Workshop on the Post Adjustment System

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Presentation transcript:

Workshop on the Post Adjustment System Montreal, 26 June 2009 Montreal, 26 June 2009 Workshop on the Post Adjustment System

Workshop on the Post Adjustment System Outline Introduction Operation of the Post Adjustment System Components of the Post Adjustment Index Updating Post Adjustment Classifications (PACs) over time – Group I Factors influencing evolution of Net Take-home Pay Issue #1: Salaries not keeping up with local inflation Issue #2: Comparison of NTPs based on PAI and other indices Latest developments for the 2010 round Proposed modifications to the Operational Rules Montreal, 26 June 2009 Workshop on the Post Adjustment System

Workshop on the Post Adjustment System UN Salary structure Staff assessment Net salary Post adjustment Gross base salary Net base salary Montreal, 26 June 2009 Workshop on the Post Adjustment System

Post Adjustment Circular (as of 1 June 2009) Duty Station Exchange Rate Index Multiplier Thresholds dependant single As of Geneva 1.089 179.6 78.0 21 23 Apr. 2006 London 0.628 161.8 66.3 27 30 Madrid 0.717 157.2 62.5 19 Nov. 2008 Montreal 1.114 149.1 49.1 17 Jul. 2001 New York 1.000 168.8 68.5 29 32 Aug. 2008 Rome 164.4 67.7 20 22 Paris 165.8 66.4 Jan. 2004 Vienna 164.2 65.0 Washington 145.6 45.6 25 28 Montreal, 26 June 2009 Workshop on the Post Adjustment System

Operation of the PA System ACPAQ Staff at large Commission National/International Statistical Agencies Secretariat Local Post Adjustment Committee Montreal, 26 June 2009 Workshop on the Post Adjustment System

Operation of the PA System (at base of the system - New York) New York Post Adjustment moves along with disaggregated CPIs plus special indices movements if margin is within 110 and 120. Increases in New York could be triggered if a full 5% increase in cost of living has accumulated since the preceding review or after 12 months, whichever comes first. Montreal, 26 June 2009 Workshop on the Post Adjustment System

Operation of the PA System (duty stations other than New York) Goal - Equalization of purchasing power of UN remuneration at duty stations relative to that in New York Method - Periodic cost-of-living surveys (compare prices/cost of a given volume of goods and services) Result – Post Adjustment Index (PAI) indicates how much to pay staff at a duty station in order to maintain Purchasing Power Parity (PPP) with New York. Montreal, 26 June 2009 Workshop on the Post Adjustment System

Operation of the PA System (duty stations other than New York) Question – How is PPP with New York maintained over time? PAI calculated on the basis of Cost-of-Living Survey guarantees that PPP is exactly correct PAI adjusted at least once every month to reflect: Exchange-rate fluctuations Movements in all PAI components PPP approximately maintained Revised PAI determines PAC Montreal, 26 June 2009 Workshop on the Post Adjustment System

Components of the PA Index Major Components (System-wide): 33% Out-of-Area 31% In-Area (excluding Housing) 22% Housing Ranges of variation: OA 22.5 – 60.0 IA (excluding Housing) 11.4 – 49.0 Housing 7.0 – 36.7 PC 7.8 – 13.4 MI 1.9 – 6.9 10% Pension Contribution 4% Medical Insurance Montreal, 26 June 2009 Workshop on the Post Adjustment System

Workshop on the Post Adjustment System Out-of-Area Index Average of US dollar-based inflation in 21 selected countries USA Italy France Belgium Netherlands Luxembourg Denmark Sweden Norway Finland UK Ireland Germany Austria Switzerland Japan Hong Kong Singapore Portugal Spain Greece Weight of: Eurozone Eurozone Euro-like + Euro-like 68.2% US Dollar US Dollar-like US Dollar + Mixed behaviour US Dollar-like 13.6% Mixed behaviour 18.2% Montreal, 26 June 2009 Workshop on the Post Adjustment System

Workshop on the Post Adjustment System OA Index Montreal, 26 June 2009 Workshop on the Post Adjustment System

