RULE 1

DEFINITIONS

In these Administrative Rules the following terms, listed hereunder in alphabetical order, shall have the following meanings:

"Administrative Rules" means these rules together with Annex "A", as amended from time to time.

"Charter" means the Charter of the Provident Fund of the Preparatory Commission for the Organisation for the Prohibition of Chemical Weapons, The Hague, 25 June 1993, as amended from time to time and deposited with the Secretary-General of the Permanent Court of Arbitration in The Hague, the Netherlands.

"Chemical Weapons Convention" means the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction, Paris, 13 January 1993.

"Commission" means the Preparatory Commission for the Organisation for the Prohibition of Chemical Weapons, established in accordance with the Paris Resolution.

"Contributable Remuneration" means, in relation to each Contributor: 

(a)        In the case of participants in the general service and other locally-recruited staff categories, the equivalent in Dutch Guilders of the sum of:

(i)         the participant's gross salary; and

(ii)        any language allowance payable to him or her; and

(b)        In the case of participants in the professional and higher categories, the scale of pensionable remuneration as established and adjusted by the International Civil Service Commission for staff in these categories in the United Nations common system.

"Contributor" means a person who is a staff member of the Secretariat on a fixed term appointment.

"Management Board" means the management board of the Provident Fund as established in accordance with Article 4 of the Charter.

"Net Return" means all interest and other income earned on the Provident Fund's capital assets less all cost and administrative expenses as well as possible losses resulting from operations of the Provident Fund in so far as such expenses and losses are not met by the reserve account referenced to in Rule 6.2 of these Administrative Rules.

"Paris Resolution" means the resolution approved by the signatory States to the Chemical Weapons Convention and entitled, "Resolution Establishing the Preparatory Commission for the Organisation for the Prohibition of Chemical Weapons", Paris, 13 January 1993.

"Provident Fund" means the provident fund established in accordance with the Charter.

"Secretariat" means the Provisional Technical Secretariat for the Preparatory Commission for the Organisation for the Prohibition of Chemical Weapons established in accordance with the Paris Resolution. 

"Staff Regulations" means the staff regulations of the Commission as adopted by it during its Fourth Session and as amended from time to time or, for the period before such adoption, the provisional staff regulations adopted by the Commission during its First Session.

"Staff Rules" means the staff rules of the Commission made by the Executive Secretary of the Preparatory Commission for the Organisation for the Prohibition of Chemical Weapons in accordance with the provisions of the Staff Regulations and as amended from time to time.

RULE 2

DECLARATION OF BENEFICIARIES

Each Contributor shall execute a letter in form and substance as set forth in Annex "A" hereto declaring his/her beneficiaries in accordance with the provisions of Rule 6.4 of the Administrative Rules.

RULE 3

CONTRIBUTIONS TO THE PROVIDENT FUND

3.1       Each contributor shall at the end of each calendar month make a contribution to the Provident Fund equal to such percentage of his/her Contributable Remuneration as is determined in the Staff Rules (the "Individual Contribution Amount").  Such contribution shall be made by the Secretariat on behalf of such Contributor by way of a monthly deduction of the Individual Contribution Amount from the salary payable to such Contributor and paying such amount to the Provident Fund.

3.2       In respect of each Contributor's  contribution in accordance with the provisions of Rule 3.1 of these Administrative Rules, the Secretariat shall at the end of the same calendar month in which such Individual Contribution Amount is made, make a contribution to the Provident Fund in an amount equal to such percentage of his/her Contributable Remuneration as is determined in accordance with the Staff Rules. 

3.3       The obligations of a Contributor and of the Secretariat, respectively,  to make contributions to the Provident Fund lapse automatically as from the date upon which, for any reason whatsoever, the Contributor ceases to be in the service of the Secretariat.

