RESTRICTEDWORLD TRADE
ORGANIZATIONWT/GC/W/103
7 October 1998
(98-3892)
General Council
14 October 1998
CONDITIONS OF SERVICE APPLICABLE
TO THE STAFF OF THE WTO SECRETARIAT
Explanation, Rationale, Justification and Actuarial Certification
of the Proposed Compensation and Personnel Plan
Part A - Draft Staff Regulations
Part B - Draft Regulations of the WTO Pension Plan
Part C  - Steps in the procedure for the establishment of the
WTO Secretariat
Part D - Actuarial CertificationWT/GC/W/103
Page 2
PART A : DRAFT STAFF REGULATIONS
PURPOSE AND SCOPE
The conditions of service are aimed at securing staff members of the highest standards of competence,
integrity and efficiency to meet the requirements of the WTO.
DUTIES, OBLIGATIONS AND PRIVILEGES:
Regulations 1.1 to 1.3  set out principles of fairness, impartiality, equal opportunity,
non-discrimination, protection and safety, immunity from legal process, personal privacy andconfidentiality of personal information, which should govern the approach of the WTO and its
members to Secretariat staff.
Regulations 1.4 to 1.12  plus Annex B describe the obligations of Secretariat staff, including
commitment to the WTO, impartiality and independe nce from external influence, discretion, and the
disclosure of personal interest.  They deal with privileges and immunities, and respect for the law, and
provide for a code of conduct.
The organizations following the common system ge nerally continue to refer to the standards of
conduct established by the International Civil Service Advisory Board in 1954.  Although thesestandards, which have not been incorporated in the Staff Regulations of the organizations, have stood
the test of time rather well, they are in some respects outmoded.  The WTO standards, which will
form an integral part of the WTO Staff Regulations and are thus contractually binding on the staff of
the Organization, are intended to reflect modern principles and incorporate a number of new sections
concerning notably harassment and staff participation in the dispute settlement process.
STAFF ASSOCIATION, REPRESENTATION AND CONSULTATION
Regulations 2.1 to 2.5  recognise the right to freedom of association, an elected representative Staff
Council and the need for joint advisory bodies with equal representation from staff and management.The importance of regular management/staff contact and communication on personnel policies,
conditions of work and welfare is underlined.
RECRUITMENT POLICY
Regulations 3.1 to 3.5  stress the need to attract and retain staff with the highest standards of
efficiency, competence and integrity.  Equal opportunity in terms of gender, nationality, race and
religion is emphasised with the aim of ensuring the broadest possible diversification of the Secretariat.
Competitive recruitment is endorsed, and internal promotion on merit.WT/GC/W/103
Page 3
CONTRACT POLICY
Regulations 4.1 to 4.5  set out a contract policy designed to strike a balance between continuity and
renewal.  They provide for fixed-term or “regular ” contracts.  Employment depends on the continued
need for the staff member’s post, the fulfilment of their duties and obligations, and continuous
satisfactory performance.  Fixed-term contracts may be extended, but their total term will notnormally exceed five years. All initial contracts are for a probationary fixed term of at least one year.
A fixed-term contract may lead to a “regular” contract which carries no expiry date, but it remains
subject to regular review in relation both to the need for the position and the staff member’s
performance.  Staff will normally be considered for a regular contract after completing five years
under a fixed-term contract.
PERFORMANCE EVALUATION
Regulations 5.1 to 5.3 provide for an objective, transparent and properly recorded annual evaluation
of individual staff performance in relation to assigned tasks, professional conduct and fulfilment of
agreed goals and objectives.  Similar procedures are to exist for the assessment of potential to assumeother responsibilities.
SALARIES, BENEFITS AND POST CLASSIFICATION
Regulations 6.1 to 6.10 plus Annex A cover the aims of compensation policy (to secure efficiency,
competence and integrity, and equal pay for work of equal value); the establishment of a salary scale
and the method for its adjustment; provision for the regular review of the scale and adjustment
mechanism; the ongoing classification of all posts to provide a basis for equitable remuneration;
performance and achievement related pay; compensation for dependency; and working hours andleave.
