Compensation for staff and dependants

(1) At its 9th session (July 1950: CC/A.9/SR.1; CO-ORDINATION/R.83) the Committee adopted a provisional scale of benefits to serve as a basis for financial studies and a programme for future work. It also approved a provisional scale of benefits applicable to technical assistance experts. The matter was further discussed at the 11th session (1951: CC/A.11/SR.9; CO-ORDINATION/R.93).

(2) At the 12th and 13th sessions (April and September 1952: CO-ORDINATION/R.124 and R.132) the Committee elaborated a set of provisional rules governing compensation to staff members in case of death, injury or other disability attributable to service - see Annex III (and its two addenda) to CO-ORDINATION/R.132. It was agreed that the plan would be further considered at the next session of the Committee. ILO was to make a study of the manner in which an annuity form of benefit might be fitted into the rules as an alternative to the lump-sum provisions in the case of permanent partial disabilities. Regarding the relationship of other benefits under the Staff Rules to compensation payments under the social security plan, the Committee, after reviewing its initial proposals, agreed on a series of recommendations contained in para. 54 of section D.X of CO-ORDINATION/R.132.

(3) At the 12th session (April 1952: CO-ORDINATION/R.124, section IV.C.20) CCAQ advised TAB that death and disability insurance should not be provided for fellows and scholars, but that as regards compensation for death or disability attributable to service the same social security plan should be applied to experts as to staff members. The question of experts was referred back by TAB to CCAQ, which at its 14th session (April 1953: CO-ORDINATION/R.142, paras. 92-99) felt that, pending the establishment of a common compensation scheme for regular staff which could be made applicable to experts, great caution should be exercised in extending either the regular compensation benefits or compensation fund benefits to experts not employed in "continuous" posts. As regards compensation for service-incurred death or disability, the Committee thought that the provisions of article 38 of the TAB Personnel Manual should, subject to a few amendments indicated in para. 95 of the Committee's report, continue to apply to all experts in "project" posts.

(4) At the 15th session (April 1954: CO-ORDINATION/R.162) during a further discussion on measures for co-ordination in compensation matters, UN proposed that the Committee recommend to TAB certain amendments to article 247 (Compensation for service-incurred death or disability) of the TAB Personnel Manual, particularly concerning the period of continuance of compensation in the case of temporary disability. The Committee decided to defer making a recommendation to TAB on this matter pending an opportunity for technical review of the amendments proposed by UN. Should correspondence on the matter result in agreement, a re-draft of article 247 would be transmitted to TAB as a recommendation of CCAQ. (It was in fact agreed at the first part of the 16th session: April 1955: CO-ORDINATION/R.193/Rev.1.) On the request of ILO, the Committee however, decided to recommend to TAB that an amendment of article 247 was desirable so as to restrict the applicability of the article to death, injury, sickness or other disability arising out of and in the course of performing official duties.

(5) Also at the 14th and 15th sessions (1953 and 1954: CO-ORDINATION/R.142, paras. 85-88, and R.162, paras. 38-42) CCAQ concluded, on the basis of a survey carried out by the actuary of the Joint Staff Pension Fund, that the cost to agencies of a common fund would far exceed commercial premiums paid by specialized agencies and that the concept of a common fund was not practical either financially or administratively. The Committee agreed, however, that the method of financing in individual organizations should henceforth be subject to review and discussion in the Committee.

(6) At the 16th (first part) and 17th (second part) sessions (April 1955 and April 1956: CO-ORDINATION/R.193/Rev.1 and R.224, paras. 35-37) CCAQ reviewed the position in regard to the application of common compensation rules and asked UN to circularize a comparative presentation of existing compensation texts, to enable CCAQ to improve the standard text for staff rules. As regards the setting-off of Pension Fund benefits against compensation entitlements, the Committee agreed that the set-off would not be applied with respect to additional benefits purchased by voluntary deposits under Article XVIII of the Pension Fund Regulations, the organizations retaining discretion in cases where they paid all or part of the voluntary deposit.

(7) Also at the 17th session (second part) (April 1956: CO-ORDINATION/R.224, paras. 41-43) CCAQ reviewed a UN proposal for supplementing the compensation provided by TAB (article 247 -see paragraph (4) above) by a schedule of lump-sum indemnities to apply in the event of permanent disability. It approved the schedule of medical assessment for computation of benefits and decided to submit it to TAB. The schedule forms Annex III to the Committee's report. The Committee further decided to ask TAB to include in its Manual of Personnel Policies for Experts, as and when revised, provisions under which persons receiving programme appointments would cease to be covered by article 247 when they entered the Pension Fund, coming as of that time under normal compensation scheme for service-incurred death and disability.

