STU/66th Council/14/025
13 November 2014

CHANGES TO THE RULES OF THE MEDICAL BENEFITS FUND
HOW DO THEY AFFECT YOU?

On the eve of the discussion of the Medical Benefits Fund (MBF) in the Executive Board (document 195 EX/5 Part V C), that is, at 17:57 on 21 October 2014, the Administration issued Administrative Circular AC/HR/43 by email to all staff. Few people will have had the time to read, let alone understand, the importance of this Circular or the changes thus being made to the MBF Rules.

This timing is similar to that which occurred during the 37th session of the General Conference in November 2013, when document 37 C/38, The state of the Medical Benefits Fund and introduction of the new governance structure, was published the day before it was due to be discussed in the APX Commission, allowing little time for the delegates to read and digest the contents. (Is this timing deliberate?) In the event, the Commission and then the General Conference, in 37C/Resolution 85, voted to amend the MBF Rules. It did so despite the fact that the Extraordinary General Assembly of Participants of the MBF, meeting on 4 September 2013, had resolved that it was premature to take a decision on the proposed changes, in view of the limited time available and the receipt of the essential background document only on the eve of the meeting (read the Resolution).

The Rules in force in 2013 already provided for their amendment, particularly those concerning the management of the Fund, and the financial provisions :

Proposed amendments to any of the provisions contained in Sections V, VI and VII of these Rules and the annexes theretomust be approved by the General Assembly of Participants. After a vote by the General Assembly, they shall be submitted to the Director-General, who shall take such action as he/she considers necessary. [Article 7.1, emphasis added]

Apart from the legitimacy or not of the action by the General Conference in disregarding and overriding the existing Rules, what are the changes now being implemented with Administrative Circular AC/HR/43 , and how do they affect you?

The covering note from the Director of the Bureau of Human Resources Management lists, in §4, a number of key changes (some changes in italics and others are not mentioned). What it does not indicate are the significant changes to a principle and a practicality, in that:

  • the Fund is no longer the autonomous, self-managed health insurance scheme it has been for the past 66 years;
  • participants no longer have the right to approve changes that affect them directly, such as changes to the contributions, that is the amount you pay, to the Fund.

The Fund will be administered by an all-powerful Co-ordinator appointed by the Director-General and accountable solely to him/her (see the comparison between the 2008 Rules and the AC/HR/43).

STU has constantly argued with the Administration that these new Rules should not come into force (see STU Addendum to the document 37 C/38 and STU comments on Draft Administrative Circular AC/HR/38).

As your rights to participate directly in the Medical Benefits Fund are being violated, the STU urges you to appeal against this injustice and the risk of arbitrary decisions about reimbursement rates.

What can you do?

Make an appeal in writing, no later than 20 November if you are at Headquarters, 20 December if you are in the Field. Should you wish to do so, please contact president.stu@unesco.org.

Obviously, the more staff members who appeal, the stronger the case for demanding that the Administration rescind this Circular and that the Participants in the Fund be allowed to decide, as previously, on any amendments to be made to the Rules of the Fund.

An information meeting for staff at Headquarters will be held
on 17 November 2014 at 12:30 in Room XII (Fontenoy)

Read the presentation

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