A “unified” net salary scale  in Swiss francs is established which is subject to annual adjustment
not exceeding the cost-of-living movement in Switzerland, but deliberately constrained by the extent
to which national civil service salaries in France, Germany, Japan, the United Kingdom and theUnited States take into account cost-of-living movements.
The unified scale replaces: (a) the present worldwide Professional salary scale expressed in US dollars
and converted into Swiss francs by means of the post adjustment system (intended to take into
account exchange rate variations and equalize purchasing power between New York and Geneva);
and (b) the local General Service scale expressed in Swiss francs and adjusted annually for cost-of-
living movements in Geneva.  The unified salary scale will eliminate problems arising from the
present overlap between Professional and General Service salaries and pensions and will simplifypayroll administration.
The proposed adjustment mechanism is intended to ma intain the value of the scale in real terms, but
only to the extent that the five reference countries maintain the purchasing power of their national
civil service salaries.  The cost of the present adjustment mechanisms is driven partly by exchangerate differences, partly by the difference in cost-of-living between New York and Geneva, partly by
differences in staff expenditure patterns in non-duty-station countries and partly by the movement of
the Geneva cost-of-living index.  The proposed mechanism is again intended to simplify payroll
administration and at the same time provide a met hod of control over the purchasing power of WTO
salaries which is directly related to the national practice in the five reference countries.WT/GC/W/103
Page 4
It is recognised that the salary indexation mechanism is one of the critical elements determining
present and future costs of the conditions of service package.  For this reason there is provision for a
five yearly review  of both the salary scale and the adjustment mechanism.
Staff Regulation 6.5 provides for the introduction of performance-related rewards, as part of the more
general performance management system.  The granting of such rewards will be determined in thelight of performance evaluation reports (Regulations 5.1 to 5.3).  Although the United Nations
General Assembly has recommended on more than one occasion the introduction of performance
recognition programmes, common system organizations generally do not provide for performance-
related rewards;  periodic salary increments are granted on a quasi-automatic basis, with little scope
for modulation according to performance.  Furtherm ore, the value of the periodic increment varies
significantly between the General Service and Professional categories.
Performance pay  will be introduced at the earliest possible date.  In the initial phase the existing
incremental salary scales will be transposed into a unified scale, subject to replacement by a fully
fledged performance pay system in the year 2000.  Th is allows sufficient time for the development, in
consultation with staff, of a soundly based evaluation and rating system.  The amount to be set aside
for performance pay is specified, subject to review by the General Council at the instigation of theDirector-General.
A unified system of lump-sum dependency allowances  is proposed, derived from the existing
General Service system of allowances.  Where former Professional staff would have been eligible for
a higher amount of allowance, that  amount will be frozen until overtaken by the new allowance as a
result of indexation.  This will bring payroll simplification and eliminate inequalities inherent in the
present system where the value of the primary or secondary dependent allowance varies according to
the staff member's category.
CAREER DEVELOPMENT
Regulation 7.1  promotes a career development approach which at the same time takes into account
both contract policy and the most effective allocation of human resources for the organization.
SOCIAL SECURITY
Regulations 8.1 and 8.2  refer to the associated WTO Pension Plan (outlined in the accompanying
Pension Regulations); to a medical expenses scheme relating to illness, accident or death; and to
maternity or parental leave.
TRAVEL AND REMOVAL EXPENSES
Regulations 9.1 and 9.2  cover the payment of travel expenses and removal costs.WT/GC/W/103
Page 5
SEPARATION FROM SERVICE
Regulations 10.1 to 10.9  define the various forms of “separation from service”; specify the normal
maximum age as 62 years; list grounds on which the Director-General may terminate a staff
member’s service; and set out the circumstances in which a “termination indemnity” may be provided
to such staff.  Also provided for is the paymen t of a “separation grant” in defined cases which is
designed to recognise relocation costs and service with the organisation.  Both the termination
indemnity and the separation grant are salary-related.
Terminations will be accompanied by payment of a  termination indemnity  if they flow from the
elimination of a post (and inability to redeploy), or from incapacity, or from an assessment of the
needs of the organisation.  In the event of termin ation related to the needs of the organisation, the
payment may in exceptional cases be increased by up to 50 percent.  Where the termination derivesfrom an officer falling short of the minimum standards required, and exceptional hardship is involved,
a termination payment no greater than 50 percent of that relating to the abolition of a post or to
incapacity may be paid.