Inflation experienced by international staff In-area excluding Housing (local) inflation Inflation experienced by international staff Out-of-area “inflation” Housing inflation Medical insurance “inflation” Pension contribution “inflation” Montreal, 26 June 2009 Workshop on the Post Adjustment System

Workshop on the Post Adjustment System Updating of PACs GENERAL PRINCIPLES: Maintain approximate PPP with New York by adjusting PACs Adjustment according to specific economic circumstances: Inflation experienced by international staff (not just local inflation) Exchange-rate fluctuations Montreal, 26 June 2009 Workshop on the Post Adjustment System

Workshop on the Post Adjustment System Updating of PACs 0.5% rule Multipliers for Group I duty stations are adjusted on a monthly basis for exchange rate movement. Net Take-home Pay (NTP) in local currency is maintained within a range of +/- 0.5% of established pay level. Aim: To stabilize NTP in local currency Montreal, 26 June 2009 Workshop on the Post Adjustment System

Updating of PACs (5%, 12-month rule, Group I) Review for inflation, or PAC review, is made after: whichever comes first! A full 5% movement in the cost of living OR 12 months have elapsed from the reference date The PAC review date becomes the new reference date for future PAC reviews. Montreal, 26 June 2009 Workshop on the Post Adjustment System

Updating of PACs (0.5% rule - Vienna) Implementation Date Exch. Rate Salary (local) Multiplier NTP (local) 2008 Apr 0.634 7,031.49 77.3 6,431.25 May 0.642 7,121.18 6,512.40 Jun 0.643 7,122.13 77.0 6,510.47 Jul 0.636 7,115.49 78.8 6,511.22 Aug 0.672 7,151.49 70.1 6,472.27 Sept 0.718 7,197.97 60.2 6,470.61 Oct 0.742 7,222.22 55.6 6,473.36 Nov 0.773 7,253.54 50.0 6,472.99 Dec 0.772 7,252.53 50.2 6,474.28 2009 Jan 0.756 7,235.57 49.5 6,471.72 Feb 0.762 7,242.41 48.5 6,474.30 Mar 0.782 7,262.62 45.1 6,474.01 Apr 0.759 7,239.38 49.0 6,473.11 0.735 7,589.83 61.3 6,847.19 0.717 7,571.64 65.0 6,849.34 5% rule Pension contribution +62.13 US$ Consolidation 2.33% 12-month rule Montreal, 26 June 2009 Workshop on the Post Adjustment System

Workshop on the Post Adjustment System Updating of PACs Montreal, 26 June 2009 Workshop on the Post Adjustment System

Workshop on the Post Adjustment System Updating of PACs Montreal, 26 June 2009 Workshop on the Post Adjustment System

Workshop on the Post Adjustment System Updating of PACs Montreal, 26 June 2009 Workshop on the Post Adjustment System

Workshop on the Post Adjustment System Updating of PACs Montreal, 26 June 2009 Workshop on the Post Adjustment System

Workshop on the Post Adjustment System Updating of PACs Montreal, 26 June 2009 Workshop on the Post Adjustment System

Workshop on the Post Adjustment System Updating of PACs Montreal, 26 June 2009 Workshop on the Post Adjustment System

Workshop on the Post Adjustment System Updating of PACs Montreal, 26 June 2009 Workshop on the Post Adjustment System

Workshop on the Post Adjustment System Updating of PACs Montreal, 26 June 2009 Workshop on the Post Adjustment System

Workshop on the Post Adjustment System Updating of PACs Montreal, 26 June 2009 Workshop on the Post Adjustment System

Latest PAC Reviews for Headquarters duty stations Updating of PACs Latest PAC Reviews for Headquarters duty stations PAC NTP (local currency) Duty station Date Reason 0.5% updating Regular updating Implemented New Prior month Increase (%) Vienna (EUR) May-09 TMR 153.3 161.3 6,847 6,473 5.78 Montreal (CAD) Jun-09 143.8 149.1 9,508 9,130 4.14 Paris (EUR) 156.8 162.7 6,913 6,638 Rome (EUR) Apr-09 149.5 159.3 6,974 6,499 7.30 Madrid (EUR) Mar-09 139.8 150.3 6,734 6,211 8.43 Geneva (CHF) Jul-08 FPR 190.5 192.0 11,373 11,274 0.88 London (GBP) 134.0 151.6 6,052 5,268 14.88 New York (USD) Aug-08   172.4 9,775 9,174 6.55 Note: TMR – Twelve-month review FPR – Five-percent rule Montreal, 26 June 2009 Workshop on the Post Adjustment System

