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Article 3.1 Sources of financing 1. The Fund shall be financed by contributions of the insured persons and of the organizations in accordance with the rates indicated in article 3.6, applied in accordance with articles 3.2-3.5. 2. The full cost of administration of the Fund shall be borne by the ILO and ITU. Article 3.2 Assessment in respect of officials 1. Contributions in respect of officials who are compulsorily insured under article 1.2 shall be assessed on the basis of their remuneration and any pension as defined in article 3.3, paragraph 2: in respect of such an official who works part time contributions on remuneration shall be assessed on the basis of the amount which that official would receive if he/she were working full time. 2. Contributions in respect of officials on leave without salary or with partial salary who are voluntarily insured under article 1.3(a) and officials whose service has ceased but who are voluntarily insured under article 1.3(c) shall be assessed on the basis of their last remuneration and any pension as defined in article 3.3, paragraph 2. 3. Contributions in respect of officials on secondment who are voluntarily insured under article 1.3(b) shall be assessed on the basis of the remuneration they receive from the organization to which they are seconded and any pension as defined in article 3.3, paragraph 2. 4. Contributions shall also be assessed on any earnings derived from work for the ILO or ITU by the insured person’s spouse if the spouse is automatically covered under article 1.5.5. The term "remuneration" shall include, for purposes of this article, the official’s basic salary and all allowances that are paid to him/her on a regular and continuing basis but not other payments made under the Staff Regulations. The allowances and other payments which shall and shall not be taken into consideration in calculating contributions shall be determined by the Management Committee by Administrative Rules. Article 3.3 Assessment in respect of former officials 1. Contributions in respect of former officials who are voluntarily insured under article 1.3(d) or (e) shall be assessed on (a) whichever from time to time is the higher of the following amounts:(i) the pension (as hereinafter defined); (ii) the amount of pension which the official
would have received if he/she had contributed during 25 years to the applicable
pension scheme;
(b) any earnings derived from work for the ILO or ITU by the insured person or by the insured person’s spouse if the spouse is automatically covered under article 1.5.2. For the purpose of this article the expression "pension" includes: (a) all sums received by way of periodical payments, including any cost-of-living increase and any child benefit, whether by virtue of the insured person’s own service or as a widow or widower of an official, under the Regulations of the United Nations Joint Staff Pension Fund and/or other ILO or ITU pension scheme, under the provisions of the Staff Regulations or other conditions of service of the ILO or ITU relating to compensation for employment injuries, and under any insurance maintained wholly or partly at the expense of the ILO or ITU in respect of non-service-incurred injuries;and (b) all corresponding sums received by an insured person’s spouse, if the spouse is automatically protected under article 1.5.If all or part of any such entitlement has been taken in the form of a lump sum, the amount of contribution assessable in respect of the entitlement shall be calculated as if the whole of the entitlement had been taken in the form of periodic payments. 3. Contributions in respect of a person insured under article 1.3(d) who has deferred his/her pension shall be based on the amount specified in paragraphs 1(a)(ii) and 1(b) of this article until the pension becomes payable. Article 3.4 Assessment in respect of survivors 1. Contributions in respect of widows or widowers of officials or former officials who are voluntarily insured under article 1.3(f) shall be assessed on —(a) whichever from time to time is the higher of the following amounts:(i) the pension (as defined in article 3.3, paragraph 2); (ii) the amount of pension which the widow
or widower would have received if the official or former official had contributed
during 25 years to the applicable pension scheme;
(b) any earnings derived by the insured person from work for the ILO or ITU. 2. Contributions in respect of surviving
children or secondary
Article 3.5 Contributions in respect of voluntarily protected dependants Contributions in respect of dependants
voluntarily protected under article 1.6 shall
be at a flat rate. Such rate shall be fixed by the Management Committee,
where appropriate by subgroups in such manner as to ensure that this group
of protected persons is financially self-supporting within the Fund, account
being taken of the cost experience for this group.
Article 3.6 Rates of contributions 1. Subject to paragraph 2 of this article,
the rates of contribution shall be as follows:
2. The Management Committee may from time to time prescribe minima for contributions in respect of voluntarily insured persons. 3. As an exceptional measure, as from 1 July 1987, no contribution shall be payable, either by the insured person or by the organization, in respect of a former official or the survivor of an official or former official insured under article 1.3(d), (e) or (f), if the insured person’s pension, as defined in article 3.3, paragraph 2, or the proportion of the last remuneration specified in article 3.3 or article 3.4 (as the case may be) does not exceed $4,500 per annum. This paragraph shall cease to apply as from 1 January 1989, except for persons who were subject to it on 31 December 1988. Article 3.7 Deduction and transfer of contributions 1. The contributions due, in respect of their own insurance and in respect of the voluntary coverage of dependants, from officials receiving remuneration from the ILO or ITU shall be deducted by the financial services of the organization concerned from such remuneration. 2. The contributions due, in respect of their own insurance and in respect of the voluntary coverage of dependants, from persons insured under article 1.3(d), (e) or (f) who receive a pension from the ILO, the ITU or from the United Nations Joint Staff Pension Fund (UNJSPF) shall be deducted from that pension in accordance with the Administrative Rules. 3. The contributions due, in respect of their own insurance and in respect of the voluntary coverage of dependants, from other insured persons shall be paid in accordance with the Administrative Rules. 4. If contributions due from a voluntarily
insured person are in arrears for six months, that person and his or her
dependants shall thereupon cease to be protected by the Fund.
Article 3.8 Guarantee fund and measures to ensure financial equilibrium 1. There shall be a guarantee fund the amount of which at the end of any financial year, exclusive of any sums set aside for outstanding claims for benefits, shall not be less than one-sixth of the expenditure of the Fund during the last three financial years nor exceed one-half of the expenditure of the Fund during the last three financial years. 2. If at the end of any financial year the guarantee fund exceeds the maximum provided for in paragraph 1, the Management Committee shall take appropriate steps to reduce the guarantee fund to the prescribed level by increasing benefits and/or reducing contributions on the basis of an actuarial assessment. 3. If at the end of any financial year the guarantee fund has fallen below the minimum provided for in paragraph 1, the Management Committee shall take all appropriate steps to restore the financial equilibrium of the Fund and to bring the guarantee fund back to the prescribed level by increasing contributions and/or adjusting benefits. 4. If in each of any nine consecutive months expenditure of the Fund exceeds income and at the end of the last financial year the guarantee fund did not exceed the maximum provided for in paragraph 1, the Management Committee shall, within three months after the end of the ninth month of deficit, take all appropriate steps to restore the financial equilibrium of the Fund by increasing contributions and/or adjusting benefits on the basis of an actuarial assessment. The Management Committee may, in agreement with the executive heads of the organizations, enter into such reinsurance arrangements as it deems appropriate. An actuarial review of the Fund shall be made on each occasion that, at the end of any financial year, the guarantee fund has fallen below the prescribed minimum and in any case, at least once every three years. Article 3.11 Accounts and investments The financial services of the ILO shall
be responsible for keeping the accounts of the Fund, holding its monies
and arranging for the investment of the insurance funds, in consultation
with the Management Committee. They shall provide the Management Committee
with a monthly statement of accounts of the Fund, an annual report on the
financial situation and on the investments made and such other information
from time to time as the Management Committee may reasonably require, in
accordance with the instructions of that Committee.
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