text: accordance withtheRegulations. 59.Afurther pointtobearinmindisthatataparticular pointintimethe marginbywhichonetrackexceeds theotherwilldifferfromindividual to individual depending onhisorherdateofseparation. Thelowerthe"cap",the greater willthediscrepancy between thetwoamounts become. 60.TheBoardalsonotedthatdespite theefforts madetoexplain the20percent "cap"tobeneficiaries whohadbeenunderthetwo-track system, andnotwithstanding theexplicit transitional arrangements approved bytheGeneral Assembly, which guarantee thedollaramountofthebenefit asat31December 1984,theintroduction ofthe"cap"hadgivenrisetomuchanxiety andlackofunderstanding. The decisions thathavebeentakenbyretired participants basedonthe20percent "cap"willnotnecessarily bevalidifthe"cap"isreduced. Anychangeinthe "cap"wouldthusfurther exacerbate theexisting difficulties. 61.Onthebasisofitsfurther reviewoftheoperation ofthetwo-track pension adjustment system, theBoardhasconcluded thatthe20percent"cap"willhavE'to bemonitored overthenextfewyearsbeforeadecision canbetakenonwhether to recommend changes totheGeneral Assembly. Suchadelaywouldhavenoadverse financial implications fortheFundbecause: (a)Beneficiaries whowereinreceipt ofbenefits asat31December 1984are protected bytransitional arrangements, approved by·theGeneral Assembly, that wouldnotbeaffected byalowering ofthe."cap"J (b)Newbeneficiaries areunlikely tooptforthetwo-track systemaslongas theUnitedStatesdollarremains 3trong. 4.Compensatory orinterim measures regarding participants whose pensionable remunera~ion waslowered asat1January 1985 62.Insection 11,paragraph 2,ofresolution 39/246theGeneral Assemblyrapproved, forimplementation witheffectfrom1January 1985,thescaleof kpensionable remuneration fortheProfessional andhighercategories thathadbeenJrecommended byICSC.InitsreporttotheAssembly atitsthirty-n~nth session the ~Boardhadconcurred intheimplementation ofthescaleandhadagreedwiththe ;.transitional arrangements recommended bytheCommission. !!IThetransitional ~arrangements inQuestion weredescribed bytheCommission asfollows: i:! "[Staff members) inservice priorto1January 1985whosepensionable ~ remuneration on31December 1984ishigherthantheamountapplicable asof 1January 1985wouldretaintheirpensionable remuneration asat31December 1984,untilsuchtimeasitisovertaken bythenewscaleadjusted inthemannerdescribed below. Forstaffmembers receiving promotions orstep increases after1,January 1985,thepensionable remuneration amountdetermined inaccordance withthenewscaleshouldbecompared withtheamountapplicable asat31December 1984,andthehigherofthesetwoamounts should be used."12/ 63.TheGeneral Assembly didnotapprove theCommission's recommendation. Instead, insection 11,paragraph 3,ofresolution 39/246,itrequested "theUnited Nations JointStaffPension Boardtoconsider, takingintoaccount, interalia,the legalaspects oftheauestion, anycompensatory orinterim measures regarding participants whosepensionable remuneration hasbeenhigherthanitwillbeasof 1January 1985,andtomakeappropriate recommendations totheGeneral Assembly at itsfortieth session, itbeingunderstood thatsuchrecommendations willalso address theauestion oftheequality oftreatment ofparticipants retiring on different dates, andthatsuchmeasures aswillbeapproved bytheAssembly would, ifnecessary, beapplicable witheffectfrom1January 1985". 64.TheBoardwasinformed thatsection 11,paragraph 3,ofresolution 39/246 reflected twocpncerns: ontheonehand,therewasadesiretoprevent thefinal average remuneration, especially ofparticipants atthehighest levels, from continuing togrowbeyondthelevelsattained asat31December 1984;and,onthe other,therewasconcern thatparticipants whohadcontributed onthebasisof higherscalesbefore1January 1985shouldnotlosethebenefit ofthosehigher contributions. 65."Finalaverage remuneration" isdefined inarticle 1(~)(i)ofthe Regulations oftheFundastheaverage annualpensionable remuneration ofa participant duringthe36completed calendar monthsofhighest pensionable remuneration withinthelast5yearsofhisorhercontributory service. The following table·showsthescalesofpensionable remuneration ineffectduringthe threeyearsupto31December 1984,theresultant finalaverage remuneration, and thescaleeffective 1January 1985forthetopstepofallgradesinthe Professional andhighercategories. -19-\. ~OCtober 1981scaleIOCtober 1982scaleIOCtober 1984scaleIFinalaverage I (9months: I(24months: I(3months: Iremuneration I January- IOCtober 1982- IOCtober- Iasat I1January 1985
analysis: The text appears to be discussing the pension system of the United Nations, specifically the two-track pension adjustment system and the introduction of a 20% "cap" on pensionable remuneration. The text also mentions the calculation of final average remuneration and the need for compensatory or interim measures regarding participants whose pensionable remuneration has been higher than it will be as of 1 January 1985. This suggests that the category is likely to be related to employment or human resources, possibly within the context of international organizations.