The payments involved will be based on a uniform system of termination indemnities replacing the
existing system which yields anomalous results (because the existing scale for the General Service
category is based on total net salary whereas the Professional scale is based only on a part of it).  The
new scale is a function of total net salary for all grades.
The separation grant  has two elements.  It may be paid to internationally recruited staff members
who provide proof of relocation  outside Switzerland, unless they are separating from the organisation
as a result of unsatisfactory performance or conduct, summary dismissal for misconduct, or of
abandoning their post.  This element of the grant recognises a range of often intangible relocation
costs such as the loss of professional and business contacts in the country of origin; the need to give
up residence and liquidate obligations in Geneva; and the expenses associated with re-establishmentin the country of relocation.  The provision of co mpensation for such expenses (which parallels the
payment of an installation grant on recruitment) is an important factor in international recruitment and
hence in ensuring the broadest possible diversification of the Secretariat.
The other element of the separation grant relates to length of service  and applies to non-internationally
recruited staff if they have completed a minimum of 10 years with the organisation.  In this case the
grant is 50 percent of that payable in the case of international staff who relocate outside Switzerland.
The introduction of a unified salary scale and the reduction in the amount of the grant payable to
internationally recruited support staff will ensure that the separation grant yields consistent amounts
for all grades, unlike the repatriation grant which results in larger payments to General Service staff
than to Professional staff.
DISCIPLINARY MEASURES
Regulations 11.1 to 11.4  describe the nature of appropriate disciplinary measures and accompanying
procedures.
GRIEVANCES AND APPEALS
Regulations 12.1 to 12.5  outline procedures for the resolution of staff grievances and complaints
relating to conditions of employment.WT/GC/W/103
Page 6
AMENDMENTS
Regulations 13.1 and 13.2  provide for amendment of the Staff Regulations by the General Council
and amendment of the Staff Rules by the Director-General (without prejudice to staff members' rights
acquired under the WTO Staff Regulations and Rules).   In the case of the Staff Rules, the GeneralCouncil is to be informed of amendments, and any with financial implications or which create new
rights must be approved by the General Coun cil unless they flow from approved automatic
mechanisms.
TRANSITIONAL PROVISIONS
Regulation 14.1  recognises prior service under an ICITO/GATT contract as counting fully as service
under a WTO contract.WT/GC/W/103
Page 7
PART B : DRAFT PENSION REGULATIONS
PURPOSE AND DEFINITIONS
Articles 1 to 3  explain the purpose of the WTO Pension Plan (to provide retirement, death, disability
and related benefits for participating staff), contain key definitions, and require that a Management
Board give effect to the Plan.
MANAGEMENT OF THE PLAN
Articles 4 to  8 establish the management arrangements and responsibilities for the Pension Plan.
The Management Board  has nine members:
Chairman  is elected by the General Council.
Four  other members of the Board (and alternates) are elected by the General Council.
Four  further members (and alternates) are appointed by the Director-General - of these four
(and alternates) two are decided by the Director-General, and the other two are drawn by the
Director-General from a list compiled by the staff participants in the Plan.
In addition, an observer  is designated by the pension beneficiaries.
The Management Board is responsible for management and administration  of the Plan, and
particularly for ensuring it remains in actuarial ba lance.  The Board must report annually to the
General Council and to the participants on the state of the Plan.The Management Board is assisted by a Secretary  who is responsible for implementation of the
Pension Plan at the Board’s direction, and by a Consulting Actuary .  The Board itself decides on
tables to be applied under the Plan (relating, for example, to service and mortality) and on rates of
interest to be used for periodic actuarial valuati ons which look at scenarios relating to the possible
future evolution of the Plan.  At least every three years the actuarial bases of the Plan must bereviewed.
The rate of interest  to be used in all calculations relating to the Pension Regulations (for example, in
calculating payments of contributions in arrears) is stipulated in Article 8(c).
CORRECTIVE FINANCIAL ACTION
Article 9  puts in place procedures for regular review by the Management Board of the financial
viability of the Pension Plan.  In the unexpected event of an actuarial deficit or surplus, the Board
must recommend corrective action to the General Council.  This is an important long term risk
management provision.
