RESTRICTED
WORLD TRADE WT/GC/W/83
21April 1998
ORGANIZATION(98-1623)
General Council
CONDITIONS OFSERVICE APPLICABLE TOTHE
STAFF OFTHE WTO SECRETARIAT
Draft Decision
TheWTO General Council andICITO Executive Committee,
Recalling theirDecision adopted on1July1997 (WT/L/223), andinparticular,
Noting thataWTO Secretariat shallbeestablished pursuant toArticle VIoftheAgreement
Establishing theWTO,
Considering theMarrakesh Ministerial Decision onOrganizational andFinancial Consequences
Flowing from Implementation oftheAgreement Establishing theWTO,
Recalling thattheWTO isasuigeneris organization established outside theUnited Nations
system,
Recalling alsotheDecision oftheWTO General Council on7February 1997establishing the
Working Group onConditions ofService Applicable totheStaffoftheWTO Secretariat anddefining
itsterms ofreference (WT/GC/M/18),
Stressing thatallpotential costincreases intheWTO budget, including those relating tostaff,
mustbeoffset through efficiency gains, improved priority-setting andother savings measures toensure
costneutrality intheoverall leveloftheWTO budget,
Reaffirming thattheWTO shallcontinue thepractice ofmaking decisions byconsensus on
budgetary andadministrative matters,
Decide that:
1. itistheobjective oftheGeneral Council thattheWTO Secretariat should beestablished
by1January 1999 withitsownregulations andrules governing themanagement of
thestaffandtheircompensation arrangements, under thefollowing conditions;
2. theWorking Group onConditions ofService Applicable totheStaff oftheWTO
Secretariat shall submit totheGeneral Council adetailed proposal foraWTO
compensation andpersonnel planthatisindependent from theUNCommon System
ofsalaries, allowances andbenefits. Theproposal shall include acompensation
philosophy, present therationale andjustification foreachnewelement oftheplan,
andmaintain, atthemaximum, costneutrality incomparison withcurrent personnel
costs.TheproposalshallsetoutfulldetailsofproceduresforcontrolbyWTOMembers
ofanindependent compensation andpersonnel planandmeet other requirements
specified intheannex;WT/GC/W/83
Page2
3. before considering theWorking Group 'srevised proposal, apanel ofindependent
actuariesappointedwiththeapprovaloftheGeneralCouncilmustprovidetotheGeneral
Council certification thattheWorking Group 'sproposed compensation (salaries and
allbenefits) andpersonnel scheme willbepersonnel-cost neutral according totheterms
ofreference specified intheannex andthattheWorking Group 'sproposed independent
WTO pension fundwould beviable; and
4. once theGeneral Council determines thattheWorking Group 'sproposal foran
independent WTO compensation andpersonnel planisacceptable, itshallauthorize
theDirector-General toinform theUnited Nations JointStaffPension Fund thatthe
ICITO wishes toapply fortermination ofitsmembership intheFund andsetadate
fortheestablishment oftheWTO Secretariat onthisbasis.WT/GC/W/83
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ANNEX
1. Theproposal developed intheWorking Group, including administrative andotherrelated costs,
mustnotprovide salary andbenefit levels thatintheaggregate exceed salary andbenefit levels
intheUNCommon System andanyproposed redistribution ofbenefits must betargeted at
specifically defined problems.
2. Other terms ofreference must encompass:
- astudy thatshows thepersonnel costneutrality ofsalary andbenefit levels ofthe
proposed plan, including administrative andother related costs, overthenextfiveto
seven years;
- astudy ofthefinancial impact ofthenewpension planoverseveral decades (40years).
3. Details oftheproposed planmust, inparticular, takefullaccount of:
- theimpact onactive andretired WTO employees;
- theforeseen evolution inthenumber ofactive andretired WTO employees;
- thefinancial impact oftheproposed plan, withparticular attention totheevolution
ofemployee pension contributions, theeffect onMember government contributions,
adjustment mechanisms orfinancial control mechanisms, alloveraperiod ofatleast
40years;
- theadministrativeandothercoststobeincurredbytheWTOinmonitoringtheproposed
plan; and,
- theamount expected toberecovered fromtheUnited Nations JointStaffPension Fund.
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