UNAT Held or UNDT Pronouncements
The UNAT held that the UNRWA Dispute Tribunal did not err in concluding that the former staff member’s claim regarding the calculation of Provident Fund benefits was unfounded because the Agency correctly applied the governing legal framework. The UNAT found that, under Area Staff Rule 106.1(16)(D)(ii), the last published special interest rate applies up to and including the month immediately preceding payment. Since the payment was made in August 2022, the Agency properly applied PF Secretariat Circular PFS/08/2022, which declared a negative special interest rate of -15.18% for January–June 2022 and annualized it to -17.71% in accordance with Finance Technical Instruction No. 9.
The UNAT further found that the UNRWA DT did not err in determining that the Agency’s calculation method, annualizing the special interest rate and applying it to the average balance, was permissible under paragraph 15(ii) of Finance Technical Instruction No. 9.
Therefore, the UNAT dismissed the appeal and affirmed Judgment No. UNRWA/DT/2024/038/Corr.01.
Decision Contested or Judgment/Order Appealed
A former staff member of the United Nations Relief and Works Agency (UNRWA) contested the Agency’s decision to apply a negative interest rate of -17.71% to the average balance of her Provident Fund account upon separation on medical grounds.
The UNRWA Dispute Tribunal in Judgment No. UNRWA/DT/2024/038/Corr.01, dismissed the application on the merits, finding that the Agency correctly applied the last published special interest rate and calculated the Provident Fund payout in accordance with the applicable rules and Finance Technical Instruction No. 9.
Former staff member appealed.
Legal Principle(s)
Under Area Staff Rule 106.1, it is the last declared special interest rate that applies to a separating participant’s Provident Fund account up to and including the month immediately preceding payment. This means that the applicable special interest rate is the one that was in force in the month directly preceding payment. A former special interest rate shall not apply if it was superseded by a subsequent special interest rate that entered into force in the month directly preceding payment. Similarly, a special interest rate that was published in the month of payment shall not apply.
The role of the Appeals Tribunal is not to review cases de novo, but rather to examine the impugned Judgment for any errors of law, of fact that resulted in an unreasonable outcome, or of procedure that might have affected the decision. It is the appellant’s burden to prove that such errors exist.