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Viewing cable 07USUNNEWYORK199, UN: CONDITIONS OF SERVICE AND COMPENSATION FOR

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Reference ID Created Released Classification Origin
07USUNNEWYORK199 2007-03-13 14:27 2011-08-26 00:00 UNCLASSIFIED USUN New York
VZCZCXYZ0074
PP RUEHWEB

DE RUCNDT #0199/01 0721427
ZNR UUUUU ZZH
P 131427Z MAR 07
FM USMISSION USUN NEW YORK
TO SECSTATE WASHDC PRIORITY 1503
UNCLAS USUN NEW YORK 000199 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: UNGA AORC KUNR
SUBJECT: UN: CONDITIONS OF SERVICE AND COMPENSATION FOR 
NON-SECRETARIAT OFFICIALS 
 
1. ACTION REQUEST: See paragraph 16. This is an action 
request. USUN requests instructions for upcoming negotiations 
in the Fifth Committee. 
 
2. SUMMARY:  As requested by General Assembly resolution 
A/59/282, the Secretary-General (SG), in his report A/61/554: 
Conditions of service and compensation for officials other 
than Secretariat officials, presents  proposals for 
remuneration and other conditions of service for members of 
the International Court of Justice (ICJ), and judges and ad 
litem judges of the International Tribunal for the Former 
Yugoslavia (ICTY) and the International Criminal Tribunal for 
Rwanda (ICTR).   The proposals include:  a mechanism of 
remuneration based on market exchange rates and local retail 
price fluctuations, protection of pensions in payment to 
former judges and their survivors and increases to other 
conditions of service, i.e., education costs, special 
allowance, travel and subsistence.  The follow-up 
Administrative Committee on Administrative and Budgetary 
Questions (ACABQ) report (reference A) provides a detailed 
analysis of the SG's proposals, revealing the SG's flawed 
assumptions and recommending elaboration of alternative 
methods for adjusting remuneration and addressing other 
matters. Regarding the longstanding question of the disparity 
between retirement benefits of the members of the 
International Court of Justice and the judges of the ICTY and 
ICTR, the ACABQ offers background but no opinion and states 
this matter should be decided by the General Assembly. 
 
3.  Financial implications of the SG's proposals requesting 
approval of increases in the annual salary, an increase in 
the president's allowance, increases in the costs of 
educating children and additional pension payments for former 
judges and the widows of the judges of ICJ and the judges of 
the ICTY and ICTR are estimated at $2,186,500 for the 
biennium 2006-2007.  END SUMMARY. 
 
4. REMUNERATION: Article 32 of the International Court of 
Justice provides that the General Assembly shall fix the 
salaries and allowances of the members of the Court and that 
they may not be decreased during the term of office. Per 
Security Council adoption of relevant ICTY and ICTR statutes, 
the terms and conditions of service for ICTY judges are the 
same as those of judges in the ICJ, and the terms and 
conditions for judges in the ICTR are the same as those of 
the ICTY.  Currently, a floor/ceiling mechanism, with rates 
set at 4 per cent below and 4 per cent above the average 
exchange rate of the previous year, is applied to the 
salaries of the Members of the ICJ and the Judges. 
 
5. During the 59th GA, the SG proposed to increase the 
judges' annual salaries to $177,000.  At that time, ACABQ 
supported the increase, but expressed a number of concerns 
regarding the current system, which is based on the 
floor/ceiling mechanism put in place during the 48th GA. 
ACABQ recommended during the last review that the SG be 
requested to submit proposals for an alternate system to be 
considered during the 61st GA.  The GA made such a request in 
resolution 59/282, and decided, as an interim measure, to 
increase the annual salary of the members of the Court and 
the judges of the Tribunals to $170,080, pending its decision 
on the report requested. 
 
6. In the report under consideration, the SG recommended 
replacing the floor/ceiling mechanism with a new mechanism 
based on a net base salary with a corresponding post 
adjustment amount per index point equal to 1 per cent of net 
base salary at each level and step of the salary scale 
(similar to the one that pertains to salaries of UN staff in 
the Professional and higher categories).  Based on current 
post adjustment multipliers for the Netherlands and the 
United Republic of Tanzania and the current salary of judges, 
this mechanism would yield an annual remuneration (base 
salary plus post adjustment) of $255,460 for judges serving 
in The Hague (14% increase) and $235,731 for judges serving 
in Arusha (38.6% increase).  The SG highlights that this 
approach would be administratively simple and respond to the 
GA's request in its resolution A/RES/59/282 for the 
establishment of a mechanism of remuneration based on market 
exchange rates and local retail price fluctuation that would 
limit the divergence of such remuneration from that of 
comparable positions of seniority with the UN. 
 
