Page 66 - Bulletin, Vol.83 No.2, September 2024

What can we do about it?

The Council will observe that if the double track system is not questioned in its
essence as decided by the Board; however, the way it is currently managed may
jeopardise its future existence through the acceleration of multiple suspensions initiated
by the Fund’s Secretariat in various countries. The option for the double track
system is granted to retirees to protect their purchasing power against exchange
rates fluctuations; Therefore for the Retirees it is an acquired right and an asset that
cannot be called into question, otherwise it will cause them financial harm.

The Council will note that The Fund’s Regulations / Rules stipulate that once the option
for the double track has been made, it is no longer possible to change it and request
adhesion in the dollar track. Consequently the Retiree must remain affiliated

to the double track system he has previously chosen.

We observe however that this acquired right is denied to the Retiree through the
suspension decided outside his will, in contradiction with his initial choice and for
reasons beyond his control such as the lack of statistics his country of residence.

In that case, the Secretariat has the authority to use the suspension of the dual-track.

Moreover, while a suspension by definition should imply a potential return to the
double track if the country conditions that led to the suspension are eventually
reversed, no process was established for such a return to the dual-track.

The two-track system provide security for its beneficiaries, as exchange rates evolution
is not unknown. This actual erosion of the system could lead to fears of a de facto
abolition of this option, and enable the Secretariat to present itself to the Pension Board
by demonstrating that the small number of colleagues using the benefit would render it
obsolete, and could therefore ask for it to be abolished.

AAFI-AFICS and our FAFICS colleagues on the UNJSPB must remain vigilant on this
issue.

The Council therefore is invited to instruct its delegation to bring the issue before the
Board with the objective to

- maintain the integrity of the double track system

- respect and preserve the choice made by the retirees

- continue to safeguard their purchasing power and their acquired rights in this respect.

- Complete the procedure (pending since 2016, Annex document of the Standing
Committee on pension 2016) for stopping the suspension and permitting the return to
the double-track when the situation of the involved country is again in conformity with
this system.

64 AAFI-AFICS BULLETIN, Vol. 83 No. 2, 2024-09

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