UNWIND

TAX NEWS FOR UN RETIREES RESIDING IN CANADA

The following notice from John Northcut,  CAFICS Councilor (for taxation matters) was published in the AFICS Bulletin, New York , Vol 40, No.2 (page 11) of April 2009:

“The Canadian taxation authority (Canada Revenue Agency) has re-confirmed, based on recent discussions with the U.S. taxation authority (Internal Revenue Service), that under the terms of the Canada-U.S. Tax Treaty, a portion of UNJSPF payments to UN system retirees residing in Canada is no-taxable on Canadian tax returns.  Guidelines have been established for taxpayers residing in Canada to calculate the amount of the non-taxable portion based on the same formula used for UNJSPF recipients resident in the USA.

USA PRIVATE PENSIONS - WHAT CAN UN STAFF LEARN FROM IT?

USA Private Pensions – Lump-Sum Distributions Become Harder to Get writes Julian Mincer in the Wall Street Journal of May 20, 2009.

The option of a lump-sum on retirement is likely to disappear for a lot of workers this fall reports the Wall Street Journal.

Lump-sums were a common option for workers enrolled in pension plans.  However, it is now become rarer because of declining stock values that have sent pension assets plunging just as they have to meet stringent funding requirements.  Pensions themselves, of course, are being offered to fewer workers.

SVENSKA HANDELSBANKEN - YET WITHOUT BUDGETS

More Swedish lessons from the banking industry is of Sweden's Svenska Handelsbanken.

Svenska Handelsbanken staff made a presentation at a Beyond Budgeting Round Table (BBRT) meeting in Texas about a decade ago.  Handlesbanken was a model to BBRT as they had the experience of running their organization since 1972 without fixed budgets and without detailed budget planning.  Budgets which would normally take 10 months to complete were prepared in less than two weeks on the Handlesbanken model.  Svenska Handelsbanken was classified as one of the most profitable banks in Europe, and it is alarming to see that this bank has been profitable even in this worst economic downturn.  The bank’s core philosophy is a focus on customers, profitability at the level of each operating unit and long-term relationships, not short-term gains.

UN PENSION FUND - Expansion of Survivor benefits

I think there is a serious flaw in the survivor benefits of UNJSPF that discriminates against women who are spouses of UN staff.  The attached letter is a start in addressing the issue Download Unjspf Board pension marital status.  The letter was e-mailed to a UNICEF staff member and a UN staff member, also members of the UN Pension Board, for presentation to other board members.  I am corresponding with them asking for their support to present this case to the Pension Board.  Of course, we cannot expect quick action in dealing with the UN protocol, but at least we have started the process.