The Board must have an actuarial valuation  of the Plan produced at least once every three years.  In
the light of the Consulting Actuary’s valuation repo rts, the Board has to provide the General Council
with a best estimate of the implications of ex isting pension contribution levels for the funding of
pension benefits, and of the implications of maintaining existing benefits for the future funding ofcontributions.WT/GC/W/103
Page 8
Remedial action  recommended by the Board to the General Council - in the event of actuarial
information indicating a deficit or surplus - may incl ude an adjustment to contributions or to pension
benefits, a combination of the two, or any othe r measure the Board deems appropriate to restore
actuarial balance.
In short, in the unlikely event that the Pension Pl an (which in normal circumstances provides for pre-
defined benefits) runs into serious financial difficulty, it is not excluded that benefits or contributions
can be set at a new levels to achieve financial viability.  If by a decision of the General Council
changes were made to benefit levels, these benefit level changes would not apply to those already
drawing pension benefits under the Plan, or to the pension rights of existing serving staff arising from
their contributory service under the Plan before the change.  But any change would apply to all rights
acquired by existing or future staff from the date of the change (this is covered in Article 44(b)).
This means that, while WTO members can potentially address a serious financial problem not only by
increasing contributions but also by adjusting benefits, the previously acquired pension rights of past
or present staff will be respected.
TRANSFER OF PENSION RIGHTS
Article 10  allows for continuity of pension rights of individuals transferring to the WTO Pension Plan
from a pension plan in another organisation, or vice versa.
PLAN ASSETS AND INVESTMENTS
Articles 11 and 12 describe the sources of assets  for the Pension Plan (mainly the contributions of
WTO members and staff participants, and the yield from Plan investments), and the requirement thatthese assets be held separately from other WTO assets and be used only for the beneficiaries of the
Plan.
Articles 12 and 13  also deal with the basis on which the Management Board must approach investing
the funds  of the Pension Plan, including the kind of investments and instruments to be used.  The
Board’s investment policy must be based on professional advice and be implemented by investment
managers.  Detailed accounts must be maintained of all Plan transactions.  The manner in which the
Management Board secures professional advice is a matter for the Board to determine.
CURRENCY
Article 15  specifies that the Plan is Swiss franc  based.  A beneficiary who chooses to be paid in
another currency must carry the foreign exchange risk.  So as to keep administrative costs down,
beneficiaries cannot change the currency their benefit is received in more than once every six months.
PARTICIPATION
Articles 16 to 19  open participation in the Plan generally to WTO staff with at least six months
service; provide for resumption of participation in the Plan within twelve months of leaving the WTO
if no benefits have been received; define contributory service; set out conditions for the validation ofnon-contributory service; and cover the restoration of prior contributory service.WT/GC/W/103
Page 9
Under the common system provisions, participants may restore a maximum of five years of prior
contributory service.  This limit was introduced as part of the package of austerity measures to reduce
the actuarial deficit of the Fund.  It is proposed to remove this arbitrary limit and allow restoration
only of the total period of prior contributory service.
PENSIONABLE REMUNERATION
Article 20 and Annex 1 define pensionable remuneration which is the basis for calculating
contributions to the Plan (under Article 21) and the benefits payable by the Plan (under Articles 23 to
32).
“Pensionable remuneration” is the gross (tax inclusive) equivalent of the net salary of staff, based on
Swiss taxes.  Net salary alone cannot be used because pensions, unlike WTO salaries, are subject to
tax.
Under the common system provisions, pensionable remuneration is determined by the application of
internal taxation rates to a proportion of net salary and is expressed in U.S. dollars.  Different taxationrates and different proportions of net salary apply to General Service staff and Professional staff, with
the result that lower net salaries may result in higher levels of pensionable remuneration and, hence,
higher pensions.  It is proposed to introduce a uni fied scale of pensionable remuneration, based on the
unified net salary scale (Staff Regulations 6.2 and 6.3).  Internal taxation rates would be derived from
Swiss tax rates and applied to the same proportion of  net salary, with the re sult that the relationship
between pensionable remuneration and net remuneration would be consistent across the scale.
