RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/BFA/W/179 
24 November 2008 
 (08-5719) 
Committee on Budget, Finance and Administration  
  
 
ACTUARIAL POSITION OF THE WTO PENSION PLAN 
 
Note by the Chairman of the WTOPP Management Board
 
 
 
1. The present document sets out the current actua rial position of the WTO Pension Plan as it 
has emerged from the most recent regular actuarial  valuation and the action recommended by the 
Management Board pursuant to Article 9 of the Plan Regulations to maintain the actuarial balance of 
the Plan.  
I. ACTUARIAL VALUATION AT 31 DECEMBER 2007 
2. In accordance with Article 9(a) of the Plan Regulations, regular actuarial valuations are 
carried out by the consulting actuary of the Plan at three-yearly intervals. Th e latest such valuation 
was carried out at 31 December 2007. In carrying out this valuation, the consulting actuary was 
instructed by the Management Board to ame nd two key assumptions underpinning the exercise.  
3. The first amendment concerned the assumption with respect to expected future improvements 
in mortality, where the Management Board, having sought the advice of a working group specially set 
up for the purpose, directed the consulting actuary to apply an improvement of 2 per cent per year 
over the next twenty years in the current mo rtality tables used for valuation purposes.  
4. The second amendment concerned the assumed rate of general salary inflation, i.e. the rate at 
which WTO staff salaries increase as a result of seniority progression and promotions, as distinct from  adjustments resulting from the app lication of the salary adjustment methodology. Hitherto, it was 
assumed that salaries would thus increase at a rate of 3.5 per cent per year. Again on the advice of its 
working group, which had also sought expert advice from within the WTO Secretariat, the 
Management Board directed the consulting actuary to  adjust the assumed rate of increase from 3.5 per 
cent to 4.0 per cent for the purposes of the 2007 valuation. 
5. In carrying out the valuation, the consulti ng actuary recommended, and the Management 
Board agreed, that a smoothing approach to the valu ation of Plan assets should be used in order to 
allow investment gains and losses to be recognized over a period of time and to smooth out the 
volatility in the asset value used to calculate the required Plan contribution rate. The method recommended by the consulting actuary corresponds to  that used by the United Nations Joint Staff 
Pension Fund. Hitherto, the asset value at the date  of the valuation had been used for actuarial 
valuation purposes. 
6. As a direct consequence of the above amendmen ts to the regular valuation methodology, the 
regular valuation at 31 December 2007 revealed that  the contribution rate required to maintain the 
actuarial balance of the Plan in the long term  had increased from 23.1 per cent as of 31 December 
2004 to 27 per cent. The actual contribution rate has remained at 22.5 per cent of pensionable remuneration since the inception of the Plan in 1999. 
7. As required under Article 9(c) of the Plan Regula tions, a copy of the actuarial valuation report 
as at 31 December 2007 is attached, Attachement 1. WT/BFA/W/179 
Page 2  
 
  II. CORRECTIVE ACTION RECOMMENDED BY THE MANAGEMENT BOARD 
PURSUANT TO ARTICLE 9(D) OF THE PLAN REGULATIONS  
A. N
ORMAL RETIREMENT AGE 
8. In considering the corrective action required to  redress the actuarial deficit emerging from the 
actuarial valuation at 31 December 2007, the Management Board noted that a significant part of that 
deficit was attributable to the change in morta lity assumption. The Management Board considered, 
therefore, that it would be appropriate to review the definition of "normal retirement age" in Article 
2(l) of the Plan Regulations with a view to refl ecting the fact that Plan beneficiaries would be 
expected to draw their benefit for a longer period in retirement.  
9. It was concluded that it would be appropriate to increase the normal retirement age to 65 for 
new entrants and, at the same time, allow existing staff  to remain in service beyond the current age of 
62 in order to maximize the beneficial impact on the Plan of the increase in normal retirement age. 
The consulting actuary has determined that that am endment to the Plan Regulations would reduce the 
required contribution rate by 2.8 percentage points.    
10. The Management Board further recommends that the effective date of the above amendment 
to Article 2(l) of the Plan Regulations be 1 Janua ry 2010 in order to take into account specific human 
resource policy considerations brought to the atte ntion of the Management Board by the Director-
General. The consulting actuary has indicated th at the current actuarial position would not be 
significantly affected by delaying the implementa tion of a higher normal retirement age by one year. 
11. The Management Board recommends, therefore, that  Article 2(l) of the Plan Regulations be 
amended as shown in Attachement 2 
B. CONTRIBUTION RATE 
12. In order to make good the remaining difference of 1.7 percentage points between the current 
overall rate of contribution of 22.5 per cent and the actuarially required rate of 27 per cent - 2.8 per 
cent = 24.2 per cent, and taking into account the curr ent 2:1 sharing ratio applied to contributions by 
the WTO and Plan participants, respectively, th e Management Board reco mmends that the overall 
Plan contribution rate be increased to 24.3 per cent,  the participant contribu tion rate being set at 
8.1 per cent and the WTO contribution rate being set at 16.2 per cent.    
13. The Management Board further recommends that the above, higher rates of contribution enter 
into force on 1 January 2009.  
14. The Management Board recommends, therefore, that  Article 20(a) of the Plan Regulations be 
amended as also shown in Attachement 2. 
_______________ 
 
15. 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 notes that regular 
measures are taken to monitor the performance of the Plan, both long-term and short-term, including 
the  triennial actuarial valuations and th e asset liability management study (ALM).  
 
_______________   WT/BFA/W/179 
 Page 3 
 
 
  ATTACHEMENT 1 
 
 
WORLD TRADE ORGANISATION 
PENSION PLAN 
ACTUARIAL V ALUATION REPORT AS  
AT 31 DECEMBER 2007 
 
 
22, Rue François-Perreard 
CH-1225 Geneva +41 22 918 1003 
 
Prepared by : Cameron Hannah Reviewed by : Gilles Demottaz      Version: 14 July 2008 
 
 
Consulting. Outsourcing. Investments WT/BFA/W/179 
Page 4  
 
  Contents 
 
 
1. Executive Summary 
5 
2. Data  6 
3. Assumptions 7 
4. Methodology 10 
5. Results 11 
Appendix A :  Analysis of Member Information 13 
Appendix B:  Asset Data 14 
Appendix C:  Mortality rates 15  WT/BFA/W/179 
 Page 5 
 
 
  1. Executive Summary 
 
 This report sets out the results of the Actuar ial Valuation completed as at 31 December 2007 
for the World Trade Organisation Pension Plan (WTOPP). This is the fourth formal actuarial valuation of the WTOPP, the previous valuati ons having been completed effective 31 December 
2004, 31 December 2001 and 1 January 1999. 
  Currently, the long term funding principle is to  establish a stable long term contribution rate 
that is sufficient to finance the benefits promised. It is noted that from one valuation to the next, the 
normal contribution rate may vary due to changes in asset values. 
 
 The security of benefits in the event of disso lution of the WTO is governed by Article 21 of 
WTOPP Regulations which states that:  “In the event of dissolution of the WTO, the Ge neral Council shall take the necessary steps to 
guarantee the benefits acquired under these Regulations  by participants and beneficiaries at the date 
of dissolution”  
 
 During the inter-valuation period since the previous formal actuarial valuation, a working group was established to review actuarial assu mptions and funding objectives. The working group 
presented its report to the Management Board of th e plan in 2007. As Consulting Actuary to the WTO 
Pension Plan, we were included in this working group as an adviser and concur with the two key 
recommendations on actuarial assumptions. The Bo ard has thus instructed us to adopt two 
amendments to the actuarial assumptions, specifically to:  
• Increase the general salary inflation assumption from 3.5 per cent to 4.0 per cent  
 
• Apply a mortality improvement to the EVK 2000 tables. We have applied an 
improvement of 2 per cent per year applied geometrically for 20 years 
 
 A summary of the results of the valuation are set out below:  
• The long term normal contribution rate using the same assumptions as at 
31 December 2007 is 23.1 per cent of pens ionable salaries, excluding the expense 
loading. 
 
• After adopting the two amended assumptions (general salary inflation & mortality 
improvement), the long term cost increases to 26.5 per cent of pensionable salaries. 
 
• We further recommend adopting a smoothing approach for valuing the assets of the 
plan which is the same as the method u sed by the UNJSPF. This would increase the 
long term cost by 0.3 per cent from 26.5 per cent to 26.8 per cent of pensionable 
salaries. 
 
• The rate of contribution required to meet the cost of expenses should be increased 
from 0.2 per cent to 0.8 per cent of pensionable salaries. As the costs are all met by the Organisation at the moment, we recomme nd that the additional 0.6 per cent of 
pensionable salaries cost is met by the Organisation. 
 
