COUNCIL OF EUROPE
COMMITTEE OF MINISTERS

Resolution Res(2006)1
on the Statute of the Pension Reserve Fund of the Council of Europe

(Adopted by the Committee of Ministers on 1 February 2006
at the 954th meeting of the Ministers' Deputies)
1

The Committee of Ministers, under the terms of Article 16 of the Statute of the Council of Europe,

Considering the proposals of the Secretary General in document CM(2005)106;

Considering the opinion of the Budget Committee on those proposals in the report of its September 2005 meeting (CM(2005)147, paragraphs 57-67);

Adopts the revised Statute of the Council of Europe Pension Reserve Fund, which cancels and replaces Resolution Res(2002)53, as follows:

*

*   *

STATUTE OF THE PENSION RESERVE FUND OF THE COUNCIL OF EUROPE

Part I – Objective, Fund Assets and Financing

Article 1

Objective of the Fund

The objective of the Pension Reserve Fund (“the Fund”) is to smooth, in the medium and long term, the financing of the member states’ obligations under the Organisation’s Pension Schemes.2

Article 2

Assets of the Fund

1. All assets of the Fund are the property of the Organisation. They are managed and accounted for separately from all the other assets of the Organisation. The accounts of the Fund shall be consolidated in the annual financial statements of the Organisation.

2. The Fund’s assets may be used only to pay, via the pensions budget, benefits under the Pension Schemes and the authorised expenses of the Fund.

Article 3

Financing of the Fund

1. The Fund shall receive:

a) all staff members’ contributions, including validation payments, resulting from the relevant Pension Scheme Rules.

b) annual contributions from member States as determined by the Committee of Ministers on the basis of actuarial studies. The next study shall be carried out in 2013 and thereafter every four years and in addition whenever the Committee of Ministers deemed necessary;3

c) annual contributions from the budgets of the Partial Agreements, representing twice the rate of contributions by staff members affiliated to the old Pension Scheme and one and a half times the contributions of staff members affiliated to the new Pension Scheme;

d) income earned on the assets of the Fund; and

e) such other amounts as the Committee of Ministers may decide to allocate to the Fund.

2. The amount due from the member states under paragraph 1.b) of this Article shall be apportioned among them in accordance with a scale of contributions approved by the Committee of Ministers and calculated in conformity with the agreed principles and rules for determining scales of contributions to the budgets of the Organisation, unless the Committee of Ministers otherwise determines.

3. Member states’ contributions shall be paid in accordance with the Financial Regulations of the Organisation.

4. The competent Cost Centre Manager of the Organisation designated by the Secretary General shall determine the amounts to be released from the Fund to the Treasurer of the Organisation, and to be credited to the Pensions Budget for payment of pension benefit obligations.

5. The expenses of the Fund include the cost to the Organisation of the Fund’s administration, in particular the costs of the custodian bank(s), external financial advisors and the designated Fund Secretariat.

6. On the Management Board’s proposal, the Committee of Ministers shall decide on any adjustment required in member states’ contributions to ensure the long-term viability of the Fund.

Part II – Fund Management and Governance

Article 4

General Principles

1. The Fund shall be managed by a Management Board composed of members nominated by the Committee of Ministers on the proposal of member states, the Secretary General and the Staff Committee.

2. The basic mission of the Management Board, which operates subject to control of the Committee of Ministers, is to propose to the Committee of Ministers for approval the general policies, goals and guidelines for investment of the assets of the Fund, to give external service providers the mandates necessary for the management of the Fund, and to assure that the policies approved by the Committee of Ministers are respected. The Management Board may deviate temporarily from the strategic asset allocation in periods of exceptional circumstances, such as the implementation of a new investment strategy or the occurrence of extreme uncertainty in financial markets. The Board should decide when special circumstances apply and shall seek to obtain the approval of the Committee of Ministers immediately.4

3. The operating budget of the Fund shall be approved by the Committee of Ministers.

4. The Fund shall be administered and audited in accordance with the Financial Regulations of the Organisation.

5. The Management Board shall have no responsibility for the operation of the Pension Scheme and the payment of benefits to individuals other than the release of funds as required under Article 3, paragraph 4.

6. The Management Board shall be assisted by a Fund Secretariat designated by the Secretary General on the recommendation of the Management Board.

7. The Management Board shall report at least twice annually to the Committee of Ministers on the status of the Fund.

Article 5

Composition of the Management Board

1. The Management Board shall be composed of the following members:

a) four specialists with expertise in the management of investment funds nominated by the Committee of Ministers on the proposal of member states;

b) one person nominated by the Committee of Ministers on the proposal of the Secretary General; and

c) one person nominated by the Committee of Ministers on the proposal of the Staff Committee.

2. The members of the Management Board shall be appointed for a term of three years and may be renewed. They may be removed by the Committee of Ministers at any time.

The term of appointment shall be set with a view to having no more than two appointments in the same year.

Consequently, the initial terms of appointment of four of the six first members shall exceptionally be set as follows:

    - two members will be appointed for a term of four years;

    - two members will be appointed for a term of five years.

The term of appointment of the first six members will be decided by lottery. All subsequent terms of appointment shall be for three years.

3. The members of the Management Board shall receive no remuneration.

4. The Management Board shall select its Chair and Vice-Chair from among its members nominated on the proposal of member states. The Chair shall be approved by the Committee of Ministers. The Chair shall be nominated for three years, renewable once.

5. Management Board members who fail to participate in three consecutive meetings or written procedures, without proper justifications, shall be replaced by the Committee of Ministers.5

Article 6

Functions of the Management Board

1. Subject to any decisions of the Committee of Ministers, the Management Board shall:

a) submit to the Committee of Ministers, for approval, a code of conduct;

b) submit to the Committee of Ministers, for approval, proposals for the general policies, goals and guidelines for investment of the assets of the Fund;

c) select, in accordance with the Financial Regulations of the Organisation, the external service providers necessary for the management of the Fund (e.g. investment advisers, investment managers, actuaries and custodian banks) after a thorough comparative analysis of at least three offers presented by the most qualified operators;

d) review the operations of the Fund and verify their conformity with the policies, goals, and guidelines approved by the Committee of Ministers;

e) as necessary, bring to the attention of the Committee of Ministers any issue concerning the operation of the Fund;

f) approve, on the proposal of the Fund Secretariat, the Fund’s operating budget and annual financial statements and submit them to the Committee of Ministers for final approval; and

g) carry out other tasks as assigned by the Committee of Ministers.

2. The Management Board shall report at least twice annually to the Committee of Ministers on the status of the Fund. Every three years, the Management Board shall carry out a thorough review of the Fund’s investment policies, goals, guidelines and performance, its actuarial assumptions, rate of contribution and its capitalisation target and report its findings, decisions and recommendations to the Committee of Ministers.

3. Permanent Representations shall receive a copy of the convocations and agendas of the meetings of the Management Board.

Article 7

Meetings and Decisions of the Management Board

1. The Management Board shall establish its governing rules of procedure.

2. The Management Board shall meet as needed to carry out its functions but no less than quarterly, or at the request of its Chair or the majority of its members. A meeting is valid if at least four members are present.

3. Decisions shall be taken by a majority of the Management Board members, with the Chair or, in his or her absence, the Vice-Chair having the casting vote.

4. Should the attendance of members of the Management Board at meetings require travel from their normal place of work, their travel and subsistence expenses shall be reimbursed as follows:

a) members nominated on the proposal of member states: in accordance with the Rules for the Reimbursement of Travel and Subsistence Expenses of government experts;

b) staff members: in accordance with the Rules governing the reimbursement of the travel and subsistence of staff members on official journey.

Article 8

Fund Secretariat

1. The Fund Secretariat shall be appointed by the Secretary General, based on recommendation by the Management Board.

2. The Secretary General may, with the approval of the Management Board, entrust the role of Fund Secretariat to an entity outside the Organisation.

3. The Fund Secretariat shall assist the Management Board in the daily management of the Fund; its functions shall include, in particular:

a) organising the meetings of the Management Board;

b) organising the selection of external service providers and monitoring the contracts;

c) preparation of the operational budget and quarterly financial statements of the Fund.

4. Should the duties of members of the Fund Secretariat require travel from their normal place of work, their travel and subsistence expenses shall be reimbursed in accordance with the rules governing the reimbursement of the travel and subsistence of staff members on official journey.

Article 9

Privileges and Immunities

Being constituted of assets of the Council of Europe, the Fund shall benefit from the dispositions of the General Agreement on Privileges and Immunities.


1 As amended by Resolution CM/Res(2008)50 on 25 November 2008 at the 1042nd meeting of the Ministers' Deputies, by decision CM/Del/Dec(2011)1105/11.1abd on 9 February 2011 at the 1105th meeting and by Resolution CM/Res(2012)12 on 24 October 2012 at the 1153rd meeting

2 As amended by decision CM/Del/Dec(2011)1105/11.1abd

3 As amended by Resolution CM/Res(2012)12

4 As amended by decision CM/Del/Dec(2011)1105/11.1abd

5 As amended by Resolution CM/Res(2008)50



 Top

 

  Related Documents
 
   Meetings
 
   Other documents