Factors influencing evolution of NTPs Local inflation Affects only the In-area excluding housing component Measured by local CPIs Charts show local CPIs Montreal, 26 June 2009 Workshop on the Post Adjustment System 27 27

Factors influencing evolution of NTPs Local inflation Montreal, 26 June 2009 Workshop on the Post Adjustment System 28 28

Factors influencing evolution of NTPs Local inflation Montreal, 26 June 2009 Workshop on the Post Adjustment System 29 29

Factors influencing evolution of NTPs Local inflation Montreal, 26 June 2009 Workshop on the Post Adjustment System 30 30

Factors influencing evolution of NTPs Local inflation Montreal, 26 June 2009 Workshop on the Post Adjustment System 31 31

Factors influencing evolution of NTPs Local inflation Montreal, 26 June 2009 Workshop on the Post Adjustment System 32 32

Factors influencing evolution of NTPs Local inflation Montreal, 26 June 2009 Workshop on the Post Adjustment System 33 33

Factors influencing evolution of NTPs Local inflation Montreal, 26 June 2009 Workshop on the Post Adjustment System 34 34

Factors influencing evolution of NTPs Housing component Rents: Based on IOS/OECD data Direct comparison by dwelling size/type Protections for housing-cost fluctuations Protections for payments in non-local hard currency Charts show evolution of rents Others: Maintenance and repair Water Refuse collection Electricity, gas and fuel Other housing costs All these elements are based on price comparisons with New York, with the exception of “Other housing costs” and “Refuse collection”, which are based on information provided by staff Montreal, 26 June 2009 Workshop on the Post Adjustment System 35 35

Factors influencing evolution of NTPs Housing component (rent) Montreal, 26 June 2009 Workshop on the Post Adjustment System 36 36

Factors influencing evolution of NTPs Housing component (rent) Montreal, 26 June 2009 Workshop on the Post Adjustment System 37 37

Factors influencing evolution of NTPs Housing component (rent) Montreal, 26 June 2009 Workshop on the Post Adjustment System 38 38

Factors influencing evolution of NTPs Housing component (rent) Montreal, 26 June 2009 Workshop on the Post Adjustment System 39 39

Factors influencing evolution of NTPs Housing component (rent) Montreal, 26 June 2009 Workshop on the Post Adjustment System 40 40

Factors influencing evolution of NTPs Housing component (rent) Montreal, 26 June 2009 Workshop on the Post Adjustment System 41 41

Factors influencing evolution of NTPs Housing component (rent) Montreal, 26 June 2009 Workshop on the Post Adjustment System 42 42

Factors influencing evolution of NTPs Housing component (rent) Montreal, 26 June 2009 Workshop on the Post Adjustment System 43 43

Factors influencing evolution of NTPs Medical insurance contribution Average medical insurance contribution at a duty station Component with the lowest weight in the PAI Charts show the evolution of the medical insurance contribution over time Montreal, 26 June 2009 Workshop on the Post Adjustment System 44 44

Factors influencing evolution of NTPs Medical insurance contribution Montreal, 26 June 2009 Workshop on the Post Adjustment System 45 45

Factors influencing evolution of NTPs Medical insurance contribution Montreal, 26 June 2009 Workshop on the Post Adjustment System 46 46

Factors influencing evolution of NTPs Medical insurance contribution Montreal, 26 June 2009 Workshop on the Post Adjustment System 47 47

Factors influencing evolution of NTPs Medical insurance contribution Montreal, 26 June 2009 Workshop on the Post Adjustment System 48 48

Factors influencing evolution of NTPs Medical insurance contribution Montreal, 26 June 2009 Workshop on the Post Adjustment System 49 49

Factors influencing evolution of NTPs Medical insurance contribution Montreal, 26 June 2009 Workshop on the Post Adjustment System 50 50