• We recommend that the Board formulates its position on how to bring the long term 
cost of the plan (27.6 per cent of pensiona ble salaries) into balance with the cash 
contributions received by the plan (curren tly 22.5 per cent of pensionable salaries). 
This may be achieved by either making amen dments to the benefit structure and / or WT/BFA/W/179 
Page 6  
 
  amendments to the cash contributions paya ble to the plan by the members and the 
Organisation. 
 
2. Data  
 A summary of data used for this valuati on is set out below. The data was provided by 
Trianon, the WTOPP administrator. All figures are in CHF.  
Active members 
All figures in CHF  Male  Female  Total  
Number 325 385 710 
Total Final Average Remuneration 57’273’049 55’880’468 113’153’517 
Average Final Average Remuneration 176’225 145’144 159’371 
Average age 45.00 43.26 44.06 
Average adjusted credited service 10.11 9.3 9.67 
 
Beneficiaries  Male  Female  Total  
Number 
Retirement Disability 
Spouse 
Children Total  
54 
4 
- 
10 68  
43 
3 
4 
5 
55  
97 
7 
4 
15 
123 
Average age 
Retirement 
Disability 
Spouse  
63.8 
53.1 
-  
62.8 
49.1 
58.0  
63.3 
51.4 
58.0 
 
Beneficiaries (annualised pension in payment  
(in CHF) Male  Female  Total  
Retirement 
Disability 
Spouse 
Children Total 3'131’098 
211’800 
- 
47’994 
3'390’892 2'580’556 
130’691 
218’584 
22’734 
2'952’565 5’711’654 
342’491 
218’584 
70’728 
6’343’457 
 
Deferred Retirees 
All figures in CHF  Male  Female  Total  
Number 
Deferred retirement pension at separation 3 
54’012 3 
51’012 6 
105’024 
 
 Pensions are the annualised rate of pensi on payment as at 31 December 2007. Although there 
has been a significant increase in the number of pensioners (from 55 as at 31 December 2004 to 123 
as at 31 December 2007), the WTOPP is still immature  with the bulk of members being active and 
contributing to the plan.   Tables providing further analysis of member information are included in appendix A.  WT/BFA/W/179 
 Page 7 
 
 
  3. Assumptions 
 
 Current assumptions  
 
 The table below provides a summary of the base line actuarial assumptions used at this 
valuation and the three previous valuations.  
 
Date  31 Dec 2007  31 Dec 2004  31 Dec 2001  1 Jan 1999  
Financial 
Discount 
(interest) rate 
General salary inflation 
Pension increase 
rate Consumer price 
inflation  
6.5% 
3.5% 
3.0% 3.0%  
6.5% 
3.5% 
3.0% 3.0%  
6.5% 
3.5% 
3.0% 3.0%  
6.5% 
3.5% 
3.0% 3.0% 
Demographic 
Mortality 
Disability 
Withdrawal Early retirement  
EVK 2000 
EVK 1990 
WTO Specific WTO Specific  
EVK 2000 
EVK 1990 
WTO Specific WTO Specific  
EVK 2000 
EVK 1990 
WTO Specific WTO Specific  
EVK 1990 
EVK 1990 
WTO Specific WTO Specific 
New entrants 
Proportion Male / 
Female (Professional / 
General), age, 
pensionable remuneration  
M50%, 35, 120’000 
F50%, 34, 90’000  
M50%, 35, 120’000 
F50%, 34, 90’000  
M50%, 35, 120’000 
F50%, 34, 90’000  
MP64%, 35, 117’000 
FP36%, 35, 117’000 MG32%, 30, 62’000 
FG68%, 30, 62’000 
 
 Investments & asset value calculation  
 
 The table below provides a summary of the i nvestment returns during the nine year period 
since the WTOPP was established. The average real re turn (investment return – price inflation) over 
this period is approximately 2.5 per cent compared w ith an expected long term real return of 3.5 per 
cent used in the valuation assumptions. In appendix B,  we provide more detail on the market value, 
income and outgo of the plan. 
 
Year  Investment return  Price inflation  Real return  
 A B C = A - B  
1999    3.62% 
2000  4.73% 1.5% 3.23% 
2001  -10.13% 0.30% -10.43% 
2002  -18.31% 0.90% -19.21 
2003  10.01% 0.60% 9.41% 
2004  4.5% 1.4% 3.1% 
2005  23.7% 1.0% 22.7% 
2006  9.0% 0.6% 8.4% 
2007  3.5% 2.0% 1.5% 
 
 Based upon prior asset studies, the investment st rategy selected is expected to yield a long 
term real return in excess of 3.5 per cent.    In a number of countries and moreover for the UNJSPF, an asset smoothing method is used for the long term funding valuation.  The obj ective of using a smoothing method is to allow WT/BFA/W/179 
Page 8  
 
  investment gain and losses to be recognized over a duration of time and sm ooth out the volatility in 
the asset value used in calculating the normal contribution rate.    There are a number of different asset smoothing approaches including:   
• discounted cash flow; 
• average of cost and market value; 
• predictor – corrector; 
• moving market average. 
 The most commonly adopted approach is the moving market average. This is the method that 
is used by the UNJSPF. The smoothing period is ty pically three to five year. The UNJSPF smoothes 
returns over the previous four calendar years.    It is common practice to include a cap (maximum) and collar (minimum) extent to which the 
smoothed value deviates from the market value, for example a maximum of 115 per cent of market 
value and a minimum of 85 per cent of market value.    The impact of using a smoothing method is given below.  
 Smoothed asset value = MV – 80%xE 1 – 60%xE2 – 40%xE3 – 20%xE4  
  Where: 
• MV = Market value at the valuation date. 
• E1 to E4 are the excess / deficiency in the amount of the investment earnings over 
that expected according to the nominal long term return on assets assumption. 
• Detail of the excess / deficiency since plan  inception is given in the Appendix B. 
• Apply a cap of 115% and collar of 85% (i.e . 15% either side of market value). 
 
 The table below provides information on how this  would affect the asset value used for the 
WTO valuation.  
Results 
(CHF million) Market Value Smoothed value Difference 
31 December 2007 366 354 97% 
31 December 2006 339 309 91% 
31 December 2005 297 274 92% 
31 December 2004 223 250 112% 
31 December 2003 196 225 115% 
31 December 2002 163 187 115% 
  The smoothing method would increase the contri bution rate by 0.3 per cent of pensionable 
salaries as at 31 December 2007. 
  WT/BFA/W/179 
 Page 9 
 
 
  Recommendation 
 
Adopt the UNJSPF approach to asset smoothing. 
 
 New Entrants  
 
 During the calendar years 2005 to 2007, the average new entrant details are set out in the 
table below. Although the ratio between male and fe male new entrants and moreover their respective 
average ages at entry does not diffe r significantly from the current assumption, the average salary at 
entry has increased. 
 
Sex Age Pensionable 
Salary Distribution 
M 35 CHF 135’000 45% 
F 34 CHF 120’000 55% 
 
Recommendation 
 
 We recommend adopting the following assumptions for the current valuation: 
 
Sex Age Pensionable 
Salary Distribution 
M 35 CHF 135’000 50% 
F 34 CHF 120’000 50% 
 
 This change will have no impact on the long term contribution rate of the plan. 
 
 Financial & Demographic Assumptions  
 
 During the intervaluation period since 31 De cember 2004, a working group was established to 
review all of the financial and demographic assump tions of the plan. The working group presented its 
findings to the Board who adopted the following recommendations:  
• To increase the general salary inflation assumption from 3.5 per cent p.a. to 4.0 per 
cent p.a.. 
• To allow for future mortality improvement. 
  We recommend that allowance is made for improvement for a 20 year period to the EVK 2000 table using an improvement rate of 2 per cent per year, applied geometrically. This is the same 
assumption that the UNJSPF currently applies. More information on life expectancies is provided in 
Appendix C and as will be seen, a 2 per cent improvement to the EVK 2000 table for a 20 year period 
provides a relatively conservative outcome compared  with the tables applied in most countries. WT/BFA/W/179 
Page 10  
 
  4. Methodology 
 
 Summary
 
  The approach used to complete this actuarial valuation is summarised below: 
 
Phase 1 Phase 2 Phase 3 Phase 4 
Collection of data Decision on assumptions, 
methodology  Producing draft results on 
closed group 
(discontinuance) and 
open group basis (ongoing). Presentation and 
discussion of results 
A. Outputs 
Reconciliation of data Setting up valuation 
model Valuation runs on 
different bases Final report 
 
 Methodology  
  The valuation process is based on standard act uarial processes and the assumptions set out in 
Section 3. The valuation is performed on two scenario s: firstly, on an ongoing basis (that is where the 
pension plan is assumed to continue) and on a ‘dis continuance basis’ which tests whether there are 
sufficient funds to meet the liabilities of th e plan if it were to close immediately. 
 