RULE 4

RESOURCES OF THE PROVIDENT FUND

The resources of the Provident Fund shall consist of all contributions made to it in accordance with the provisions of Rule 3 and all income earned thereon, subject to the following provisions:

(a)        All contributions to the Provident Fund in accordance with the provisions of Rule 3 and interest received as well as all other payments to the Provident Fund shall be paid into bank accounts opened and held exclusively in the  name of the Provident Fund;

(b)        Any securities or other financial instruments acquired by, and with the resources of, the Provident Fund shall be deposited with banks for and on behalf of the Provident Fund only;

(c)        Any disposition regarding bank accounts or deposits held on behalf of the Provident Fund involving payments from its funds shall require the signature of at least two members of the Management Board;

(d)        The Provident Fund shall not have the ability to take up loans nor shall any of its resources be committed as security for contractual obligations, except payment obligations to Contributors in accordance with Rule 6;

(e)        Contributors shall have no right, interest or entitlement to or in any of the accounts or deposits mentioned in paragraphs (a) and (b) above;

(f)         Contributors shall only have such rights against the Provident Fund as are explicitly conferred upon them by the provisions of these Administrative Rules, as amended from time to time;

(g)        All resources of the Provident Fund shall be utilised by it in accordance with the provisions of these Administrative Rules as amended from time to time; and

(h)        For the purpose of the administration and investment of resources contributed to the Provident Fund, and the liquidation of investments made with resources contributed to the Provident Fund, the Management Board may seek the advice of internationally known and established independent professional investment/money management advisers.

RULE 5

MANAGEMENT OF THE PROVIDENT FUND

5.1       The Provident Fund shall be managed by the Management Board in accordance with the provisions of these Administrative Rules and with due regard to the observance, mutatis mutandis, of the Financial Regulations and Rules of the Commission and its Secretariat.

5.2       In accordance with Article 9 (1) of the Charter, the financial year shall be the calendar year, provided that should the Provident Fund be dissolved in accordance with Article 11  of the Charter prior to the end of a calendar year the financial period shall be ended by that date.

5.3.      The following principles shall be adhered to in managing the Provident Fund:

(a)        Resources of the Provident Fund shall be maintained in interest bearing deposits with banks having at least an AA credit rating by a well-reputed credit rating agency or shall be invested;

(b)        Investments may be made in:

(i)         securities issued or guaranteed by Governments with an AA credit rating by a well-reputed credit rating agency; and

(ii)        debt instruments issued by public or private corporations, including bank and other financial institutions, provided that such corporations have an AA credit rating by a well-reputed credit rating agency; and

(c)        A reasonable diversity, as well as adequate liquidity to meet the Provident Fund's payment obligations towards the Contributors, shall be maintained in the investment portfolio of the Provident Fund.

5.4       The resources of the Provident Fund shall be held in such currencies as is determined by the Management Board.

5.5       In no event shall the Management Board be liable to the Commission or any Contributor or any of their heirs, assigns or successors in title in respect of the manner in which resources contributed to the Provident Fund are administered or invested or of the manner in which or the time at which investments are made with the resources of the Provident Fund except only in the case of gross negligence or wilful misconduct on the part of the Management Board.

RULE 6

PAYMENT FROM THE PROVIDENT FUND

6.1       Contributions made by individual Contributors shall be assigned to separate administrative accounts ("Contributors A-account" in the name of the particular staff member) with the Provident Fund.  Contributions made by the Secretariat on behalf of individual Contributors shall likewise be assigned to separate administrative accounts ("Contributors B-account" in the name of the particular staff member) with the Provident Fund.

6.2       If a Contributor ceases to serve with the Secretariat for other than health reasons on a date occurring before the date of his or her having been in the service of the Secretariat for a total period of three months, such Contributor shall be entitled to receive from the Provident Fund as of the last day for pay purposes determined pursuant to the Staff Rules (the "Payment Date") the total amount contained in his/her Contributors A-account, including any transfer of Net Return having taken place before the Payment Date in accordance with Rule 6.7 of these Administrative Rules.  The amount contained in the Contributors B-account, including any Net Return having been transferred thereto, shall be transferred to a special reserve account of the Provident Fund (the "Reserve Account").  The Management Board may dispose of the Reserve Account to cover any losses incurred by the Provident Fund and to meet costs and administrative expenses involved in its operations.

6.3       (a)        If a Contributor ceases to serve with the Secretariat on a date occurring on or after the date of his or her having been in the service of the Secretariat for a total period of three months, such Contributor shall be entitled to receive from the Provident Fund as of the Payment Date the total amount contained in his or her Contributors A- and B-accounts, respectively, including any Net Return having been transferred to both.

(b)        The same entitlement shall pertain to a Contributor who ceases to serve with the Secretariat prior to having completed three months of service if the said Contributor provides medical evidence satisfactory to the Management Board that he or she is unable for health reasons to fulfil the terms of his or her employment.

