WORLD TRADE  
ORGANIZATION  WT/BFA/W/186 
29 June 2009 
 (09-3170) 
Committee on Budget, Finance and Administration  
  
 
ACTUARIAL POSITION OF THE WTO PENSION PLAN 
 
Note by the Chairman of the WTOPP Management Board
 
  
1. Document WT/BFA/W/179 set out the current actuarial position of the WTO Pension Plan as 
it emerged from the actuarial valuation at 31 December 2007 and the action recommended by the 
Management Board pursuant to Article 9 of the Plan Regulations to maintain the actuarial balance of 
the Plan. 
2. In light of the difficulties experienced by Memb ers of the CBFA in reaching a consensus with 
respect to the action recommended in document WT /BFA/W/179, the Management Board has agreed 
upon the following revised set of recommendations with a view to resolving those difficulties. 
 Normal retirement age
 
3. It is recommended that the normal retirement age be  increased to 65 for new entrants and that 
existing staff be entitled to exercise the option to  remain in service beyond the current age of 62. 
4. The corresponding amendment to Article 2(l) of the Plan Regulations is reproduced in 
Annex 1. 
Contribution rate  
5. It is recommended that the overall rate of c ontribution to the Plan be increased from 
22.5 per cent to 23.7 per cent, the contributions of th e participant and of the WTO thus being raised to 
7.9 per cent and 15.8 per cent, respectively.  The ove rall contribution rate would thus be brought back 
within the tolerance margin set by the consulting actuary for differences between the cash 
contribution rate and actuarially  required contribution rate. 
6. The corresponding amendment to Article 20(a) of the Plan Regulations is reproduced in 
Annex 1. 
Effective date  
7. The Management Board further recommends th at each of the above recommendations enter 
into force on 1 January 2010. 
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 8. The Management Board further recognizes that  should future actuarial assessments, as 
advised by the Consulting Actuary to the Plan, indicat e that the revised contribution rate is in excess 
of what is needed to meet the long-term oblig ations of the Pension Plan, there should be a 
corresponding reduction in the cash contribution rate. WT/BFA/W/186 
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  9. In making the above recommendations, the Board is of the firm view that any future 
adjustment made necessary by the actuarial position of the Pension Plan should be governed by the 
long-term cost-sharing principle upon which the Plan was established of one-third/two-thirds between 
participants and the Organization, respectively.  In taking this view, the Board wishes to point out that 
regular measures are taken to monitor the perform ance of the Plan, both long-term and short-term, 
including the triennial actuarial valuations and th e asset liability management study (ALM), and that 
efforts will continue to be made to reduce Plan costs.  WT/BFA/W/186 
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  ANNEX 1 
 
Regulations of the WTO Pension Plan  
  Article 2 Definitions  
 
(l) "Normal retirement age" shall mean age 65, except that it shall mean age 62 for a participant 
whose participation commenced before 1 Janua ry 2010 and age 60 for a participant whose 
participation commenced before 1 January 1990. 
 
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Article 20 
Contributions  
 
(a) Each participant shall pay a contribution deducted from the monthly salary and transferred 
directly to the Plan. For periods of contributory service prior to 1 January 2010, the contribution of the participant and of the WTO shall correspond to 7.5 per cent and 15 per 
cent of pensionable remuneration, respectively.  For periods of contributory service as from 
1 January 2010, the contribution of the par ticipant and of the WTO shall correspond to 
7.9 per cent and 15.8 per cent of pensionable remuneration, respectively. 
 
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