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Report from the BIPM P Pensio ion F Fund A Advis isory Board - - PowerPoint PPT Presentation
Report from the BIPM P Pensio ion F Fund A Advis isory Board - - PowerPoint PPT Presentation
Report from the BIPM P Pensio ion F Fund A Advis isory Board Luc ERARD Member of the CIPM, Chair of the PFAB. OUTLINE 25th CGPM -Nov 2014 and follow-up by the CIPM Proposals October 2016-2017 Implementation of measures to address the
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Outline proposals to address the long-term financial stability
- f the Pension Fund were presented to Member States.
In discussion, there was agreement: – to continue with the scheme on a « pay as you go basis »(also known as a « DB scheme ») – a target for financial stability was agreed (the assets to remain undiminished over 40 years). – that additional contributions of 150 k€ p.a would be made.
CGPM (2014 2014) and follow-up by the CIPM
Resolution 3
“ … invites the CIPM to
- implement its plans to provide sustainability for
the BIPM Pension and Provident Fund whilst continuing to examine the longer term liability issue,
- inform Member States about the outcome of
actuarial studies on the assets and liabilities of the BIPM Pension and Provident Fund in its regular financial publications and at the next meeting of the General Conference”.
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During 2015, the CIPM Sub-committee for the Pension Fund and Health Insurance (PF&HI) started to implement the decisions made by the CGPM:
- 7th Meeting – Jan 2015
- 8th Meeting – May 2015
with a new President.
- 9th Meeting – Sept 2015
with an elected staff representative invited in advance of the 1st PFAB meeting.
In October 2015, decision CIPM/104-33 established the Pension Fund Advisory Board (PFAB):
- 1st Meeting – Dec 2015
- 2nd Meeting - Feb 2016
- 3rd Meeting – Oct 2016
- 4th Meeting – Feb 2017
- 5th Meeting – Sep 2017
- 6th Meeting – May 2018
And, many meetings involving: staff, staff representatives (CCE), the bureau of the CIPM, the PFAB President and the expert member of the PFAB.
CGPM (2014 2014) and follow-up by the CIPM
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Proposals (October 2016)
Proposed timetable for implementation – 1 Jan 2017 (for active staff) – 1 Jan 2018 (for the freeze of pensions) – An actuarial review in 2019 to consider: introducing an option to change sections, whether the pension freeze is still required, and the final contribution rates. Proposed staff contribution rates Pre-2010 19.8% in steps of 1.5% or 2% Post-2010 18.8% in steps of 1.5% or 2% Post 2017 15.4% (from 1/1/2017) Calculations also carried out for the effect of a freeze on pensions in payment With pension freeze Without pension freeze
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Implementatio ion of the measures approved by the CIPM (January 2017)
End of 2016, the CIPM approved revised contribution rates (from 1/1/2017) of Pre-2010 10% to 11.5% then steps of 1% to 19.8% Post-2010 10% to 11.5% then steps of 1% to 18.8% Post-2017 15% (from 1/1/2017) In December 2016, the CIPM approved:
1.
BIPM to pay an additional 150 k€ p.a. into the PF
2.
BIPM to make an additional one-off payment of 400 k€ into the PF
3.
That the death in service capital will be applied to all staff members
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In October 2017, the CIPM approved (for implementation on 1/1/2018)
- Involvement of one representative of pensioners in the PFAB,
(Decisions CIPM 105-09, CIPM 106-07)
- Increase in involvement of staff in the PFAB to a total of three representatives
(Decision CIPM 106-07)
- A « freeze » of pensions in payment for 2018 and 2019.
(Decision CIPM 106-07) It should be noted that two pensioners have brought before the ILO Administrative Tribunal appeals related to the pension adjustment. The PFAB will follow up on the outcome of these appeals.
Implementatio ion of the measures approved by the CIPM (January 2018)
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Luc Erard (Chair)
Thomas Grenon (Expert)- formerly Christian Bock
Carine Michotte (Staff Representative)
Martin Milton (BIPM Director)
Gérard Petit (Staff Representative)
Martin Sené (CIPM)
Stephane Solve (Staff Representative)
Takashi Usuda (CIPM)
Thomas Witt (Pensioner’ Representative) Executive secretary
Felipe Rojas (BIPM Legal Advisor)-formerly Sigrid Arlen BIPM staff in support
Céline Fellag Ariouet
Members of t the P PFAB
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Independent study confirms choice of investment strategy. Next steps: an ad hoc Investment Committee composed of the Chair of the PFAB and the Director
- f the BIPM, will meet
with the Investment Managers to review fees and strategy.
Review of investments
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Next steps
– A policy of preferring recruitment into 5-year fixed-term posts is now being implemented, which will also address the long-term liability issue. – An actuarial review is required in 2019. It will be the basis for considering: the effectiveness of options for addressing the long-term stability of thr Pension Fund; whether the « pension freeze » is still required and confirming the contribution rates. – Continuous review of financial performance will continue.
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