(8) At the 20th session (April 1959: CO-ORDINATION/R.295, paras. 56-59) CCAQ decided to make a comprehensive review of existing staff compensation plans and of the principles on which they were based. The Committee requested UN to bring up to date the compendium of illustrative cases. It further decided that it would not be desirable for the organizations to adopt a regulation excluding the possibility that mental illness might be found to be service-incurred. It nevertheless requested UN to study and report on (i) the screening procedures for assessing mental history and stability that may be practical at recruitment, and (ii) the technical problems arising from the admissibility and appraisal of medical evidence concerning mental illness attributable to service.

(9) At the first part of the 21st session (April 1960: CO-ORDINATION/R.325, paras. 65-70) UNESCO, which had been asked to prepare documentation for the review referred to in paragraph (8) above, reported that while the texts of the rules of the various organizations were not identical, there appeared to be no fundamental difference, the substance of each plan conforming to the principles adopted by CCAQ in 1952. On the other hand, the wording of the rules was general and could result in different interpretations of the same text in different organizations. Accordingly, as the next step in the review, UN was requested to start an indexing service covering all decisions on compensation cases in all organizations. A framework of index headings would be established by UN after consultation with the agencies, and thereafter each organization would send to UN a copy of the decisions of its compensation board (or equivalent body) omitting names, etc. UN would assign the index number, and redistribute copies of the decisions to all agencies, which could then build up an indexed volume of decisions. The index would take the place of the "compendium of illustrative cases". On the assumption that the index would be established before the next CCAQ session, the Committee decided to defer arrangements for an analytical review of cases. The nature of any revision of the rules would depend on such a review. Certain aspects were however discussed. CCAQ was not prepared to accept, for universal application, the principle that accidents on the way to and from work should be deemed to be "service-incurred". It took note of the UN report (see paragraph (8) above) on pre-employment screening and medical evidence in mental cases. It asked organizations to provide data on selected case decisions involving the liability of organizations towards staff in travel status.

(10) At the first part of the 22nd session (January and March 196l: CO-ORDINATION/R.351, paras. 31-33) CCAQ considered the impact of the revision of the pension scheme upon the rules regarding compensation. It decided that a complete review and redrafting of the latter was desirable, and that pending a revision of the scheme, compensation in the form of annuities, awarded in cases arising on or after 1 April 1961, should be calculated on the new "pensionable remuneration". There was, however, to be no retroactivity in respect of payment to existing beneficiaries.

(11) At the second part of the 22nd session (July 1961: CO-ORDINATION/R.373, paras. 36-37) the agreement recorded in paragraph (10) above was modified to provide that the decision to calculate benefits on the new level of pensionable remuneration should apply also to all benefits of a continuing status in course of payment on 1 April 1961; that is, even though awarded before 1 April 1961, benefits to staff members for total incapacity and death benefits to widows and other eligible dependants, which were being paid in annuity from 1 April 1961, would be increased to the level they would have attained had they been calculated on the new level of pensionable remuneration. The Committee also agreed on a complete review and redrafting of the "common scheme" by 1962, and agreed that "such other changes ... resulting from the review as may be considered appropriate" should be applied to continuing benefits in course of payment.

(12) At the 23rd session (March 1962: CO-ORDINATION/R.391, paras. 56-59 and Annex B) the Committee approved the first stage of the review of the rules, which had been carried out by a working party on the basis of a Staff Office draft (see CO-ORDINATION/CC.23/3). The proposed revised rules (i) based compensation on the "half-gross" level of pensionable remuneration; (ii) increased the amount of compensation in respect of dependants; (iii) defined minimum amounts of compensation in terms of formulae relevant for all duty stations. CCAQ agreed that the revised rates should be applied to all annuities in course of payment on the effective date of the change, with retroactive effect to 1 April 1961 (WHO making a reservation on this latter point). The total compensation payable would, as hitherto, be subject to deduction in respect of Pension Fund benefits, but these deductions would in no case exceed 90 per cent of the compensation. It was noted that while the substance of the revisions could be approved by ACC, the precise wording of the rules might require minor changes before presentation to UN General Assembly. Organizations following Appendix D to UN Staff Rules would not apply the revisions until UN had advised them of the final text. The further stages of the review, aimed at elaborating a set of definitive rules applicable to all organizations, and methods to ensure their uniform application, would continue through Staff Office in 1962/63.

(13) At the 24th session (March 1963: CO-ORDINATION/R.430, paras. 39-40) CCAQ discussed an interim report (CO-ORDINATION/CC.24/16) on the further revision of the rules, which, the Committee agreed, needed to be clarified and amplified in the interests of common practice with respect to awards. There were, however, divergent opinions with respect to the question whether there should be a single inter-organization administration of common rules. Similarly, although there was general agreement that self-insurance was desirable, there were divergent opinions whether it would be advisable to have a joint compensation fund.