Pensionable remuneration levels would decrease in grades 1-7 and increase in grades 8 and above.
CONTRIBUTIONS TO THE PLAN
Article 21  sets the monthly staff contribution rate to the Plan as a percentage  of their pensionable
remuneration.  It also provides for the WTO to pay a contribution equal to twice that of the
participant.
The “contribution rate” or percentage is actuarially defined.  It is the rate necessary on a long term
basis to provide the benefits specified in the Plan, taking into account a series of economic and
demographic assumptions (such as inflation, investment returns, mortality, disability).
GUARANTEE OF BENEFITS
Article 22  guarantees the payment of beneficiaries from the Plan in the event that the WTO were to
be wound up.  The guarantee is limited to coverage of rights acquired by the participants and
beneficiaries up until the date of dissolution.
The common system arrangements include no provision to guarantee the continuing payment of
benefits in the event of dissolution.  Given that the WTO Pension Plan would be the sole source of
social security (protection against the consequences of old age, disability and death), it is essential that
the Plan include a provision to protect the beneficiaries in the event that the WTO is wound up.WT/GC/W/103
Page 10
BENEFITS
Articles 23 to 32 describe the various benefits , and conditions associated with them, provided for
under the Pension Plan including: a retirement benefit; an early retirement benefit; a deferred
retirement benefit; a withdrawal settlement; a total or partial disability benefit; a surviving spouses’
benefit; a child’s benefit; and a secondary dependent’s benefit. Also covered is the deferment ofpayment or of the choice of a benefit.
To a considerable extent the benefits provided for mirror existing benefits available to staff.  However
there are differences in relation to the retirement, early retirement, withdrawal settlement, and
surviving spouses benefits.
The retirement benefit (Article 24)  is payable at a standard annual rate of 2 percent of final average
remuneration per year for the first 30 years of service and 1 per cent thereafter, up to a maximum of
70 percent of this average remuneration.
The common system arrangements provide for different benefit accumulation rates, depending on the
date at which the participant commenced contri butory service.  In all cases, the maximum
accumulation rate is 70 per cent, attained after 38.75 or 40 years of service, depending on the date of
entry.  However, staff entering the Fund on or after 1 January 1983 accumulate benefits at a
significantly slower rate (16.25 per cent) over the first 10 years of service than staff joining before
that date (20 per cent).  It is proposed to return to the
pre-1983 accumulation rate.
The early retirement benefit (Article 25)  is payable at the standard annual rate of 2 percent for a
retirement benefit but adjusted downwards by one of two reduction factors.  (Under existing
arrangements the maximum reduction factor ranges from 5 per cent to 30 per cent depending on the
length of contributory service).  An improved reduction factor in the WTO Plan of 3 percent for allstaff, combined with a factor of 1 percent for thos e with more than 30 years service, provides an early
retirement incentive consistent with promoting renewal and salary savings in the Organisation.
The withdrawal settlement (Article 27)  is payable where the age on separation is less than the
normal retirement age, or in a situation where the participant has reached normal retirement age but isnot entitled to a retirement benefit.  It consists of 10 per cent of final average remuneration for each of
the first 20 years of service.  This contrasts with the existing system which provides for either the
return of the staff member's own contributions plus interest at 3.25 percent per annum if contributory
service was less than 5 years, or the return of the staff member's own contributions increased by
10 percent for each year of contributory service in excess of 5 years up to a maximum of 100 per cent.
This penalises staff who separate with less than 5 years of contributory service and recover none of
the contributions paid on their behalf by the organisation.
The disability benefit (Article 29)  provides for the granting of a benefit either in respect of total
disability (where the staff member is fully incapacitated for further service) or in respect of a partial
disability (where the staff member may be reassigned to duties at a lower grade).  The existing system
provides only for total disability.  By providing for partial disability, the proposed system willintroduce an element of flexibility which will offer improved disability coverage on a cost-neutral
basis.
The surviving spouse’s benefit (Article 30)  is set at 60 percent of the relevant benefit in line with
prevailing social security practice in Switzerland. Existing arrangements provide for a survivingspouse to receive 50 percent, which may correspond to less than 25 percent of the deceased staff
member’s final net salary.  The change is based on the fact that generally the WTO Plan will be the
only source of social security for staff members and their families.WT/GC/W/103
Page 11
COST OF LIVING ADJUSTMENT
Article 33  describes mechanisms for the cost-of-living adjustment of pension benefits to ensure
maintenance of the purchasing power of benefits  in the currency in which they are paid.   This
article applies to all retirement and survivor benefits, including deferred benefits.
Benefits paid in Swiss francs  are adjusted annually according to the movement of the Swiss consumer
price index.  Where a beneficiary selects a currency other than the Swiss franc, the benefit is similarly
adjusted in line with the Swiss CPI.
If a beneficiary submits proof of residence in a country other than Switzerland they can receive the
benefit in their local currency .  This is calculated by applying to the Swiss franc benefit the average
(calculated over the 36 calendar months up to the time separation) of the exchange rates between the
Swiss franc and the currency of the country of residence.  This local currency amount of the benefit is
subsequently adjusted annually in line with the movement of the official CPI for the country
concerned.
In a situation where the cost of living  in a beneficiary’s country of residence is more than 10 percent
higher or lower than that in Switzerland , an initial cost-of-living differential factor is applied to the
local currency amount of the benefit.
The UNJSPF provides for the so-called two-track system according to which, in summary, a
beneficiary providing proof of residence in a country other than the United States, will receive a
benefit which is the higher of (a) the US dollar benefit converted into the local currency at the
prevailing market rate, and (b) the local currency benefit established on the basis of the 36-month
average exchange rate at the date of separation, except that the amount payable under (a) is capped at110 per cent of the amount payable under (b).
The system proposed under draft Article 33, above, effectively reduces the cap to 100% and
eliminates the possibility for the beneficiary to take the higher of the two tracks, since in all cases only
the local currency track amount will be payable once the beneficiary has provided proof of residencein a third country. Barring exceptional circumstances, e.g. a return to Switzerland, once a beneficiary
chooses the local currency track, he/she may not switch back to the Swiss franc track.
RESIDUAL SETTLEMENT
Article 34  ensures that the survivors or estate of a deceased participant receive a residual settlement
representing undisbursed contributions paid in by the participant.
LEAVE WITHOUT PAY
Article 35 deals with the limitation of entitlements during leave without pay.
RE-ENTRY
Article 36  covers the situation where a former participant who is entitled to certain benefits re-enters
the Pension Plan.WT/GC/W/103
Page 12
MEDICAL EXAMINATION
Article 37  sets out the requirements for the medical examination of participants in the Pension Plan.
INFORMATION REQUIREMENTS
Article 38  stipulates information which may be required of Pension Plan participants and
beneficiaries.
RECOVERY OF INDEBTEDNESS TO THE PLAN
Article 39  allows for the deduction from a participant’s benefits of amounts owed to the Plan.
INTEREST ON UNPAID BENEFITS
Article 40  states the conditions under which the Pension Plan is liable to pay interest on unpaid
benefits.
NON-ASSIGNMENT OF RIGHTS
Article 41  prevents participants and beneficiaries assigning their rights to others under the Pension
Regulations.
FORFEITURE OF BENEFITS
Article 42  covers situations in which beneficiaries would forfeit their benefits.
ILO ADMINISTRATIVE TRIBUNAL
Article 43 describes the jurisdiction of the ILO Administrative Tribunal in relation to implementation
of the Pension Plan Regulations.
AMENDMENT AND ACQUIRED RIGHTS
Article 44 provides for the Management Board to recommend Pension Regulation amendments to the
General Council.  Amendments enter into force from the date specified by the General Council but
without prejudice to rights to benefits acquired by staff through contributory service prior to that date.Amended Regulations will apply to all rights acquired after the date of the amendment, including
those of serving staff.
ENTRY INTO FORCE
Article 45 allows the Pension Regulations to enter into force from a specified date.WT/GC/W/103
Page 13
TRANSITIONAL PROVISIONS
Article 46 covers arrangements for staff members transferring from the United Nations Joint Staff
Pension Fund to the WTO Pension Plan from its date of entry into force. They will be credited with
the equivalent actuarial value of the Swiss franc retirement benefit which they had accrued in the
UNJSPF, based on their contributory service and final average remuneration.  Their prior contributoryservice will be adjusted on the date of transfer to yield the same value of accrued benefit under the
WTO Pension Regulations as they had in the UNJSPF.