Factors influencing evolution of NTPs Medical insurance contribution Montreal, 26 June 2009 Workshop on the Post Adjustment System 51 51

Factors influencing evolution of NTPs Pension contribution Pension contribution paid by staff Same proportion of the pensionable remuneration scale for each grade/step Calculated in US dollars, so different impact on NTP in local currency Chart shows the evolution, in absolute US dollar values, of the pension contribution Montreal, 26 June 2009 Workshop on the Post Adjustment System 52 52

Factors influencing evolution of NTPs Pension contribution Montreal, 26 June 2009 Workshop on the Post Adjustment System 53 53

Factors influencing evolution of NTPs Out-of-Area Index Montreal, 26 June 2009 Workshop on the Post Adjustment System 54 54

Evolution of the Cost-of-Living (Walsh) Index Montreal, 26 June 2009 Workshop on the Post Adjustment System 55 55

Evolution of the Cost-of-Living (Walsh) Index Montreal, 26 June 2009 Workshop on the Post Adjustment System 56 56

Evolution of the Cost-of-Living (Walsh) Index Montreal, 26 June 2009 Workshop on the Post Adjustment System 57 57

Evolution of the Cost-of-Living (Walsh) Index Montreal, 26 June 2009 Workshop on the Post Adjustment System 58 58

Evolution of the Cost-of-Living (Walsh) Index Montreal, 26 June 2009 Workshop on the Post Adjustment System 59 59

Evolution of the Cost-of-Living (Walsh) Index Montreal, 26 June 2009 Workshop on the Post Adjustment System 60 60

Evolution of the Cost-of-Living (Walsh) Index Montreal, 26 June 2009 Workshop on the Post Adjustment System 61 61

Evolution of the Cost-of-Living (Walsh) Index Montreal, 26 June 2009 Workshop on the Post Adjustment System 62 62

Evolution of the Cost-of-Living (Walsh) Index Montreal, 26 June 2009 Workshop on the Post Adjustment System 63 63

Existing Pay Index vs. Survey PAI 1995 round 2000 round 2005 round Duty Station Survey Date Existing Pay Index Survey PAI Diff. (%) Geneva Nov 1995 212.6 198.1 -6.8% Sep 2000 124.2 129.0 3.9% Sep 2005 163.5 165.4 1.1% London 142.0 156.3 10.1% 127.6 136.4 6.9% 152.3 165.7 8.8% Madrid /a -  - 139.7 141.9 1.6% Montreal Oct 1995 108.9 14.1% 107.6 119.2 10.8% 143.3 145.1 1.2% Paris 163.0 172.3 5.7% 109.0 117.9 8.1% 146.1 154.8 5.9% Rome 132.2 137.3 Oct 2000 100.0 112.2 12.2% Oct 2005 149.2 2.1% Vienna 179.2 176.4 -1.6% 107.4 9.7% 142.4 148.5 4.3% Washington, D.C. Sep 1995 123.2 127.5 3.5% 116.8 126.6 8.4% 138.3 146.8 6.1% /a Madrid became an HQ duty station only in the 2005 round Montreal, 26 June 2009 Workshop on the Post Adjustment System 64 64

Issue #1 Salaries not keeping up with local inflation Salary setting methodology: Keep NTP levels stable in local currency from month to month by adjusting for exchange-rate fluctuations Review PAC once a year for possible increases in salary levels by adjusting for Exchange-rate fluctuations Inflation “experienced by international staff” Apply new PR scale whenever PA for New York changes Montreal, 26 June 2009 Workshop on the Post Adjustment System 65 65

Issue #1 Salaries not keeping up with local inflation Salary setting methodology not designed to align salaries with local inflation Only the in-area (excluding housing) component of the PAI is affected by local inflation, measured by local CPIs Other components adjusted by other mechanisms approved by the Commission (Housing, MI, PC, OA) CPIs are adjusted to reflect expenditure patterns of UN common system professional staff before being used in PAI calculations See charts Montreal, 26 June 2009 Workshop on the Post Adjustment System 66 66