(14) At its 25th session (April 1964: CO-ORDINATION/R.451, paras. 6 and 117) CCAQ noted from a Staff Office report (CO-ORDINATION/CC/SO/84) that no progress had been made, and considered whether the whole matter should be referred to a panel of experts. It decided that it would be preferable to make a further attempt to resolve inter-organization differences within CCAQ. UN and ILO were therefore requested to consult together at a mutually agreeable time in order to prepare, if possible, agreed proposals for the 26th session of CCAQ.

(15) At its 26th session (March 1965: CO-ORDINATION/R.488, paras. 37-40) CCAQ accepted with minor amendments the report of a working party which had reached a measure of agreement on the scope of the compensation rules, the definition of contingency, the revaluation of awards in the event of changes in awards from other sources, causal relationship between illness and service, and a number of other matters (see Annex D, CO-ORDINATION/R.488). The working party report refers to mental and endemic illnesses and accidents on the way to or from work.

(16) At its 37th session (March 1973: CO-ORDINATION/R.984, paras. 17-20, and Annex D) CCAQ approved recommendations of a working party on definitions of dependants, duration of benefit for loss of earning capacity and survivors' benefits. It also decided that further studies should be made of certain questions, and that a renewed effort should be made to compile a compendium of organizations' principles and practices.

(17) At its 39th session in March 1974 (CO-ORDINATION/R.1031, paras. 35 to 38) CCAQ established a working party, for which UN agreed to provide the secretariat and with which the Secretary of JSPB was to be associated, to review the existing compensation rules of the organizations, proposed revised rules and draft a scheme for common funding of compensation awards and uniform administration of the rules. The Working Party was requested to report to te 41st session of CCAQ.

(18) The Working Party to which reference is made in para. (17) made a provisional report to the 41st session of CCAQ (March 1975) and was charged with continuing its task. (CO-ORDINATION/R.1087, paras. 73 to 75). It made a further report to the Special Session in August 1975 recommending an interim revision of the table of lump sums. This was approved with effect from 1 January 1976 (CO-ORDINATION/R.113, para. 37).

(19) At its 46th session (January 1977: CO-ORDINATION/R.1203, para. 29), CCAQ took note of the report of the working party on its fourth meeting (August 1976) and asked it to complete its review of the rules governing compensation and to submit its report to CCAQ's 47th session.

(20) At part II of its 46th session (February-March 1977: CO-ORDINATION/R.1208, para. 27(g)), in connexion with a proposal by FAO and IAEA to introduce a voucher system for home leave travel, CCAQ reaffirmed its position that on official travel of any nature a staff member should be covered by the organization's compensation rules.

(21) The working party referred to above duly reported to CCAQ at its 47th session (August 1977: CO-ORDINATION/R.1237, paras. 29-31) and CCAQ noted that 6 organizations were in principle ready to participate in a commonly administered and jointly funded compensation scheme. The Committee also decided that studies which the working party had suggested to complete its task should be made so that the final report could be considered at the 48th session (January 1978).

(22) At its 48th session (Part II) (February-March 1978: CO-ORDINATION/R.1263 (Part II), para. 18) CCAQ took note of the working party's report on the meeting held in February 1978.

(23) At its 50th session (Part II) (February-March 1979: ACC/1979/R.2 (Part II), para. 19) CCAQ took note of the report of the working party on its meeting held in July 1978, and endorsed its intention to prepare a common response to the Joint Inspection Unit's Note on Health Insurance Schemes in the United Nations System (JIU/NOTE/77/2).

(24) At its 52nd session (January 1980: ACC/1980/4, para. 55) CCAQ agreed on the next steps which were required and divided the question into two: a common study of standards for compensation for service-incurred injury, illness or death, and the question of common funding.

(25) At its 55th session (July 1981: ACC/1981/31, paras. 124-126) CCAQ agreed that the working party should continue its work, concentrating on the elaboration of compensation rules, and that these might best be developed by means of a drafting group.

(26) At its 56th session (March 1982: ACC/1982/5, paras. 91-93) CCAQ took note of the draft set of rules which had been elaborated by the drafting group. CCAQ was not in a position to adopt them as presented; it agreed that a final attempt be made to reconcile the views of the organizations by the 57th session.

(27) At its 57th session (July 1982: ACC/1982/23, para. 115) CCAQ noted the report of the drafting group and recommended the common rules elaborated by it for adoption by each organization.

(28) At its 9th session (April 2005: CEB/2005/3, paras. 77-78) the attention of HLCM was drawn by UNDP to the fact that a revision of appendix D to the Staff Rules of the United Nations, governing compensation in the event of death, injury or illness attributable to the performance of official duties, had not been undertaken since 1966. UNDP therefore requested that the matter be referred to the HR Network for consideration. The Committee, while noting that appendix D applied only to the United Nations and its funds and programmes, decided to refer the issue to the HR Network in order to determine the proper manner of dealing with the issue.