Ongoing Method (Open Group Valuation ) 
 
 We have performed the actuarial valuati on for the ongoing method on a so-called Open 
Group valuation. This approach assumes that there is a steady flow of new entrants into the plan, 
which replace those leaving the plan through retirem ent or withdrawal. The assumption on the profile 
of these new entrants is set out in Section 3.   This approach determines whether the contribut ion rate set out in the WTOPP regulations is 
sufficient to meet future liabilities of the plan. The approach is summarised below: 
 
• Determining the total projected benefits of all current employees based on past 
service and projected future service. 
• Determining the value of obliga tions to current pensioners. 
• Determining the value of future project ed benefits for future new entrants. 
• The present value of these obligations is then determined. 
• The present value of future remuneration is then determined and a contribution rate 
for the employer is derived as follows. 
• Required Contribution Rate =  
 
Total value of benefit obligations fo r existing and future members – Assets
 
Value of future Remuneration 
 
Discontinuance Method (Closed Group Valuation)  
 
 In order to determine the position on a ‘disc ontinuance basis’, a closed group valuation is 
performed.  This looks at the position of the fu nd based only on service accrued to date by current 
members (and beneficiaries liabilities). The activ e member liabilities are calculated as follows: 
 
• For members eligible to early retirement, it is assumed that the early retirement 
pension would commence immediately.  WT/BFA/W/179 
 Page 11 
 
 
  • For all other members, the maximum of the withdrawal settlement and value of 
deferred pension (where applicable) is valued. 
 
 The current beneficiary liabilities are calculat ed using the same approach as for the ongoing 
method. 
 
 The financial assumptions used are consistent  with the assumptions used for closed group 
actuarial valuations for private sector companies (i.e. liabilities are calculated using market long term 
interest rate and inflation expectations). Th e assumptions are set out in the table below: 
  
 Swiss European Union 
Date Interest rate Price inflation 
assumption Interest rate Price inflation 
assumption 
1 January 1999 4.50% 1.00% 5.00% 1.00% 
31 December 2001 4.10 % 1.00% 5.30% 1.00% 
31 December 2004 2.80 % 1.00% 3.80% 1.00% 
31 December 2007 3.50 % 1.00% 5.50% 2.00% 
 
 We have not take into consideration:  
• The cost of “buying out” beneficiaries lia bilities with an insurance company which 
may significantly exceed the calculated value. 
• The capitalisation of the costs of future expenses of operating a discontinued plan. 
 
5. Results 
 
 Ongoing or Open Group Valuation 
 
 
CHF Millions 31 Dec 07 31 Dec 04 31 Dec 01 31 Dec 98 
  New Base    
A Assets at market value 366 366 223 183 146 
B Present value of total projected 
benefits      
 a) Beneficiaries 107 99 47 11 0 
 b) Current active members 663 592 430 374 310 
 c) Future new entrants 638 511 483 438 291 
 d) Total [a + b + c] 1’408 1’202 960 823 601 
C Present value of future remuneration      
 a) Current active members 1’283 1’233 975 878 726 
 b) Future new entrants 2’653 2’387 2’240 2'013 1'373 
 c) Total [a + b] 3’936 3’620 3’215 2'891 2'099 
D Contribution requirement [(B - A)/C] 26.5% 23.1% 22.9% 22.2% 21.3% 
E Expenses 0.2% 0.2% 0.2% 0.2% 0.2% 
F Total normal contribution rate [D + E] 26.7% 23.3% 23.1% 22.4% 21.5% 
 
 The amendment to the general salary infla tion assumption and the allowance for future 
mortality improvement increase the long term cost of the plan (excluding expenses) from 23.1 per cent to 26.5 per cent of salaries.  Using the asset smoothing method would increase this by a further 
0.3 per cent to 26.8 per cent. Action is therefore requi red to either reduce the long term cost and / or 
by requiring a higher long term cash contribution ra te than 22.5 per cent, inclusive of 0.2 per cent 
expense loading. WT/BFA/W/179 
Page 12  
 
  Recommendation 
 
 The Board must formulate the action that it intend s to take to bring the long term cost into 
balance with the cash contributions of 22.5 per cent of pensionable salaries. Discontinuance Basis. 
 
Figures below are in CHF millions:  
CHF Millions
Valuation dateSwiss 
discount 
rateEU 
discount 
rateSwiss 
discount 
rateEU 
discount 
rateSwiss 
discount 
rateEU 
discount 
rate
A BC D E F G
A - B A - C A / B A / C
1 Jan 1999 146 151 137 -5 9 97% 107%
31 Dec 2001 183 267 218 -84 -35 69% 84%
31 Dec 2004 223 433 359 -210 -136 52% 62%31 Dec 2007 366 447 381 -81 -15 82% 96%
31 Dec 2007* 366 485 409 -119 -43 75% 89%LiabilitiesDiscontinuance 
funding levelDiscontinuance 
funding levelMarket 
Value of 
Assets
 
 
 The discontinuance basis is not used to dete rmine the long term contribution rate. It is 
recognised that this ratio may fluctuate over the short term. The working group has not reported on the acceptable margins wi thin which the discontinuance funding level can vary without action being 
taken. 
 
 There are two sets of results shown as at  31 December 2007. The second set, with lower 
funding level, allow for future mortality improveme nt at 2 per cent per year for a 20 year period. 
 
 Recommendation 
 No action is required. However, the Board need s to formulate its philosophy on discontinuance 
funding position and the trigger poi nt at which action is required. 
  WT/BFA/W/179 
 Page 13 
 
 
  APPENDIX A 
 
Analysis of Member Information  
  The tables below provide a detailed analysis of member information at both the current 
actuarial valuation and during the peri od since establishment of the plan. 
 
 
Date 31 Dec 2007 31 Dec 2004 31 Dec 2001 1 Jan 1999 
Actives 
Number 
Av. age Av. adj. cred. ser. 
Av. pen. rem. 
Total pen. rem.  
710 
44.06 
9.67 
159’371 
113’153’517  
710 
43.5 8.65 
140’500 
99’754’980  
618 
43.0 8.30 
136’482 
84’345’884  
512 
43.4 9.03 
133’104 
68’149’179 
Beneficiaries 
Number 
Average age 
Average pension Total pension  
123 
62.3 
51’573 
6’343’457  
55 
60.5 
49,847 
2,741,596  
14 
60.0 
48’219 
675’060  
- 
- 
- - 
 
 
 
Year  1999  2000  2001  2002  2003  2004  2005  2006  2007  
Active members 
# at 1 Jan 
New entrants 
Departures 
Early retired Normal retired 
Disabled* 
Died Deferred retirement 
Decision deferred 
Transferred to UNJSPF # at 31 Dec  
509 
63 
13 
3 1 
0 
0 0 
3 
0 
552  
552 
57 
23 
2 0 
0 
0 0 
3 
0 
581  
581 
84 
30 
4 4 
0 
0 3 
6 
0 
618  
618 105 
29 
6 4 
2 
0 1 
14 
1 
666  
666 
62 
18 
4 4 
1 
0 0 
8 
0 
694  
694 
66 
19 
2 
14 
1 
1 0 
13 
1 
710  
710 
51 
33 
7 9 
2 
1 
- 
12 
2 
695  
695 
50 
30 
4 9 
- 
1 
- 
17 
- 
684  
684 
67 
11 
7 
14 
1 
- - 
8 
- 
710 
Beneficiaries 
# at 1 Jan 
New retirees 
Spouse & children 
Deferred retirement Died 
End of child benefit 
# at 31 Dec  
0 4 
0 
0 
- 
- 
4  
4 2 
0 
0 
- 
- 
6  
6 8 
0 
3 
- 
- 
17  
17 12 
0 
1 
- 
- 
30  
30 
9 
0 
0 
- 
- 
39  
39 17 
4 
0 1 
- 
59  
59 19 
7 
- - 
- 
85  
85 13 
5 
1 
- 
3 
101  
101 
22 
6 
1 1 
- 
129 
 
 *Partial disability cases are not deducted from the total of active participants. 
 WT/BFA/W/179 
Page 14  
 
  APPENDIX B 
 
Asset Data
 
  
 The tables below provide a summary of the de velopment of the assets of the plan and the 
expected against actual investment income over th e six years since establishment. All figures in CHF 
millions. 
 