6.4       If a Contributor dies while serving with the Secretariat, the person(s) designated in the Contributor's declaration of beneficiaries submitted pursuant to Rule 2 of these Administrative Rules, shall receive from the Provident Fund, as of the Payment Date, the total amount contained in the Contributors A- and B-accounts including any Net Return having been transferred thereto.  If the Contributor has a spouse and/or children, who are recognised as dependant(s) under the terms of the Staff Rules, then the Provident Fund shall not accept a designation of beneficiaries from that Contributor which allocates more than 50 (fifty) per cent of his or her total entitlements in case of death to beneficiaries other than those dependants.

6.5       If payments in accordance with Rules 6.3 to 6.4 of these Administrative Rules have been effected from the Provident Fund during the course of a financial year, recipients of such payments shall also be entitled to receive a pro rata share of the Net Return for that financial year corresponding to their A-accounts and, when appropriate, to their B-accounts in accordance with the provisions of Rule 6.7 of these Administrative Rules.  Payments of Net Return for the financial year during which the payment is effected shall take place when the audited annual accounts of the Provident Fund have been approved by the Management Board.

6.6       Any payment to be made by the Provident Fund under this rule shall be made in the currency or unit of account in which the books and accounts of the Provident Fund are maintained.

6.7       Based on the Net Return earned each financial year, a monthly rate of return on capital held in the Contributors A- and B-accounts for the financial year under consideration shall be calculated retroactively and the annual Net Return shall be distributed among the accounts accordingly.  The Management Board shall annually inform all Contributors of the status of their respective Contributors A- and B-accounts.

6.8       If in the determination of the Management Board there is any dispute or uncertainty as to the amount payable to a Contributor under this rule or as to the person entitled to receive such payment (as in the case of death of a Contributor), the Management Board shall be entitled, but not obliged, to refuse payment of the amount deemed by it to be payable and shall in the event of refusal to pay, retain such amount on a separate interest-bearing deposit account until such time as it shall determine that such dispute or uncertainty has been finally resolved to its satisfaction, whereupon the resolved amount including interest earned due to the interest bearing deposit, less all costs and expenses, shall be paid to the Contributor, or his or her beneficiaries in the event of the death of the Contributor.

6.9       A Contributor shall not be entitled to transfer, assign, mortgage, pledge or otherwise encumber or dispose of any right or interest he or she might have to or in any payment pursuant to this rule or these Administrative Rules in general.

6.10     A Contributor shall not be entitled to receive any loan or advance from the Provident Fund except that payment on account of final settlement may be made at the discretion of the Management Board if a final payment were to be unduly delayed.

RULE 7

DISSOLUTION OF THE PROVIDENT FUND

7.1       The Provident Fund may be dissolved in accordance with the Charter and its resources shall, notwithstanding any of the foregoing provisions of these Administrative Rules, be applied by the Management Board as follows and in the following order:

(a)        To pay all administrative costs and expenses incurred and still to be incurred directly in relation to the Provident Fund;

(b)        To pay all administrative costs and expenses incurred and to be incurred by the Management Board directly in relation to the liquidation of the Provident Fund.

(c)        To reserve any amount determined by the Management Board in its discretion to be necessary to cover any future actual or potential liability of the Provident Fund; and

(d)        To distribute among the Contributors their entitlements as recorded, in accordance with Rule 6.5, in the Contributors A- and B-accounts. 

7.2       Any amount thereafter remaining in the Provident Fund shall be apportioned and disposed of as may be determined by the Management Board.

RULE 8

AMENDMENTS OF THE ADMINISTRATIVE RULES

These Administrative Rules may be amended at any time by the Management Board provided that:

(a)        The provisions of Article 12 of the Charter shall be observed;

(b)        No amendment shall be given retroactive effect if such retroactive effect will be to the disadvantage of the Contributors; and

(c)        Each amendment is notified to the Contributors.

RULE 9

AUDIT

The management of the Provident Fund shall be subject to an annual audit by an External Auditor (preferably the External Auditor of the Commission), who should issue the appropriate audit statement in respect of the Fund's  financial statements.

ANNEX "A" (continued)

DECLARATION OF BENEFICIARIES

I, the undersigned*, __________________________________________, hereby designate the following person(s) to be entitled to receive my entitlements from the Provident Fund, in case of my demise and provided he/she/they+ survive me by 24 hours, in the following proportions: