Mr. Chairman,

        I have the honour to speak on behalf of the Group of 77 and China on agenda item 128 pertaining to the administrative expenses of the United Nations Joint Staff Pension Fund.

2. The Group of 77 and China wishes to thank Ms. Valeria María González Posse, Chairperson of the United Nations Staff Pension Committee, Ms. Sharon Van Buerle, Director of the Programme Planning and Budget Division, and Mr. Rajat Saha, the Chairman of Advisory Committee on Administrative and Budgetary Questions, for introducing the reports that the Committee will consider under this item.

Mr. Chairman,

3. The Group of 77 and China attaches great importance to the work of the Joint staff Pension Fund which provides retirement, death, disability and related benefits for the staff of the United Nations and other organizations. This being the budget year the 5th Committee will be considering the budget related matters of the Fund. Consequently, the Report of the Joint Staff Joint Staff Pension Fund Board and other related reports primarily deal with the Fund's proposed budgetary estimates for 2008-2009 and the performance report for 2006-2007.

4. The Group of 77 and China welcomes the improvement in the quality of the budget document. The Group agrees with the proposed $ 150.9 million Fund budget as well as the proposed staffing level for 2008-2009. The Group believes that each sanctioned post entails specific assigned functions which are adversely affected in case it is not timely filled. Therefore, it is hoped that as the ACABQ was informed all 14 vacant posts in the Fund would be filled by the end of this year. The Group also shares the ACABQ observation that a well qualified and experienced person needs to be selected for the post of Director Investment Management Service given that he has to be entrusted with the management of a portfolio of over $40 billion.

5. Turing to the Performance Report of the Fund for 2006-2007, the revised estimate of $104.5 million for this period represents a reduction of $ 6.1 million as compared to the original estimates. The Group of 77 and China supports the approval of the revised estimates as proposed and welcomes the efficiency gains made by the Fund.  

Mr. Chairman,

6. In resolution 61/240 the General Assembly recognizing the adverse effects on the condition of the pensioners in countries having undergone dollarization, had invited the Board to present proposals to attenuate such adverse consequences. The same resolution had further asked the Board for a viable ad hoc measure to attenuate adverse consequences arising from dollarization in Ecuador, given the intensity of fluctuations experienced there. As a result the Board has come up with sound proposals to deal with the situation in Ecuador. The Group fully concurs with proposals of the Board in this regard and is of the view that their approval would be a just and timely settlement of this issue.

Mr. Chairman,

7. The Group of 77 and China is pleased to note that the market value of the assets of the Fund has gone up from $36.3 billion in December 2006 to $41.2 billion in October 2007.  In this regard, the Group would also like to highlight the importance of sound management and the diversification in the investments of the Fund especially in the developing counties. We hope future reports of the Secretary-General would include information on these aspects of the Fund including the comprehensive asset liability management study dilating upon financial risks and recommendations for asset allocation.

8. Group of 77 and China looks forward to constructive negotiations on this item.                

Thank you Mr. Chairman.