Year  Market value 
at start of year Contributions  Benefit 
payments & 
expenses  Net Investment 
income & 
unrealised 
gains  Market value 
at end of year  
  A B C D A+B-C+D  
1999  145.6 15.6 1.3 10.7 170.6 
2000  170.6 16.8 0.6 7.3 194.1 
2001  194.1 17.7 2.9 -26.4 182.5 
2002  182.5 19.2 3.9 -34.9 162.9 
2003  162.9 21.0 5.2 17.0 195.7 
2004  195.7 22.8 4.7 9.2 223.0 
2005  223.0 24.8 7.2 55.9 296.5 
2006  296.5 24.9 9.9 27.5 339.0 
2007  339.0 25.6 11.0 12.3 365.9 
 
 
 
 
Year  Expected rate of 
return (ER) Expected Investment 
Income 
[A + 0.5 x (B-C)] x 1  Net Investment 
income & unrealised 
gains  Actual less expected 
income  
 1 2 3 3 - 2 
1999  6.5% 9.9 10.7 0.8 
2000  6.5% 11.6 7.3 (4.3) 
2001  6.5% 13.1 -26.4 (39.5) 
2002  6.5% 12.4 -34.9 (47.3) 
2003  6.5% 11.1 17.0 5.9 
2004  6.5% 13.3 9.2 (4.1) 
2005  6.5% 15.1 55.9 40.8 
2006  6.5% 19.8 27.5 7.7 
2007  6.5% 22.5 12.3 (10.2) 
  WT/BFA/W/179 
 Page 15 
 
 
  APPENDIX C 
 
Mortality Rates  
  The two graphs below provide a comparative est imate of the life expectancy for a male aged 
65. The first graph shows the life expectancy for two old Swiss population tables, the EVK 2000 tale 
and the EVK 2000 table after 10, 20, 30, 40 and 50 years of improvement of 2 per cent per annum 
(applied geometrically).   
  Swiss tables (with 2%  improvement)
0.005.0010.0015.0020.0025.0030.00
2050 projection
2040 projection
2030 projection
2020 projection
2010 projection
EVK 2000 
1991 Swiss population
1981 Swiss tables
 
 WT/BFA/W/179 
Page 16  
 
   The second graph below shows ge neral population life expectancy  for a male aged 65 and the 
life expectancy from the mortality tables typically used for actuarial valuations of supplementary 
pension funds in the respective countries. Some  of these countries (for example France & Ireland) 
have an explicit allowance for future mortality improvement.  
 
 Pension fund & general tables for selected countries
051015202530
Switzerland
France
SwedenSpainUSA
Italy UK
Germany
Canada
Netherlands
Ireland
Company pension plans General population
 
 
   
  WT/BFA/W/179 
 Page 17 
 
 
  ATTACHEMENT 2 
 
REGULATIONS OF THE WTO PENSION PLAN1 
 
 
SECTION I 
GENERAL PROVISIONS  
 
 
Article 1 
Scope and purpose of the Plan  
 
 The Pension Plan of the World Trade Organi zation (hereinafter called the "Plan") shall 
provide retirement, death, disability and related bene fits for the staff of the World Trade Organization 
(hereinafter called the "WTO").  
 
Article 2 
Definitions  
 
 In these Regulations : 
 
(a) "Actuarial equivalent"  and "equivalent actuarial value"  shall mean the equivalent determined 
according to the actuarial tables adopted by the Management Board under Article 8. 
 (b) "Administrative Rules"  shall mean the rules adopted by the Management Board under 
Article 5. 
 
(c) " Beneficiary " shall mean a person entitled to receive, or in receipt of, a benefit under these 
Regulations . 
 (d) "Benefit"  shall include a withdrawal settlement under Article 26, and a residual settlement 
under Article 33.  
 
(e) "Child"  shall mean a child existing on the date  of separation or death in service of a 
participant and shall include the step-child or  adopted child of a participant, and a child in 
utero  upon its birth;  in the event of uncertain ty as to whether adoption has taken place, the 
matter shall be decided by the Management Board.  
 
(f) "Commute"  shall mean cause to be converted and paid in a lump sum part or the whole of a 
benefit otherwise payable at periodic intervals,  according to the actuarial tables of the Plan. 
 (g) " Dependent " shall mean dependent according to the criteria set forth in Staff Rule  106.13. 
 
(h) " External auditors " shall mean the External Auditors of the WTO. 
 (i) “ Final average remuneration"  (FAR) shall mean the average annual pensionable 
remuneration of a participant during: 
 
 (i)   The thirty-six completed calendar mont hs of highest pensionable remuneration within 
the last five years of the participant's contributory service; or 
 
                                                     
 
1 As amended by the General Council in December 2008. WT/BFA/W/179 
Page 18  
 
   (ii)   If the participant's contributory service was less than five years, the thirty-six 
completed calendar months of highest pens ionable remuneration within the actual 
period of such service; or 
  iii) If the participant's contributory service contained less than thirty-six completed 
calendar months, the actual number of su ch months within the participant's 
contributory service; or 
  (iv) If the participant's contributory service contained no completed calendar month, the 
actual period of such service. 
  
(j) "Interest"  shall mean interest compounded annually at the rates specified in Article 8. 
 (k) " Management Board"  shall mean the Management Board specified in Article 4. 
  
(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. 
 (m) “ Own contributions"  shall mean the contributions, not  exceeding the percentage of the 
participant's pensionable remuneration specified in  Article 20(a), made to the Plan by or on 
behalf of a participant in respect of contri butory service under Article 16, with interest.  
 (n) "Participant" shall mean a member of the WTO staff who is participating in the Plan in 
accordance with the terms of Article 15. 
 
(o) " Part-time " shall mean employment under conditions requiring work during at least half the 
normal weekly working hours prescribed under Staff Rule  106.1(a). 
 (p) "Pensionable remuneration" shall mean the remuneration defined in Article 19. 
 (q) "Restoration" shall mean the inclusion in contributory service of the prior contributory 
service of a former participant who again becomes a participant. 
 (r) "Secondary dependant"  shall mean the mother or father, or an unmarried brother or sister 
under the age of twenty-one, who was dependent on the participant at the date of the participant's death if the participant died in service, or from the date of the participant's 
separation to the date of death if the participant died after separation.   
 (s) "Director-General"  shall mean the Director-General of the WTO. 
 (t) "Separation" shall mean ceasing to be in the service of the WTO. 
 
(u) "Service" shall mean employment as a full-time or part-time member of the staff of the WTO. 
 (v) "Validation"  shall mean the inclusion in contributory service of a period of non-contributory 
service which occurred prior to the commencement of participation. 
 Article 3 Interpretation  
 
 The Management Board shall, to the extent re quired to give effect thereto, interpret these 
Regulations . 
  WT/BFA/W/179 
 Page 19 
 
 
  SECTION 2 
ADMINISTRATION 
 
 
Article 4 
Management Board  
 
(a) The Management Board shall consist of a ch airman elected by the General Council, four 
members and four alternates el ected by the General Council, and four members and four 
alternates appointed by the Director-General, of whom two members and two alternates shall 
be selected by the Director-General from a list dr awn up by the participants.  In addition, the 
beneficiaries may designate an observer. 
 (b) The Chairman and the elected and appointed members and alternates shall hold office for a 
term of three years or until the election or ap pointment of their successors and they shall be 
eligible for re-election or re-appointment.  In the event that the Chairman or a member or 
alternate ceases, during their term, to hold office,  another member or alternate may be elected 
or appointed to hold office during the remainder of the term. 
 (c) Decisions of the Management Board shall nor mally be taken by consensus and otherwise by 
simple majority. 
 Article 5 Administration of the Plan  
 
(a) The Management Board shall be responsible for the management and administration of the 
Plan, with particular regard to its actuarial balance. 
 (b) The management and administration of the Plan shall be in accordance with these Regulations  
and with Administrative Rules  consistent therewith, whic h shall be adopted by the 
Management Board and approve d by the General Council. 
 
(c) The duties and authority of the Management  Board as well as rules for the auditing of 
accounts shall be laid down in rules of pro cedure which shall be a pproved by the General 
Council. 
 (d) The Management Board shall present a report each year to the General Council and to the 
participants, giving in particular: 
  (i) an account of the financial transactions during the year,   (ii) the balance sheet of the Plan,  
 (iii) a summary of changes in Plan membership and of benefits awarded during the year, 
  (iv) a statement of the investment principles being followed by the Management Board,   (v) a summary of the investment performance of the Plan during the year, and a 
description of the assets held at the end of the year, 
  (vi) any other decisions taken in connec tion with the administration of the Plan. 
 WT/BFA/W/179 
Page 20  
 
  (e) An audit of the accounts of the Plan shall be  made annually by the External Auditors, in a 
manner agreed between the External Auditors and the Management Board;  a copy of the 
audit report shall be included in th e report under paragraph (d) above. 
 (f) All expenses incurred in administering the plan , investing plan assets, employing the services 
of professional advisers and those incurred by the WTO in providing facilities for and in 
support of the Management Board shall be borne by the Plan.  Each element shall be separately identified in the annual report. 
 
Article 6 
Secretariat  
 
 The Director-General shall appoint a secretary upon a recommendation from the Management Board.  The appointment of the Secretary shall be subject to regular review by the Management Board.  The Secretary, acting under the authority of the Management Board, shall be qualified to 
apply these Regulations , carry out the decisions of the Management Board and deal with current 
business in accordance with the direc tives of the Management Board.  The Secretary, or the officer 
empowered to act in the absence of the Secretary,  shall certify for payment all benefits properly 
payable under these Regulations . 
 