7. The ACABQ report noted that this proposal, which uses the 
current net remuneration as the base salary, unduly inflates 
the remuneration calculated under a post adjustment system, 
since the current net remuneration already includes a 
cost-of-living component.  ACABQ recommended elaboration of 
alternative methods for adjusting remuneration according to 
market exchange rates and movement of the local 
cost-of-living index with a view towards protecting the level 
of the remuneration to be presented to the GA at its 62nd 
session. 
 
 
OTHER CONDITIONS OF SERVICE 
 
8. EDUCATION GRANT: The SG recommended that any decision 
taken by the GA at its 61st session to update the levels of 
the education grant or changes in the provisions regarding 
disabled children be extended to the members of the Court and 
the judges of the Tribunals.  Although ACABQ supports in 
principle an increase in the education grant, ACABQ believes 
that all conditions of service should be considered together 
as part of the periodic review carried out by the GA and not 
linked to any developments with regard to staff. 
 
9. SPECIAL ALLOWANCES: The SG proposed that the special 
allowances for the Presidents of the ICJ and the two 
tribunals be increased from $15,000 to $20,000 and the 
Vice-Presidents' allowances from $94 a day to $125 a day. 
ACABQ recommended against the proposal, which it believed was 
not justified based on real needs and expenditure patterns. 
 
10.  TRAVEL AND SUBSISTENCE REGULATIONS:  The Registrar of 
the ICJ has proposed, and the SG and ACABQ agreed, that the 
Travel and Subsistence Regulations for assignment grants 
should be reviewed and updated to conform to current 
standards of the Organization. 
 
11. RETIREMENT BENEFITS: The SG recommended that the pension 
benefits of the judges of the Tribunals and of the judges of 
the Court be brought once again to the attention of the GA 
for its consideration since the GA is the sole authority to 
determine the conditions of service of the judges. 
 
12. PENSIONS IN PAYMENT: In April 2004, the Registrar of the 
Court transmitted a letter to the Secretariat expressing 
concern that the level of pensions for judges and surviving 
spouses are not protected in value since they are set in U.S. 
dollars and then converted into a foreign currency.  After 
reviewing the mechanisms used by the ICSC (floor/ceiling) and 
the UNFSPF (two-track system) as suggested by ACABQ, the SG 
decided these mechanisms were too complex for the 
administration of the 50 pensions currently being 
administered.  Instead, he proposed a 36-month average 
exchange rate.  Under this system, members of ICJ and the 
judges of the Tribunals would be given the option of having 
their pension benefit converted from U.S. dollars to a local 
currency using the 36-month average exchange rate established 
by UNJSPF applicable to the country or zone considered.  A 
judge in receipt of a pension or a survivor in receipt of a 
pension benefit would be given the opportunity to request, on 
an annual basis, at six-month intervals, that the monthly 
pension benefit in U.S. dollars be converted.  ACABQ 
recommended that this proposal be adopted, on the 
understanding that retirees and their survivors would be 
given a one-time option to request conversion of their 
pension into another currency, rather than on an annual basis. 
 
13. FINANCIAL IMPLICATIONS: The total cost of the proposals 
contained in the SG's report, not including the revisions 
suggested by ACABQ, are estimated at 2,186,500 dollars for 
the biennium 2006-2007. 
 
14. NEXT COMPREHENSIVE REVIEW:  Should the GA decide to 
revert the three-year review cycle, the next comprehensive 
review by the Assembly would be undertaken at its 
sixty-fourth session, in 2009. 
 
15.  ACTION REQUEST:  The Fifth Committee has completed its 
formal and begun its informal consultations on Conditions of 
Service. Preliminary negotiations on a draft resolution began 
March 7.  USUN requests instructions prior to the start of 
these negotiations. 
 
WOLFF