VZCZCXYZ0027
OO RUEHWEB

DE RUCNDT #0009/01 0041654
ZNR UUUUU ZZH
O 041654Z JAN 08
FM USMISSION USUN NEW YORK
TO SECSTATE WASHDC IMMEDIATE 3488

UNCLAS USUN NEW YORK 000009 
 
SIPDIS 
 
SIPDIS 
 
MATT GLOCKNER IO/MPR 
 
E.O. 12958: N/A 
TAGS: AORC KUNR UNGA
SUBJECT: UN JOINT STAFF PENSION FUND: USUN VOTES AGAINST 
ONE TIME, AD HOC, EX-GRATIA PAYMENT TO ECUADORIAN RETIREES. 
 
REF: SECSTATE 168177 
 
1.(U) Throughout the consideration of agenda item 128: 
Questions related to the UN Joint Staff Pension Fund (UNJSPF) 
in the Fifth Committee, USUN objected to the G-77 proposal to 
approve a one time, ad hoc, ex-gratia payment to retirees and 
other beneficiaries of the UNJSPF who have been "adversely" 
affected by dollarization in Ecuador. USUN consistently noted 
the concerns expressed by the Committee of Actuaries and by 
the ACABQ (A/62/7/Add.3) that such a payment would deviate 
from the UNJSPF's income replacement principle and would also 
establish a dangerous precedent that would invite similar 
requests by other groups of UN pensioners. In addition, USUN 
argued that it was unconscionable for the UN to make payments 
totaling $500,000 to some 79 relatively well off Ecuadorian 
UN pensioners while the UN struggles to raise funds for 
millions of other truly needy individuals around the world. 
USUN noted that, putting aside other possible sources income, 
many of those 79 former professional UN staff members were 
receiving pensions that exceed $20,000 a year - going as high 
as over $50,000 per year - in a country where the average 
annual income is $2,840 and the poverty rate is 35 percent. 
 
2.(U) In an effort to reach a compromise, USUN proposed that 
these one time, ad hoc, ex-gratia payments be funded through 
voluntary contributions. The Russia Federation supported the 
compromise but the EU and the CANZ did not. The G-77 rejected 
the US proposal outright. USUN has been informed that the EU 
and CANZ had struck a deal to support these payments in 
return for G-77 support to reduce direct UN support to 
administrative costs of the Pension Fund. As previously 
discussed, USUN argued to its EU and CANZ colleagues, the 
issue of regular budget support to the administrative costs 
of the UNJSPF is a separate issue which justifies action by 
the Fifth Committee on its merits without reference to the 
issue of these payments. 
 
3.(U) Consistent with the instructions contained in reftel, 
USUN indicated that it could not join consensus and called 
for a vote in the Fifth Committee on paragraph 10 of draft 
resolution A/C.5/62/L.25, which approves the one time, ad 
hoc, ex-gratia payment and also on the resolution as a whole. 
Paragraph 10 was approved by a vote of 93 in favor to 1 
against (USG) with 47 abstentions. Virtually the entire EU 
abstained on this vote. The draft resolution as a whole was 
approved by a vote of 140 in favor to 1 against (USG) with 1 
abstention (Canada). Following adoption of the resolution, 
USUN/MR Counselor Bruce Rashkow delivered an explanation of 
vote (EOV) (see para 4). The vote on UNJSPF was repeated in 
the GA. In the GA, Paragraph 10 was approved by a vote of 95 
in favor to 1 against (USG) with 45 abstentions. Once again, 
virtually the entire EU abstained on this vote. The 
resolution as a whole was approved by a vote of 140 in favor 
to 1 against (USG) with 1 abstention (Canada). 
 
4.(U) On December 21, 2007, following the vote on UNJSPF in 
the Fifth Committee, USUN/MR Counselor Bruce Rashkow 
delivered the following EOV. Begin text: 
 
Thank you Mr. Chairman. 
 
On behalf of the United Sates delegation, I would like to 
express our deep disappointment concerning the decision in 
this resolution to approve ad hoc, one-time, ex gratia 
payments to retirees and other beneficiaries of the Pension 
Fund who have been "adversely" affected by dollarization in 
Ecuador. The United States remains strongly opposed to the 
blanket approach endorsed by this resolution. 
 
Mr. Chairman, 
 
Both the Committee of Actuaries and the ACABQ concluded that 
this course of action deviates from the income replacement 
principle in the UNJSPF regulations and the Funds' two-track 
adjustment system. 
 
As Member States, we bear an important fiduciary 
responsibility to ensure the financial health of the Pension 
Fund. Accordingly, the United States could not in good 
conscience endorse the proposal contained in this resolution. 
We are deeply concerned that this resolution could invite 
requests for future payments in other cases of national 
economic instability. 
 
As we expressed throughout the consideration of this agenda 
item, we believe that this is a matter of equity for all 
Joint Staff Pension Fund participants and beneficiaries and 
that it is therefore inappropriate for the General Assembly 
to authorize a special payment to these individuals. 
Moreover, my government is deeply concerned about a decision 
by the UN to provide a substantial sum to a small group of 
 
 
people who are generally economically well off while the 
organization struggles to help many millions of people in 
desperate need around the world. 
 
Thus, my government in good conscience cannot support a 
proposal to augment the benefits for a small group of already 
relatively well off individuals. In this respect we note that 
many of the pensions received by the members of this group of 
individuals exceed $20,000 a year - going as high as over 
$50,000 a year for some - a sum that far exceeds the mean 
income in a country where the annual average income is $2,840 
and the poverty rate is 35%. 
 
It is with these concerns in mind that my delegation must 
voice its strong opposition to the Board's proposal. 
 
For these reasons, the United States feels compelled as a 
matter of principal to vote against this resolution. End text. 
Wolcott