Retirement and Savings Plans at the GS/OAS

– Regulations that direct the Retirement and Savings Plans at the OAS

– Current Situation

– New Hires and Separations

– Retirement and Saving Plans distribution at the GS/OAS

– Conclusions

AGENDA

-Article 50 of the General Standards makes reference to Social Security as follows:      

“The General Secretariat shall maintain a system of social security for the staff which shall include, to the extent determined by the competent organs of the Organization, provisions for health protection, sick leave and maternity leave, reasonable compensation in the event of illness, accident, or death resulting from the performance of official duties in the service of the General Secretariat, and retirement and pension or savings”

-Staff Rule 107.1 on Participation in the OAS Retirement and Pension Plan and Staff Rule 107.2 on Participation in Retirement Savings Plans provide definitions of each of the plans, rights and benefits of participants, and institute the staff members who are required and or eligible to participate.

- Staff Rule 107.2 (d) states that the GS may terminate any of the saving plans. In the event of termination, the GS/OAS shall pay or cause to be paid to the participants the full amount in their accounts, and the GS/OAS shall make arrangements for them to participate in an alternative retirement savings plan for the remaining duration of their contracts, with the same percentage GS/OAS contribution that they had previously enjoyed.

Regulations that direct the Retirement and Savings Plans at the OAS

CURRENT SITUATION

GS/OAS Current Staff Composition

Distribution of staff source of funding as of February 28, 2014

Source of Financing of staff from 2007 to 2014 as of February 28, 2014

GS/OAS Current Staff Composition

NEW HIRES

60% of staff hired since 2010 are financed by specific funds

66% of staff hired since 2010 are 20-39 years old

GS/OAS New Hires Composition

SEPARATIONS

Separation from Service

From 2007 to 2013

Average turnover in last 7 years: 12%

GS/OAS Separating Staff Composition

New Appointments from 2007 to 2013

Half of staff hired over the last 7 years separated from service

Years of service of staff members at moment of separation from 2007 to 2013

Half of staff members who separated in the last 7 years had 0-3 years of service

GS/OAS Separating Staff Composition

Source of financing of staff members at the moment of separation from 2007- 2013

Half of staff members who separated in the last 7 years were financed by the regular fund and half by other funds

GS/OAS Separating Staff Composition

Retirement and Saving Plans distribution at the GS/OAS

Retirement and Savings Plans distribution at the GS/OAS

Participation in Retirement and Savings Plans as of February 28, 2014

As of February 28, 2014, 69% of staff members participate in the OAS RPP, 19% in the 401(m), and 12% in other plans

Retirement and Savings Plans distribution at the GS/OAS

Participation in Retirement and Savings Plans by Years of Service (Excluding “Provident Plan (SOC)” and “n/a” category) as of February 28, 2014

After 7 years of service most staff members participate in the OAS RPP

 

Retirement and Savings Plans distribution at the GS/OAS

Participation in Retirement and Savings Plans by Category (Professional – General Services) as of February 28, 2014

General Services staff are more likely to participate in the OAS RPP over the 401(m) than Professional staff

Retirement and Savings Plans distribution at the GS/OAS

Participation in Retirement and Savings Plans by Type of Contract (Excluding SOCs, Continuing contract, career and associates) as of February 28, 2014

Staff with long-term contracts are more likely to participate in the OAS RPP than staff with short-term and trust contracts

Retirement and Savings Plans distribution at the GS/OAS

Participation in Retirement and Savings Plans by source of financing (Regular Fund, ICR, Specific Funds) as of February 28, 2014

Staff financed by the regular fund are more likely to participate in the OAS RPP than staff financed by ICR and specific funds.

RF ICR SF RF ICR SF RF ICR SF RF ICR SF RF ICR SF RF ICR SF RF ICR SF

Ret. and Pension Plan 467 20 63 457 36 53 433 39 52 414 37 52 360 59 54 368 28 53 345 25 57401M Plan 45 4 32 61 8 36 73 13 44 70 16 51 69 19 47 66 17 46 66 15 35Credit Union Plan 4 4 4 4 3 3 3Provident Plan 19 12 16 8 9 11 12 11 10 6 7 15 1 13 16 3 1 7 6 4Provident Plan (SOC) 30 31 25 34 26 24 20Direct Savings Plan 3 3 3 1 4 6 4 1 2 1 5 1 2 2 2 1 1n/a* 3 8 19 3 14 10 3 1 31 3 39 3 29 2 33 2 37TOTAL 541 47 163 534 71 147 529 65 164 497 61 196 436 92 174 444 46 165 423 40 154

2007 2008 2009 2010 2011 2012 2013

Retirement and Savings Plans distribution at the GS/OAS

Participation in Retirement and Savings Plans by Source of Financing - From 2007 to 2013

0

10

20

30

40

50

60

70

80

90

100

RF ICR SF RF ICR SF RF ICR SF RF ICR SF RF ICR SF RF ICR SF RF ICR SF

2007 2008 2009 2010 2011 2012 2013

%

Ret. a nd Pens ion Pla n 401M Pla n

Retirement and Savings Plans distribution at the GS/OASParticipation in Retirement and Savings Plans at the moment of separation by year

10745%

8938%

63%

146%

21%

167%

Ret. and Pension Plan

401M Plan

Provident Plan

Provident Plan (SOC)*

Direct Savings Plan

n/a*

Retirement and Savings Plans distribution at the GS/OAS

2007 2008 2009 2010 2011 2012 2013 TOTALRet. and Pension Plan 19 22 16 13 14 10 13 107401M Plan 9 12 15 7 21 16 9 89Provident Plan 6 6Provident Plan (SOC)* 2 1 4 2 5 14Direct Savings Plan 2 2n/a* 1 2 13 16TOTAL 28 36 32 25 37 33 43 234

Staff members hired since 2007 and currently working at the SG/OAS

Among current staff hired since 2007, 46% participate in the OAS RPP, 38% in the 401(m), and 16% in other plans

Conclusions

• 60% of staff hired since 2010 are financed by specific funds

• 36% of staff hired since 2010 are 20-29 years old and 30% are 30-39 years old

• Average turnover in last 7 years: 12%

• Half of staff members who separated in the last 7 years had 0-3 years of service

• Half of staff members who separated in the last 7 years were financed by the regular fund and half by ICR and specific funds.

• Half of staff hired over the last 7 years separated from service

Conclusions•As of February 28, 2014, 69% of staff members participate in the OAS RPP, 19% in the 401(m), and 12% in other plans

•Among current staff hired since 2007, 46% participate in the OAS RPP, 38% in the 401(m), and 16% in other plans

•After 7 years of service most staff members participate in the OAS RPP

•Staff financed by the regular fund are more likely to participate in the OAS RPP than staff financed by ICR and specific funds.

•Staff with long-term contracts are more likely to participate in the OAS RPP than staff with short-term and trust contracts