Issue #1 Salaries not keeping up with local inflation Montreal, 26 June 2009 Workshop on the Post Adjustment System 67 67

Issue #1 Salaries not keeping up with local inflation Montreal, 26 June 2009 Workshop on the Post Adjustment System 68 68

Issue #1 Salaries not keeping up with local inflation Montreal, 26 June 2009 Workshop on the Post Adjustment System 69 69

Issue #1 Salaries not keeping up with local inflation Montreal, 26 June 2009 Workshop on the Post Adjustment System 70 70

Issue #1 Salaries not keeping up with local inflation Montreal, 26 June 2009 Workshop on the Post Adjustment System 71 71

Issue #1 Salaries not keeping up with local inflation Montreal, 26 June 2009 Workshop on the Post Adjustment System 72 72

Issue #1 Salaries not keeping up with local inflation Montreal, 26 June 2009 Workshop on the Post Adjustment System 73 73

Issue #1 Salaries not keeping up with local inflation Montreal, 26 June 2009 Workshop on the Post Adjustment System 74 74

Issue #1 Salaries not keeping up with local inflation Montreal, 26 June 2009 Workshop on the Post Adjustment System 75 75

Workshop on the Post Adjustment System Issue #2 Comparison of NTPs based on PAI and those based on other indices Two indices based on different Methodologies Target populations Basket of goods/services Data processing procedures … will produce different results Examples Big Mac Index PPP Indices (OECD) Montreal, 26 June 2009 Workshop on the Post Adjustment System 76 76

Issue #2 PAI versus PPP Index (OECD) Even though the principle of post adjustment is similar to that of PPP, there are important differences: PPP indices based on comparison of prices of goods while PAI also includes expenditures/costs PPP index calculations based on In-area prices only, while PAI based on both in-area and out-of-area expenditures Montreal, 26 June 2009 Workshop on the Post Adjustment System 77 77

Issue #2 PAI versus PPP Index (OECD) OECD PPPs used: To obtain volume measures of GDP in a common currency To allocate EU Commission’s Structural Funds, aimed to gradually reduce economic disparities, according to PPP-converted GDP per capita Series proposed by IAEA based on “Actual Individual Consumption”, not expenditures Linked with expenditures not just of households but also: Non-Profit Institutions Serving Households (NPISHs) Government Not appropriate for salary setting for international staff (ACPAQ, see ICSC/68/R.9 para. 43) Montreal, 26 June 2009 Workshop on the Post Adjustment System 78 78

Latest developments for 2010 round Review of items and specifications New PAI structure with a reduced number of basic headings New basket of 26 countries for Out-of-Area Index (including some Group II duty stations) Review of the basket on agenda for ACPAQ 32nd session Re-design of the survey questionnaire Real-time comparisons with New York Increasing use of the Internet as a source of price data Possible modifications of the operational rules Montreal, 26 June 2009 Workshop on the Post Adjustment System 79 79

Latest developments for 2010 round The new basket of countries of the OA Index 1 United States 14 South Africa * 2 France 15 Japan 3 United Kingdom 16 Philippines * 4 Canada 17 Denmark 5 Germany 18 Brazil * 6 Italy 19 Austria 7 Australia 20 Sweden 8 Belgium 21 Russian Federation * 9 Switzerland 22 Thailand * 10 Spain 23 Senegal * 11 Kenya * 24 Hong Kong, China 12 India * 25 Nigeria * 13 Netherlands 26 Ghana * Countries sorted by weight in the basket; * Group II duty station Montreal, 26 June 2009 Workshop on the Post Adjustment System 80 80

PAC Review Cycle Date of review for NY: current practice Cost-of-living low Cost-of-living high 12-month rule 5% 4% 3% 2% 1% Jul 08 Aug 08 Sept 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 Jun 09 Jul 09 Aug 09 Sept 09 Oct 09 5% rule 5% 4% 3% 2% 1% Jul 08 Aug 08 Sept 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 Jun 09 Jul 09 Aug 09 Sept 09 Oct 09 Montreal, 26 June 2009 Workshop on the Post Adjustment System