Article 7 
Consulting actuary and other advisers  
 
 The Director-General shall appoint a consu lting actuary to the Management Board upon  
recommendation of the Board for the purpose of prov iding actuarial services to the Plan.  Such other 
advisers as the Management Board considers appropr iate and necessary shall be appointed by the 
Director-General upon the recommendation of the Board. 
 
Article 8 
Adoption of actuarial bases  
 
(a) The Management Board shall, on the advice of  the consulting actuary, adopt, and revise when 
appropriate, service, mortality and other tables and shall decide upon the rates of interest to be 
used in the periodic actuarial valuation of the Plan and for other actuarial calculations. 
 (b) At least once in every three years the Manageme nt Board shall have an actuarial investigation 
made into the service, mortality and benefit experi ence of the participants and beneficiaries of 
the Plan and shall determine whether the actua rial bases of the Plan should be modified. 
 (c) Without prejudice to paragraph (a) above, the ra te of interest to be used in all calculations 
required in connection with these Regulations  shall be 4 per cent. 
 
Article 9 
Actuarial valuation of the Plan  
 
(a) The Management Board shall have an actuarial valuation made of the Plan at least once every 
three years by the consulting actuary. 
 
(b) The report on the actuarial valuation shall explain the assumptions on which the calculations 
are based, describe the method of valuation used, and state the results and conclusions. 
 (c) The Management Board shall, in the light of the report of the consulting actuary, recommend 
such action as it deems desirable to the Ge neral Council through the Committee on Budget, 
Finance and Administration, which shall both be  provided with copies of the report.  In  WT/BFA/W/179 
 Page 21 
 
 
  making its recommendations, the Management Bo ard shall provide a best estimate of the 
possible implications for the funding of benefits  of maintaining contributions at the existing 
level, and for the funding of contributions of maintaining benefits at the existing level. 
 (d) In the particular case of an actuarial defi cit or surplus, the Management Board shall 
recommend to the General Council any necessary co rrective action.  Such action may include 
an adjustment to contributions and/or benef its or any other measure which the Management 
Board deems appropriate to restore an actuarial balance. 
 
Article 10 
Transfer of pension rights  
 
 The Management Board may, subject to the concurrence of the General Council, approve 
agreements with Member Governments and with in tergovernmental organizations, with a view to 
securing continuity of pension rights  for participants in the Plan.  
 
 
SECTION 3 
ASSETS AND INVESTMENT 
 Article 11 
Assets of the Plan  
 
 The assets of the Plan shall be derived from:  (a) the contributions of the participants, 
 
(b) the contributions of the WTO,  (c) the yield from the investments of the Plan, and  (d) receipts from any other source. 
  
Article 12 
Property in the assets  
 
(a) The assets shall be the property of the Plan  and shall be acquired,  deposited and held, 
separately from the assets of the WTO, on behalf of the participants and beneficiaries of the 
Plan.  The assets shall be used totally and exclusively for the purposes of these Regulations . 
 (b) All monies forming part of the Plan which are not immediately required to be expended for 
the purposes of the Plan shall be invested by th e Management Board in the name of the Plan.  
Monies shall be invested in: 
 
 (i) stocks, shares, debentures, annuities or other policies of assurance or any other 
generally recognized investments, including any interests in property; 
  (ii) any instrument intended to remove  or reduce the adverse effect upon Plan 
investments of fluctuations in the rela tive values of the Swiss franc and other 
currencies in which such investments are held; 
  (iii) any instrument intended to remove  or reduce the adverse effect upon Plan 
investments of fluctuations in the relative values of these investments and some other 
class of investment. WT/BFA/W/179 
Page 22  
 
    
Article 13 
Investment of the assets 
 
(a) The Management Board shall determine th e investment policy after taking professional 
advice and shall appoint investment ma nagers to implement that policy. 
 
(b) The Management Board shall arrange for the ma intenance at all times of detailed accounts of 
all investments held, contributions received, benefits paid, income received on investments 
and all other transactions of the Plan.  The accounts must be sufficient to meet all the 
requirements of Article 5. 
 
Article 14 Currency 
 (a) Contributions, sums payable for restora tion and validation, and benefits under these 
Regulations  shall be calculated in Swiss francs.  The accounts shall be kept in that currency. 
 (b) Benefits may, however, be paid in any curre ncy selected by the beneficiary at the rate of 
exchange for the Swiss franc applicable for th e purposes of the Plan on the date of payment, 
except that the beneficiary may not amend the choice of currency more than once every six 
months. 
 
SECTION 4 
PARTICIPATION, CONTRIBUTORY SERVICE AND CONTRIBUTIONS 
 
 
Article 15 Participation  
 
(a) Every member of the staff of the WTO shall become a participant in the Plan: 
  
 (i) upon taking up a contract for six months or longer, or 
  (ii) upon completing six months of service without an interruption of more than 30 days,  whichever is the earlier, provided that participa tion is not expressly excluded by the terms of the 
contract. 
 (b) Participation shall cease when a benefit becom es payable in respect of a participant, except 
that participation shall not be deemed to have  ceased where a participant resumes contributory 
service within 12 months after separation wit hout a benefit having been paid to that 
participant.  
 Article 16 Contributory Service  
 
(a) Contributory service shall accrue to a particip ant from the date of commencement to the date 
of cessation of participation. 
 (b) Contributory service may accrue in respect of special leave without pay if contributions are 
received by the Plan in accordance with Article 20(c). 
  WT/BFA/W/179 
 Page 23 
 
 
  (c) Additional contributory service may accrue to a participant if prior service is validated or 
restored in accordance with Article 17 or 18.  
 
Article 17 Validation of non- contributory service  
 
(a) Participants may elect, within one year of  the commencement of their participation, to 
validate prior service during which they were not eligible under these Regulations  for 
participation in the Plan, provided that: 
 
 (i) such prior service was with the WTO, 
  (ii) participation succeeded the ending of such service within two years,   (iii) the service was the most recent prio r to their participation and had not been 
interrupted by a break of more than one year, 
  (iv) participation had not, during such servi ce, been expressly excluded by the terms of 
the contract, and 
  (v) the totality of the period open to validation is elected. 
 
(b) A beneficiary of the participant under these Regulations , other than the recipient of a residual 
settlement, may, if the participant has died be fore the expiry of the period within which 
election may be made, make the election on beha lf of the participant within such period. 
 
(c) Validation shall be subject to receipt by the Plan of contributions in accordance with 
Article 20(d). 
 
Article 18 
Restoration of prior contributory service  
 (a) A former participant to whom a benefit under these Regulations , other than a disability 
benefit, has been or is being paid and who agai n becomes a participant, may, within one year 
of the recommencement of participation, elect to restore the prior contributory service.  The 
election may apply only to th e totality of such service. 
 
(b) The prior contributory service of a former participant to whom a benefit under these 
Regulations is due but has not been paid, or to  whom a disability benefit has been or is being 
paid, and who again becomes a participant, shall be restored. 
 (c) A beneficiary of a participant under these Regul ations, other than the recipient of a residual 
settlement, may, if the participant has died befo re the expiry of the period within which the 
election may be made, make the election on beha lf of the participant within such period. 
 (d) Restoration shall be subject to receipt by  the Plan of contributions in accordance with 
Article 20(e). 
  Article 19 Pensionable remuneration  
 The pensionable remuneration shall be as set out in Annex 1 of the Staff Rules  which is 
reproduced in Annex 1 of the present Regulations . 
 WT/BFA/W/179 
Page 24  
 
  Article 20 
Contributions  
 
(a) Each participant shall pay a contribution deducted from the monthly salary and transferred 
directly to the Plan. For periods of service prior to 1 January 2009, 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 service as from 1 January 2009, the contribution of the participant and of the WTO shall corr espond to 8.1 per cent and 16.2 per cent of 
pensionable remuneration, respectively. 
 
(b) The contributions prescribed in paragraph (a ) above shall be paid concurrently with the 
accrual of contributory service under Article 16. 
 (c) Contributions for the purpose of Article 16(b), in respect of special leave without pay, shall be 
payable concurrently with such leave, by th e participant in full, or, in exceptional cases, by 
the WTO in full, or in part by the participant and in part by the WTO. 
 (d) Contributions for the purpose of validation under Article 17 shall be payable, with interest, by 
the participant and by the WTO in the amounts which would have been payable respectively 
by each, had service during the period been contributory. 
 
(e) Contributions for the purpose of restoration unde r Article 18 shall consist of the benefit, other 
than the disability benefit, received by the partic ipant in respect of  the participant's previous 
participation, together with interest fro m the date of payment of the benefit. 
  (f) In any case in which a period of contributory ser vice accrues, or is deemed to accrue, to a 
participant otherwise than in accordance with Ar ticle 16, contributions shall be payable to the 
Plan, with interest, by the participant in the amount which would have been payable had 
service during such period been contributory, and by the WTO in an amount sufficient to meet any additional obligations to be borne by the Plan resulting therefrom. 
 
