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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

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

10. 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

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

12. 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

13. 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

14. 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

15. 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

16. 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
US$
Consolidation 2.33%
12-month rule
Montreal, 26 June 2009
Workshop on the Post Adjustment System

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

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

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

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

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

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

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

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

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

26. 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

27. 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

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

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

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

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

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

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

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

35. 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

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

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

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

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

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

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

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

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

44. 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

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

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

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

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

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

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

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

52. 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

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

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

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

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

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

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

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

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

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

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

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

64. 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

65. 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

66. 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

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

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

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

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

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

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

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

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

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

76. 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

77. 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

78. 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

79. 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

80. 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

81. 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

82. 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

83. 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

84. 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

85. 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

86. 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

87. 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

88. 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

89. 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

90. 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

91. 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

92. 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