PAC Review Cycle Elements of the PAC review process for NY US Dollar or US Dollarized Local CPI (BLS) External Rent Data (IOS) Changes medical premium (admin data) Changes pension contrib. (admin data) OA Index (CPIs and Exch. Rates) In-Area, excluding Housing Housing Medical component Pension component Out-of-Area component monitoring monthly annual annual annual monthly implementation 5% / 12-month rule Montreal, 26 June 2009 Workshop on the Post Adjustment System

Review Pensionable Remuneration scale PAC Review Cycle Elements of the PAC review process for NY NTP = Net Salary – Pension Contribution Net Salary Base salary PA Pension contribution PC NTP Net Take-home Pay Review Pensionable Remuneration scale triggers implementation 5% / 12-month rule Montreal, 26 June 2009 Workshop on the Post Adjustment System

PAC reviews cycles for Group I: Current Status 5% / 12-month rule, different dates Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 ü ü New York Geneva ü ü London ü ü Madrid ü ü Montreal ü ü Paris ü ü Rome ü ü Vienna ü ü Montreal, 26 June 2009 Workshop on the Post Adjustment System

Proposal 1: Align timing of PAC reviews of all Group I DSs with NY Option 1: Review at least once a year when NY gets reviewed, with possibility of independent reviews (5% rule) Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 New York ü ü Geneva ü ü ü London ü ü Madrid ü ü Montreal ü ü ü Paris ü ü Rome ü ü Vienna ü ü Montreal, 26 June 2009 Workshop on the Post Adjustment System

Proposal 1: Align timing of PAC reviews of all Group I DSs with NY Option 2: Review only once a year on the same date for all, with no independent reviews Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 New York ü ü Geneva ü ü London ü ü Madrid ü ü Montreal ü ü Paris ü ü Rome ü ü Vienna ü ü Montreal, 26 June 2009 Workshop on the Post Adjustment System

Proposal 1: Align timing of PAC reviews of all Group I DSs with NY Implications for duty stations Effect Option 1 Option 2 End of duty station-specific PAC reviews No Yes Simultaneous reductions in NTP owing to increased Pension Contribution Montreal, 26 June 2009 Workshop on the Post Adjustment System

Proposal 1: Align timing of PAC reviews of all Group I DSs with NY Financial implications On-going secretariat work load: the same Redesign the system: yes, minimal efforts Budget for secretariat operations: the same Budget for organizations: the same (time shifts) Potential for more frequent salary increases (under Option 1): Any time New York is reviewed When the 5% rule is applicable to the duty station Montreal, 26 June 2009 Workshop on the Post Adjustment System

Proposal 2: Shorten Survey Rounds Current settings Type of survey Headquarters Duty Station + Washington D.C. Group I Group II Place-to-place Every 5 years Every 4-5 years Every 1-3 years Housing Once in between (mid-round) consecutive PP surveys (for rental thresholds only) Once a year (for rental index and thresholds) Montreal, 26 June 2009 Workshop on the Post Adjustment System

Proposal 2: Shorten Survey Rounds Implications estimated under current settings with the only exception of duration of Survey Round Implications are primarily of two types: Financial: Direct costs Staff time (and cost) Note: some minor costs (printing, shipping/handling, additional IT, etc.) could not be estimated due to accounting structure) Logistical and organizational considerations Montreal, 26 June 2009 Workshop on the Post Adjustment System

Proposal 2: Shorten Survey Rounds Summary of financial implications (underestimates) Average per year Cost of 5 years of operations Difference (3-year vs. 5-year) 5-year Round 3-year Round Direct costs 124,807 162,300 624,033 811,500 187,467 Staff time 216,285 360,476 1,081,427 1,802,379 720,951 Total 341,092 522,776 1,705,460 2,613,879 908,418 Montreal, 26 June 2009 Workshop on the Post Adjustment System

Proposal 2: Shorten Survey Rounds Summary of implications On-going secretariat work load: slightly higher Additional staff requirements: 1 P and 0.5 GS staff over 5 years Redesign the system: yes, nearly twice as much as now Budget for secretariat operations: higher (+1M US$ over 5 years), including estimated cost of staff time Burden of keeping several IT systems running simultaneously Montreal, 26 June 2009 Workshop on the Post Adjustment System