2018-UNAT-834, Fox
UNAT considered the appeal. UNAT noted that the relationship between a pension fund and its members and beneficiaries is determined principally by the Regulations of the Fund and that there is no other explicit contractual basis obliging the Fund to assume duties beyond those expressly provided for in the Regulations and Administrative Rules. However, UNAT emphasized the importance of contracts being executed in good faith. UNAT found that the Fund breached its duty of good faith because the correspondence between the Appellant and the Fund indicated that she needed assistance and further information before making her choice of benefit on separation, and the Fund was delayed in replying and failed to provide coherent information. UNAT upheld the appeal to a limited extent and held that, if the Appellant so wishes, the Fund shall afford the Appellant the opportunity to elect a deferred retirement benefit in terms of Article 30 of UNJSPF Regulations with effect from the date of her separation.
UNJSPF decision: The individual appealed UNSPC’s decision to deny her request to be reimbursed the pension contributions she paid on behalf of UNRWA during the two-year period of Special Leave Without Pay. The Committee upheld the decision, citing the Regulations of the United Nations Joint Staff Pension Fund.
A necessary and suitably tailored pension fund rule should not place an excessive or harsh burden on individual participants that is disproportionate in relation to the collective interest. The principle of good faith and the concomitant duty of care demand due consideration of the interests of individual participants to avoid causing them disproportionate harm or prejudice.