Is the GA considering a "defined contribution" and "two-tiered" benefits scheme for the UN Pension Fund? : Shared by Sharif Alam and Niloufar Pourzand

UN Pension Fund Study Request

Linked-in

January 6, 2025 

Click here for Ian Richards column on Linked-in

Summary

Ian Richards, a member of the UN Joint Staff Pension Board, reports that the UN General Assembly made an unexpected request during its 80th session in late December 2025.

The Assembly requested a "holistic review of the pension scheme, including alternative models," asking the pension fund board to assess alternative pension scheme designs including defined contribution and hybrid schemes, as well as adjustments to the existing defined benefit system, and report back in three years.

Richards explains the current UN pension operates as a defined benefit fund where retirement benefits are calculated based on final salary and years of service. The fund maintains a positive balance with standard contribution rates comparable to US civil servants.

He warns that shifting to defined contribution schemes (similar to 401k plans) would likely result in:

• Private bank management with higher fees
• Lower returns due to shorter investment horizons
• Creation of a two-tier hybrid system causing inequality and weakening the existing fund
• Tax complications for staff at different duty stations, as individual retirement savings would be subject to varying national tax regimes unlike current UN income protections

Richards questions the rationale for the study, asking: "if it ain't broke, why fix it?"

Related documents:

• UNJSPF announcement on 2026 budget approval (December 31, 2025) - confirms General Assembly "requested a holistic review of the pension scheme, including alternative models"
• US Mission closing statement, Fifth Committee 80th session (December 30, 2025) - states US "initiated a process to modernize the UN Joint Staff Pension Fund, a reform with the potential to reduce long-term costs dramatically"

Note: The General Assembly resolution from the 80th session (late December 2025) has not yet been published with a full document number. The resolution for the 2025 budget (A/RES/79/253, December 24, 2024) did not contain this pension scheme review language.