This takes into account the fact that in converting the value of the accrued benefit, particularly for
Professional staff, it is necessary to adjust the length of contributory service.  Unless this is done, the
value of the accrued benefit at the date of transfer would be overstated.
Where the scale of pensionable remuneration of staff members transferring from the UNJSPF to the
WTO Pension Plan would be lower than under the UNJSPF Regulations, the latter will continue to
apply until it is overtaken by the scale provided for under the WTO Pension Regulations.  This
protects the acquired right of those staff transferring to remain on a previous scale of pensionable
remuneration where that scale is higher than the proposed new scale (this is the case particularly forGeneral Service staff).
Where the early retirement reduction factors applicable to a staff member are more favourable under
the UNJSPF, these will continue to apply.WT/GC/W/103
Page 14
PART C : STEPS IN THE PROCEDURE FOR THE
ESTABLISHMENT OF THE WTO SECRETARIAT
If the draft Decision on Conditions of Service Applicable to the Staff of the WTO Secretariat
is approved by the General Council, the next st eps in the procedure would be as follows, in
chronological order:
- notification by the Director-General to the United Nations Joint Staff Pension Fund of the
intention of ICITO to apply for termination of its membership in the UNJSPF on31 December 1998;
- organization by the Staff Council of a referendum among the staff at large on the proposed
conditions of service;
- subject to the outcome of the referendum, holding of a special session of the United Nations
Joint Staff Pension Board and Committee of Actuaries to consider the ICITO application fortermination of membership, to define the method to be applied to determine the proportionateshare of assets to be returned to ICITO, and to make corresponding recommendations to theUnited Nations General Assembly,
- subject to the conclusion of satisfactory arrangements with the UNJSPF and to the recovery
of sufficient assets from the UNJSPF to permit the introduction of the proposed newconditions of service on a cost-neutral basis, establishment of the WTO Secretariat on 1
January 1999.
It is understood, and has been agreed with the UNJSPF, that the WTO may decide not to
proceed with withdrawal at any time up to and including January 1999.WT/GC/W/103
Page 15PART D:  ACTUARIAL CERTIFICATION OF WTO COMPENSATION AND PERSONNEL SCHEME
Pursuant to point 3. of Decision WT/L/269 adopted by the General Council and the ICITO Executive Committee on 24 April 1998,
the panel of independent actuaries hereby certifies
that1. the Working Group’s proposed compensation (salaries and all benefits) and personnel scheme, as described in documents WGCS(98 )1/Rev.6,
WGCS(98)2/Rev.9 and WGCS(98)3/Rev.3, will be cost neutral over a period of 7 years for the Organization;
2. the Working Group’s proposed independent WTO Pension Plan, as described in document WGCS(98)2/Rev.9, would be viable;
under the normal course of events and based on the assumptions included in the independent reports, and the further conditions that:
a)  as a minimum, the asset values shown below, as of 1 January 1999, will be transferred as initial assets of the WTO's Pensio n Plan, from the UNJSPF,
under the following scenarios:WT/GC/W/103
Page 16 1.  SCENARIO Main benefit features of the
WTO Pension Plan(i) Minimum value of transfer assets
as of 1 January 1999
1 - Accumulation rate of 2% for 30 years and 1%
thereafter
- Early retirement factor of 3% per year beforenormal retirement date (i.e. no "rule of 85")
- Surviving spouse pension of 60%
- Pensionable remuneration based on 70%
grossing-upCHF 158 million*
2 Same as 1 above, except for:
- pensionable remuneration based on 65%
grossing-upCHF 149 million*
3 Same as 1 and 2 above, except for:
- surviving spouse pension of 50%CHF 137 million*
*Rounded down to the million
b) the investment of assets held under the proposed pension plan  yields, on average, over the long term, a minimum net real retu rn of 3.5% p.a. in CHF
terms.
For the panel of actuaries :
            [signed]                                                                                                                                                        [signed]
Denis Stainier Simon Desrochers
    William M. Mercer Towers Perrin
__________