Article 21 
Guarantee of benefits 
 
 In the event of dissolution of the WTO, the Ge neral Council shall take the necessary steps to 
guarantee the benefits acquired under these Regulations  by participants and bene ficiaries at the date of 
dissolution. 
 
 
SECTION 5 
BENEFITS 
  
Article 22 
Entitlement to benefits  
 
(a) A participant who is not eligible for a retirement benefit under Article 23 or a disability 
benefit under Article 28 may elect on separation to receive either an early retirement benefit, 
or a deferred retirement benefit or a withdrawal  settlement if the participant satisfies the 
conditions of Article 24, 25 or 26, respectively. 
 (b) Retirement, early retirement and deferred retir ement benefits shall be payable at periodic 
intervals for life. 
  WT/BFA/W/179 
 Page 25 
 
 
  Article 23 
Retirement benefit  
 
(a) A retirement benefit shall be payable to a participant whose age on separation is the normal 
retirement age or more and whose contributory service was five years or longer. 
 
(b) The benefit shall, subject to paragraph (c) below, be payable at the standard annual rate 
obtained by multiplying the first 30 years of contributory service by 2 per cent of FAR and the years of contributory service in excess of 30,  but not exceeding ten, by 1 per cent of FAR. 
 
(c) The benefit may be commuted at the request of  the participant into a lump sum not exceeding 
1/3 of the actuarial equivalent of the bene fit or the amount of the participant's own 
contributions, whichever is the larger. 
 
Article 24 
Early retirement benefit  
 
(a) An early retirement benefit shall be payabl e to a participant whose contributory service was 
five years or longer, provided that the pe riod remaining between the effective date of 
retirement and the date corresponding to the  participant's normal retirement age shall not 
exceed five years. 
 
(b) The benefit shall be payable at the standard annual rate for a retirement benefit, reduced by 
3 per cent of such benefit for each year between the date the benefit becomes effective and the 
date corresponding to the participant's normal re tirement age, except that, if the contributory 
service of the participant was 30 years or longer, the benefit shall be reduced by 1 per cent per 
year. 
 (c) The benefit may be commuted at the request  of the participant into a lump sum on the 
conditions specified in Article 23.  
 
Article 25 
Deferred retirement benefit  
 
(a) A deferred retirement benefit shall be payable to a participant whose age on separation is less 
than the normal retirement age and whose contributory service was five years or longer. 
 
(b) The benefit shall be payable at the standard  annual rate for a retirement benefit and shall 
commence at the normal retirement age, or, if th e participant so elects, at any age not less 
than 55, provided that in su ch event it shall be reduced in  the same manner and under the 
same conditions as specified in Article 24. 
 (c) The benefit may be commuted at the request of  the participant into a lump sum equivalent to 
the participant's own contributions. 
 
Article 26 
Withdrawal settlement  
 (a) A withdrawal settlement shall be payable to a participant whose age on separation is less than 
the normal retirement age, or if the participant is at the normal retirement age or more on separation but is not entitled to a retirement benefit. 
 (b) The settlement shall consist of 10 per cent of  FAR for each of the first 20 years of service.  WT/BFA/W/179 
Page 26  
 
  Article 27 
Deferment of payment or choice of benefit  
 
(a) The payment to a participant of a withdrawal settlement, or the exercise by a participant of a 
choice between one benefit and a nother, or between a form of benefit involving payment in a 
lump sum and another form, may be deferred at th e request of the participant at the time of 
separation for a period of 12 months. 
 (b) A participant who has deferred a choice under pa ragraph (a) above shall, if the choice is not 
made within the specified period, be deemed to  have chosen a deferred retirement benefit if 
the participant's age on separation was less than the normal retirement ag e, and in any event a 
form of benefit payable otherwise than in a lump sum.  
 
Article 28 
Disability benefits 
 
(a) A total disability benefit shall, subject to Artic le 34, be payable to a participant who is found 
by the Management Board to be fully incapac itated for further service reasonably compatible 
with the participant's abilities, due to injury or illness constituting an impairment to health 
which is likely to be permanent or of long duration. 
 
(b) The total disability benefit shall commence on sep aration or, if earlier, on the expiration of the 
paid leave due to the participant and shall con tinue for as long as the participant remains fully 
incapacitated, provided that after age 55 incap acity shall be deemed to be permanent. 
 (c) The total disability benefit shall, if the age of the participant on entitlement is the normal 
retirement age or more, be payable at the standard annual rate for a retirement benefit.  If the 
age of the participant is less than the normal re tirement age, the benefit shall be payable at the 
rate of the retirement benefit which would have been payable had the participant remained in 
service until the normal retirement age and had the participant's FAR remained unchanged. 
 (d) A partial disability benefit shall, subject to Article 34, be payable to a participant who is 
found by the Management Board to be par tially incapacitated due to injury or illness 
constituting an impairment to health and who, as a consequence of that incapacity, is assigned 
to other duties at a reduced salary. 
 (e) The partial disability benefit shall be payable at  the rate of the retirement benefit which would 
be payable if the participant remained in ser vice until the normal retirement age and if the 
participant's FAR were equal to the difference between the participant' s FAR before and after 
the assignment to duties at a reduced salary. 
 (f) A benefit which is discontinued shall, if a pa rticipant who has been separated does not upon 
such discontinuance again become  a participant, be converted to a deferred retirement benefit 
if the participant would have been so eligible at the date of separation.  Otherwise, a single 
payment shall be made of the balance between  the value of the withdrawal settlement under 
Article 26 and the value of paymen ts received under this Article. 
 (g) The Management Board shall prescribe the exte nt to which and the circumstances in which a 
disability benefit shall be reduced or when it sha ll be terminated as the beneficiary's degree of 
incapacity changes, when the beneficiary is  in paid employment or in such other 
circumstances as the Management Board deems appropriate.  
  WT/BFA/W/179 
 Page 27 
 
 
  Article 29 
Surviving spouses's benefit 
 
(a) A benefit shall be payable to the surviving s pouse of a participant who died in service or who 
was entitled to a retirement, early retirement, deferred retirement or disability benefit at the 
date of death, if the spouse was married to the pa rticipant at the date of death in service or, if 
the staff member were separated prior to death,  the spouse was married to the participant at 
the date of separation and remained ma rried to the participant until death. 
 (b) The benefit shall, if the participant died in  service or during entitlement to a retirement, early 
retirement or disability benefit, be payable at the standard annual rate of 60 per cent of the 
retirement or disability benefit which would have b een payable to the participant at the date of 
death, or of 60 per cent of the retirement, early retirement or disability benefit including such part thereof as may have been commuted, as the case may be. 
 
(c) The benefit shall, if the participant died  after the commencement of a deferred retirement 
benefit, be payable at the rate of 60 per cent of  the annual rate of such benefit and, if the 
participant died before its commencement, at the rate of 60 per cent of th e actuarial equivalent 
at the date of death of the annual rate of  the benefit at the normal retirement age. 
 (d) The benefit shall be payable at periodic intervals for life or until remarriage, provided that a 
benefit payable at an annual rate of less th an 2000 Swiss francs may be commuted by the 
surviving spouse into a lump sum which is the actuarial equivalent of the benefit at the 
standard annual rate under para graph (c) above, as the case may be. 
 (e) The benefit shall, where there is more than one surviving spouse, be divided equally between 
the spouses, and upon the death or remarriage of each such spouse shall be equally divided 
among the remainder. 
 (f) A lump sum in the amount of twice the annual ra te of the benefit shall, unless paragraph (e) 
applies, be payable to a surviving spouse upon remarriage. 
 Article 30 Child's benefit  
 
(a) A child's benefit shall, subject to paragraphs (b) and (c) below, be payable to each child of a 
participant who is entitled to a retirement, early  retirement or disability benefit or who has 
died in service, while the child remain s unmarried and under the age of 21. 
 (b) A benefit shall be payable to a child who is over the age of 21 if the child is found by the 
Management Board to have been incapacitate d by illness or injury for substantial gainful 
employment: 
 
 (i) on reaching the age of 21, if immediately prior thereto a child's benefit was payable;  
or 
  (ii) at the time of death in service or en titlement to a benefit of the participant. 
 
