Page 50 - 2023-11-13;Bulletin, Vol.82 No.2, October 2023

Appendix 2

Speech by Mohammed Sebti
AAFI-AFICS AGM 8 June 2023
PENSIONS

1. For pensioners, the issue of pensions is of particular importance. Having paid
contributions throughout their career, their legitimate expectation is to be assured of:

- on the one hand, that they receive their pension benefits regularly, on time, and at a
price that reflects the cost of living; and

- and secondly, that the Pension Fund is in good financial health to guarantee
payments in the long term.

As we all know, in recent years, and particularly since 2020, there have been many
upheavals on a global scale that have had an impact on our lives and behaviour. Covid,
war not far from home, banking crises and bankruptcies - all these major events have
shaken our confidence in all forms of political, economic and financial governance.

However, as the stock market is volatile, it has also experienced favourable movements
and rises, which have helped to allay any fears in the long term about the financial
health of the Fund and any negative repercussions on our benefits.

That being said, the financial health of a Caisse such as ours is not judged by short-
term fluctuations, but by its long-term viability, and to date we must be satisfied that the
Caisse is in a very good financial position, that it is in a position to meet all its
obligations, and that the capital/bond ratio is in positive territory. At 31.12. 22 Capital
was $82 billion. Over the long term, the Fund continues to generate a net return of
3.5%, which is the rate required to ensure the Fund's sustainability.

In terms of the valuation of pension benefits, galloping inflation almost everywhere in
the world has led to significant increases in NY, in Europe and particularly in
Switzerland, where for the first time in some 15 years, an increase of 4.4% has been
authorised, breaking with a situation that had stood still for almost 15 years.

We also note that payments are made very regularly, without a hitch, and files drawn up
for new pensioners are settled within 15 working days.

2. Measures adopted by the GM to improve management and services

Part truncated at the meeting due to lack of time.

2.1 With effect from 1 January 2023, the General Assembly of the United Nations
has approved an amendment to Article 1 of the Regulations of the Fund and a new
provision, Article 24 bis. which allows the reinstatement of prior contributory service at
no cost to the Fund in the case of members who have previously elected, or are
deemed to have elected, a deferred retirement benefit (option under Article 30) which is
not yet in payment.

AAFI-AFICS BULLETIN, Vol. 82 No.2, 2023-10 48

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