual track is to give protection to people with payments in a local currency. The Fund loses on this system, while pensioners have a significant gain. We are trying to help beneficiaries not to help people who want to benefit from currency fluctuations. The change from dual track to dollar track must be an option against the Fund, so the Pension Fund does not encourage that.

Ms Maria de Lourdes Costarrica asked about inheritance of single pensioners who have no dependents. Mr Alan Blythe replied that there is a residual payment that can be paid into the estate of a deceased pensioner if the base amount has not been used up.

19. Other Business No proposals had been received, so Mr Ciss requested the President of FFOA to close the meeting. Mr Doeve asked everyone to remember those less well off than us and to give generously to the traditional

collection for the old and poor at the Old People’s Home neighboring FAO. Ms Eileen Nolan, who has made the collection for 22 years, could not do it this year due to ill health. Mrs Giongyi Prien did so in her place and collected €786 at the door (only marginally less than last year). Mr Doeve reminded the Assembly that the term of the present Executive Committee ends on 31st December 2012 so there will be an election next year. Anyone who would like to join the Executive Committee for the next three years should volunteer and the earlier the better.

Page 10 of 12 pages Finally, Mr. Doeve asked the meeting to observe a minute of silence to commemorate all the staff-

members, pensioners, consultants, workers and all those who contributed to the UN activities and had passed away since the last General Assembly.

20. Closure of the Forty-first Session of the General Assembly The President of FFOA closed the Assembly at 12:45 hours.

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The Forty-second Session of the FFOA General Assembly is expected to take place on Wednesday 2x May 2012 at 09:45 hours at FAO Headquarters

Please come along and bring this report with you.

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Photographic record of the Forty-first Session of the FFOA General Assembly, 25th May 2011, which was held for

the first time at IFAD headquarters

Selected photos (Photographer: Alex van Arkadie)

Messrs Bernard Cochemé, Frank de Turrif,

Abdou Ciss, Anton Doeve, Alan Blythe

Page 11 of 12 pages

Some members of the Executive Committee:

Messrs Pace, Salvi, Marcucci, Purnell, Wickens and Ms. Novelli

Some participants

Page 12 of 12 pages

Ms. Amalia Lofaso, and Executive Committee members

Mr Giuliano Pucci and Ms Joan Smidt

Messrs Frank de Turrif, Bernhard Cochemé, Marco Breschi and Ms Kamila Guseynora