 A benefit payable as above shall continue for as long as the child remains incapacitated. 
 (c) A benefit shall, notwithsta nding paragraphs (a) and (b) above , not become payable, if the 
participant has chosen an early retirement be nefit, until the participant dies or reaches the 
normal retirement age, except to a child under th e age of 21, found by the Management Board 
to be disabled. WT/BFA/W/179 
Page 28  
 
  (d) Subject to paragraphs (e) and (f) below, the be nefit shall be payable during the continuance of 
any periodic benefit resulting from retirement, ear ly retirement or disability, or, in the event 
of death of the participant, at the annual rate of one third of the bene fit which was or would 
have been payable to the participant, subject to a minimum of the amount corresponding to one half of that specified in Annex 2(b)(i) of the Staff Rules and a maximum of the amount 
corresponding to that specified in Annex 2(b)(i) of the Staff Rules, expr essed in Swiss francs 
per annum.  
 (e) If no other periodic benefit is payable and there is no surviving parent able, in the opinion of 
the Management Board, to support the child or if the other periodic benefit payable is to a 
surviving spouse who is not a natural or adoptive parent and does not have custody of the 
child, and subject to paragraph (f) below, the bene fit shall be payable at the rate in paragraph 
(d) above, increased by: 
  (i) 25 per cent of the retirement, early retir ement or disability benefit from which it is 
derived, if one child's benefit is payable, and 
  (ii) 50 per cent of the retirement, early re tirement or disability benefit from which it is 
derived, and divided by the number of eligible  children, if more than one such benefit 
is payable. 
 
(f) The total benefits payable under paragraphs (d ) and (e) above, added to any retirement, early 
retirement, disability or surviving spouse's benef it shall not exceed the FAR of the participant 
at the time of separation from service. 
 (g) Benefits payable under this Article shall be  recalculated as may be required to achieve the 
purposes of paragraphs (e) and (f) above.  
 
Article 31 
Secondary dependant's benefit  
 
(a) A secondary dependant's benefit shall, subject  to paragraph (b) below, be payable to the 
surviving secondary dependant of a particip ant who was entitled to a retirement, early 
retirement, deferred retirement or  disability benefit at the date of death, or who died in 
service. 
 (b) A benefit shall nevertheless not be payable: 
 
 (i) where a benefit is or was payable to a child or to the surviving spouse of the 
participant;  and 
  (ii) in the case of a brother or sister, wher e the benefit payable to the participant was a 
deferred retirement benefit. 
 
(c) The benefit shall be payable at the following rates:   (i) in the case of a mother or father, at th e rates and under the conditions applicable in 
Article 29, save that the Management Board may, in the event of remarriage, decide 
in its discretion to continue the benefit; 
  (ii) in the case of a brother or sister, at the rate applicable in Article 30.  (d) The benefit shall be payable to the person d esignated by the participant or, in the absence of 
such designation or person, to the pers on designated by the Management Board.   WT/BFA/W/179 
 Page 29 
 
 
  Article 32 
Cost-of-living adjustment of benefits  
(a) The system of cost-of-living adjustment of benefits provided for in paragraphs (b) – (j), 
below, is intended to ensure the maintenance of purchasing power of periodic benefits, in the 
currency in which those benefits are paid.  The sy stem of adjustment shall apply to retirement, 
early retirement, deferred retirement, disabilit y, surviving spouse's, child's and secondary 
dependant's periodic benefits.  It  shall not apply to withdrawal or other lump-sum payments. 
 (b) In the case of benefits paid in Swiss francs, the benefit shall be adjusted on 1 January of each 
year according to the annual movement of the Swiss consumer price index. 
 (c) Where, in accordance with Article 14, the be neficiary selects a currency other than the Swiss 
franc, the benefit will continue to be adjusted  in the manner described in paragraph (b), 
above. 
 
(d) Alternatively, a beneficiary may opt to subm it proof of residence in a country other than 
Switzerland and request payment of the benef it in local currency in accordance with the 
procedure described below. 
 (e) If satisfactory proof of residence is provide d within six months from the date of initial 
entitlement, the local currency amount shall be computed from that date, with retroactive 
adjustment if it results in a greater benefit.  Otherwise, the local currency amount shall be 
computed as of the first day of the quarter following acceptance of proof of residence. 
 (f) Subject to paragraphs (d) and (e), above, the local currency amount of the benefit shall be 
calculated by applying to the Swiss franc be nefit the average, computed over the 36 
consecutive calendar months up to and including the month of separation, of the exchange 
rates between the Swiss franc and the currency of the country of residence. 
 (g) The local currency amount of the benefit cal culated in accordance with paragraphs (d), (e) 
and (f), above, shall be adjusted for the first time on the 1 January following the date of the 
first payment, according to the annual movement of the official consumer price index for the 
country concerned. 
 (h) For the adjustment of deferred retirement bene fits, the reference date for the application of 
paragraphs (b) and (g), above, shall be the date  of separation from service of the beneficiary. 
 
(i) Where the cost of living in the country of r esidence is more than 10 per cent higher or lower 
than in Switzerland, an initial cost-of-living di fferential factor shall be applied to the local 
currency amount of the benefit calculated in accordance with paragraphs (d), (e) and (f) 
above. 
 
(j) In exceptional cases, such as hardship, and with  the prior approval of the Management Board, 
a beneficiary in receipt of a benefit calculated in local currency in accordance with paragraphs 
(d)-(i) above, may revert to payment of the bene fit in accordance with paragraphs (b) and (c), 
above. 
 WT/BFA/W/179 
Page 30  
 
  Article 33 
Residual settlement  
 
(a) A residual settlement shall be payable if, upon the death of a participant and the exhaustion, 
as the case may be, of any entitlements due under these Regulations  to the survivors, the total 
amount of the benefits paid to, and on the acc ount of, the participant is less than the 
participant's own contributions. 
 (b) The settlement shall be payable to a benefici ary designated by the participant and alive when 
the payment is due;  failing such beneficiary, th e settlement shall be paid to the estate of the 
participant. 
 (c) The settlement shall consist of the participant' s own contributions at the date of separation or 
death in service, reduced by the total amount of the benefits paid to, and on the account of, the 
participant. 
  
Article 34 
Limitation of entitlements during special leave without pay  
 
(a) Entitlement to a disability benefit, or to a be nefit payable in case of death, during a period of 
special leave without pay granted for the performan ce of military service, shall instead be to a 
withdrawal settlement calculated as of the day immediately preceding the commencement of 
such leave, in accordance with Article 26. 
 (b) In the event that a particip ant becomes entitled to a retirement, early retirement or deferred 
retirement benefit on separation during a period of special leave without pay, a widow's, 
widower's, child's or secondary dependant's be nefit shall not be payable unless entitlement 
thereto would have existed had the particip ant died on the day immediately preceding the 
commencement of such leave. 
 
Article 35 
Effect of re-entry into participation  
 
(a) If a former participant who is entitled to a re tirement, early retirement or deferred retirement 
benefit under these Regulations again becomes a part icipant, entitlement to such benefit or to 
a benefit derived therefrom shall be suspe nded and no payment shall be made until such 
participant dies or is again separated. 
  
(b) Such a participant who is again separated afte r at least five years of additional contributory 
service shall also be entitled, at the time of su ch subsequent separation, in respect of such 
service and subject to paragraph (d) below, to  a retirement, early retirement or deferred 
retirement benefit, or a withdrawal settlement as the case may be. 
 
(c) Such a participant, who is again separated afte r less than five years of additional contributory 
service, shall, in respect of su ch service, become entitled to: 
  (i) a withdrawal settlement under Article 26;  or  
 (ii) subject to paragraph (d) below, a retir ement, early retirement or deferred retirement 
benefit, as the case may be, based on the length of such add itional contributory 
service;  provided, however, that such bene fit may not be commuted into a lump sum, 
in whole or in part, and shall not be subject to any minimum provisions. 
  WT/BFA/W/179 
 Page 31 
 
 
  (d) Payment of benefits under paragraph (b) or (c)(ii) above shall commence on the date of the 
resumption or commencement, as the case may be, of payment of benefits suspended under paragraph (a) above.  In no event shall the total benefits payable to or on account of a former 
participant in respect of separate periods of  contributory service exceed the benefits which 
would have been payable had participa tion in the Plan been continuous.  
 
 
SECTION 6 
GENERAL PROVISIONS 
 
 
Article 36 Medical examination  
 Every participant in the Plan shall be re quired to undergo a medical examination in 
accordance with the standards prescr ibed by the Management Board, unless the Management Board 
accepts the findings of an earlier medical examination.  
Article 37 
Information from participants and beneficiaries  
 (a) A participant or beneficiary may be requi red to supply information, and to furnish 
documentary or other proof thereof, in respect of any matter on which information or proof is 
required by the Management Board for the purposes of these Regulations . 
 (b) Failure to supply such information or proof, or the omission or misrepresentation of any 
material fact therein, shall enable the Mana gement Board to redetermine the entitlements of 
the participant or beneficiary under these Regulations , provided that entitlement to 
participation or to a benefit shall not be less favourable than if the information or proof had 
been supplied or truly represented.  
 
