THIS MESSAGE IS ONLY FOR FAO AND WFP MEMBERS.

FFOA members who are retirees from the Rome Based Agencies have recently (27/2) received an email from the FAO Director of Human Resources, Mr. Fernando Servan, informing them that retroactive deductions for their undercharged After Service Medical Coverage medical premiums from their UNJSPF pensions will start as of March 2019. This has caused some confusion and concern among members and this FLASH Bulletin will attempt to clarify matters:

In Feb 2018 FFOA Flash 16 informed members that there was to be an increase in BMIP premiums for all RBA staff and retirees following the contract extension with ALLIANZ for 2018 and 2019. FAO issued an Admin Memorandum (2018/01) for FAO staff and retirees. IFAD and WFP informed their staff and retirees by letter of the increase in premiums payable as of 1 January 2018 until Dec 2019. It is to be noted that Premiums have not been increased above those already announced to members in 2018. Underpaid premiums will now be collected.
1.    WFP and IFAD staff and retirees face increases of some 4.5% in their premium and were informed of the new flat rate premium according to family size. Retiree contributions are capped at 4 per cent of full pension.
2.    FAO retirees who have their premiums calculated as a percentage of full pension were informed in the Admin Circular (2018/1) that the % deductions would be increased e.g. from 1.5% for a single participant to 1.81%. and from 3 % to 3.62% for 2 participants. FAO retiree premiums are capped at 4% of full pension.
3.    Due to technical reasons, FAO could not calculate the premium increases for each participant family and inform the UN Pension Fund to make After Service Medical Coverage premium deductions from Pension payments therefore NO increased premiums were collected from JAN 2018 to date and only the former (2016) premiums were deducted from Pension payments. This has now been rectified and FAO informed all RBA participants in its email of 27 Feb 2019 that the agreed 2018-19 premiums can now be calculated and will be implemented as of March 2019. Under payment of premiums ( Jan 18- Feb 19) will start to be deducted from pensions as of May 2019.
4.    In the case of WFP retirees, the monthly increase in premiums (4.5%) to be collected retroactively for 15 months will be spread out in 8 equal installments from May to December 2019. In the rare event that the increased premiums and retroactive deductions exceed 10% of the monthly pension then members can request an extended recovery period.
5.    In the case of FAO retirees who faced a higher increase in premiums in 2018 than WFP and whose premiums are calculated as a % of full pension, the retroactive deductions and the premium increase will be more significant; deductions from pensions to cover previous under-payment of premiums will be spread equally over 8 months from May to Dec 2019. If the total monthly deduction exceeds 10% of the monthly pension, then extended repayment arrangements can be made with FAO.
6.    For members who retired in 2018 and have had no deductions at all for After Service Medical Coverage from their pensions up to now, this can now be rectified with pension deductions starting in March 2019. With regard to payment of ASMC premiums that were not charged for the period from retirement to March 2019, if monthly repayments are considered excessive in terms of % of monthly pension, an alternative repayment schedule should be discussed with FAO.
The FFOA can assist members who have additional queries. Ms. Akiko Ikeda is the Chief, Social Security (FAO) and her staff in Room D 339 can be approached regarding specific concerns of members especially in regard to modifying the repayment schedule if needed.




########################################################################

To unsubscribe from the FFOA1ItaITALY-L list, click the following link:
https://listserv.fao.org/scripts/wa-fao.exe?SUBED1=FFOA1ItaITALY-L&A=1