Article 38 
Recovery of indebtedness to the Plan  
 
 The Management Board may deduct from any benefit payable under these Regulations  to a 
participant, or on the participant's account, the amount of any indebtedness to the Plan by the 
participant or by any beneficiary or third pe rson to whom payment has been made otherwise 
than in accordance with these Regulations .  
 
Article 39 
Interest on unpaid benefits  
 
 The Plan shall not be liable for interest on an y due but unpaid benefits, except where it is 
ascertained that the non-payment is attributable to a failure by the Plan to meet its obligations 
with respect to participants or beneficiaries. 
  
Article 40 
Non-assignment of rights  
 
 Participants or beneficiaries may not assign their rights under these Regulations . 
    WT/BFA/W/179 
Page 32  
 
  Article 41 
Forfeiture of benefits  
 
(a) The right to a withdrawal settlement or residual settlement shall be forfeit if for two years 
after payment has been due the beneficiary has failed to submit payment instructions or has 
failed or refused to accept payment. 
 (b) The right to a retirement, early retirement, deferred retirement or disability benefit shall be 
forfeit if for five years after the first payment has been due the beneficiary has failed to submit payment instructions or has failed or refused to accept payment. 
 
(c) The right to continued periodic payments of a retirement, early retirement, deferred retirement 
or disability benefit shall be forfeit if for two y ears after a periodic payment has been due the 
beneficiary has failed to submit payment inst ructions or has failed or refused to accept 
payment. 
 
(d) The right to a benefit shall nevertheless not be  forfeit under paragraphs (a ), (b) or (c) above if 
its exercise has been prevented by circumst ances beyond the control of the beneficiary. 
 (e) The Management Board may, if in its opini on there are circumstances which so warrant, 
restore the right to any benefit which has been forfeited.  
 
Article 42 
Jurisdiction of the ILO Administrative Tribunal  
 
(a) Applications alleging non-observance of these Regulations  arising out of decisions of the 
Management Board may be submitted directly to the ILO Administrative Tribunal by: 
  (i) any member of the staff who is eligible under Article 15 of these Regulations  as a 
participant in the Plan, even after empl oyment has ceased, and any person who has 
succeeded to the rights u pon the death of such member of the staff; 
 
 (ii) any other persons who can show th at they are entitled to rights under these 
Regulations  by virtue of the participation in the Plan of a member of the staff. 
 (b) In the event of a dispute as to whether the Tribunal has competence, th e matter shall be settled 
by a decision of the Tribunal. 
 
(c) The decision of the Tribunal shall be final and without appeal.  (d) The time-limits prescribed in Article 7 of th e Statute of the Tribunal are reckoned from the 
date of the communication of the contested decision of the Management Board.  
 
 
SECTION 7 
AMENDMENT AND ENTRY INTO FORCE 
  
Article 43 
Amendment  
(a) The Management Board may recommend amendm ents to these Regulations to the General 
Council, which may amend these Regulations afte r consultation with the Management Board. 
  WT/BFA/W/179 
 Page 33 
 
 
  (b) The Regulations so amended shall enter into force as from the date specified by the General 
Council but without prejudice to rights to benef its acquired through contributory service prior 
to that date.  The amended Regulations  shall apply to all rights acquired after the date of the 
amendment, including those of serving staff. 
  Article 44 Entry into force  
 
 These Regulations  shall enter into force with effect from 1 January 1999. 
 
 
SECTION 8 
TRANSITIONAL PROVISIONS 
  
Article 45 
Transitional provisions  
 
(a) Members of the staff transferring from the United Nations Joint Staff Pension Fund 
(UNJSPF) to the Plan on 1 January 1999 sha ll not be required to undergo the medical 
examination provided for under Article 36. 
 
(b) Members of the staff transferring from the UNJSPF to the Plan on 1 January 1999 shall be 
credited with the equivalent actuarial value, calculated in accordance with these Regulations, 
of the Swiss franc retirement benefit which they had accrued in the UNJSPF based on their contributory service and FAR up to 31 December 1998.  For that purpose, their prior 
contributory service shall be adjusted on the date of transfer to yield the same value of 
accrued benefit under these Regulations as they  had accrued in the UNJSPF.  The same 
procedure shall apply in respect of the valid ation under Article 17 of these Regulations of 
service prior to 1 January 1999. 
 (c) Where the scale of pensionable remuneration of members of the staff transferring from the 
UNJSPF to the Plan on 1 January 1999 would be  lower as a result of the application of 
Article 19 of these Regulations than under artic le 54 of the UNJSPF Regulations, the latter 
scale shall continue to apply to those staff me mbers until it is overtaken by the scale provided 
for under Article 19 of these Regulations. 
  
(d) Where the early retirement reduction factors app licable to members of the staff transferring 
from the UNJSPF to the Plan on 1 January 1999 w ould be higher as a result of the application 
of Article 24 of these Regulations than unde r article 29 of the UNJSPF Regulations, the 
provisions of the latter article shall continue  to apply to those members of the staff. WT/BFA/W/179 
Page 34  
 
  ANNEX 1 – TABLE 1 
 
Annual Net Salary and Pensionable Re muneration Scale effective 1.1.2008
 
(in Swiss francs) 
 
Range 
  
Grade  
Minimum Maximum  
Increment 
 
1 Net Salary 
Pensionable Remuneration 52,687 
59,266 71,800 
84,800 2,160 
2 Net Salary 
Pensionable Remuneration 57,420 
65,481 78,270 
94,244 2,297 
3 Net Salary 
Pensionable Remuneration 62,572 
72,187 85,283 
104,348 2,440 
4 Net Salary 
Pensionable Remuneration 68,258 
79,890 93,032 
115,783 2,594 
5 Net Salary 
Pensionable Remuneration 74,695 
88,987 101,791 
128,703 2,764 
6 Net Salary 
Pensionable Remuneration 81,799 
99,198 111,489 
143,413 2,945 
7 Net Salary 
Pensionable Remuneration 93,303 
116,121 127,166 
168,454 3,266 
8 Net Salary 
Pensionable Remuneration 116,562 
151,399 155,543 
215,344 3,497 
9 Net Salary 
Pensionable Remuneration 138,479 
186,630 179,447 
256,866 3,600 
10 Net Salary 
Pensionable Remuneration 164,802 
231,203 200,094 
293,264 3,790 
11 Net Salary 
Pensionable Remuneration 193,743 
281,808 220,732 
329,599 2,131 
12 Net Salary 
Pensionable Remuneration 211,306 
313,046 230,034 
346,228 2,324 
ADG Net Salary 
Pensionable Remuneration 245,441 
373,464   
DDG Net Salary 
Pensionable Remuneration 265,907 
410,097   
  WT/BFA/W/179 
 Page 35 
 
 
  ANNEX 1 – TABLE 2 
 
Pensionable remuneration scale applicable to staff members in grades 1-7  
recruited before 1 September 1995  
(in Swiss francs) 
 
 
 
Range 
  
Grade 
  
Minimum 
 Maximum 
 
1 
  
63,791  
88,030 
 
2 
  
69,777  
96,292 
 
3 
  
76,292  
105,452 
 
4 
  
83,525  
115,783 
 
5 
  
91,740  
128,703 
 
6 
  
100,861  
143,413 
 
7 
  
116,121  
168,454 
 WT/BFA/W/179 
Page 36  
 
  ANNEX 1 – TABLE 3 
 
Unified WTO salary scale for short-term appointments.
 
Effective 1 January 2008  
(in Swiss francs) 
 
VAN BREDA HEALTH 
INSURANCE PLAN TRAVEL TIME 
STAFF MEMBER   GRADE MONTHLY 
PENSION 
CONTRIBUTION DAILY 
RATES MONTHLY
RATES 
FULL-
TIME HALF-
TIME DAILY MONTHLY 
                
1 370.40 163.10 4,390.60 1.50 2.50 122.05 100.20
           
2 409.25 177.75 4,785.00 1.50 2.50 129.40 106.75
           
3 451.15 193.70 5,214.35 1.50 2.50 137.35 113.90
           
4 499.30 211.35 5,688.15 1.50 2.50 146.20 121.80
           
5 556.15 231.25 6,224.60 1.80 2.60 156.15 130.75
           
6 620.00 253.25 6,816.60 1.80 2.60 167.15 140.60
           
7 725.75 288.85 7,775.25 1.80 2.60 184.95 156.60
           
8 946.25 360.85 9,713.50 2.20 2.80 220.95 188.90
           
9 1,166.45 428.75 11,539.90 2.20 2.80 254.90 219.35
           
10 1,445.00 510.20 13,733.50 2.50 3.00 295.60 255.90
           
11 1,761.30 599.80 16,145.25 2.80 3.15 340.40 296.10
           
12 1,956.55 654.20 17,608.85 2.80 3.15 367.60 320.50
                
        
For non-local short-term appointments, a supplem ent of CHF 81.00 per day (for daily contracts) 
and CHF 1,620.00 per month (for monthly contracts) is payable.   
 
 
__________