Wednesday, October 8, 2008

why does UN guarantee health for its workers?

What business does the UN have for taking on the obligation of health care for ever for its workers?
This is an expensive giveaway that should not be part of a political body funded by many nations.

United Nations Faces Billions in Retiree Health Care Obligations Wednesday, October 08, 2008 By George Russell * E-Mail * Print * Share: * * * * * * The United Nations is staring at a multi-billion-dollar shortfall in unfunded health insurance obligations to past and present employees, a gaping financial deficit that has been growing rapidly while the U.N. dithered for the past five years. According to internal documents examined by FOX News, the U.N. has roughly $2.4 billion in unpaid retirement health insurance obligations for its staff alone, as of the end of 2007. When the sprawling U.N. system of programs and organizations around the world is thrown in, the total could be more than $4.9 billion, as tallied in a March 2007 report. Click here to see the total. Not all parts of the U.N. universe are equally affected by the health insurance crisis. The $5 billion United Nations Development Program, for example, had a liability of roughly $466 million at the end of 2007, but has since funded more than half of it. At the United Nations High Commissioner for Refugees, the liability hit was $308 million, at a time when the agency's global expenditures have been rapidly increasing. The U.N.'s health insurance deficit is similar to problems that have threatened to crush private sector organizations. U.S. automakers, which granted gold-plated pension deals to their retiring employees years ago, are still struggling to fund those payments, even as American car sales have dwindled. So far, the U.N. has not made up its mind what to do about the retirement health insurance issue. The main reason: the ugly realization that it will either have to ask member states who already fund its operations to increase their funding, or force staffers who pay 8 percent of their current salaries toward health care costs, to cough up vastly more than they already do. Or perhaps some variation on those two. In an effort to begin to get the mammoth deficit under control, the U.N. has raised the number of years of service employees must put in before qualifying for the lifetime retirement health insurance benefit from five years to 10. In some of the financial scenarios that the U.N.'s top bureaucrats have been examining for years in order to deal with the issue, the money required to level the health insurance mountain runs to hundreds of millions of additional dollars per year — for decades. And at a time of global economic meltdown and financial turmoil, there is no guarantee that U.N. member states will be willing to bail out the world body. Meantime, the problem continues to compound, while the U.N. Secretariat doles out roughly $98 million every two years (the U.N. has a biennial budget cycle) to fund in pay-as-you-go health-care funding for its current pensioners — similar to the way the U.S. handles its massive Social Security deficit. At the same time, U.N. management is scrambling for ways to lower the staggering bill, or perhaps continues to kick the problem down the road, as it already has done for years. Without a fix, the total gap is likely to become even more unmanageable, and taking it off the books even more expensive than it already is. The mammoth unfunded retirement health insurance problem is once again on the agenda of the United Nations General Assembly this month, and U.N. Secretary General Ban Ki-moon is expected to come up with answers. According to a spokesman for Ban's office, an updated report on the problem and proposed solutions "will be issued shortly." According to a variety of U.N. internal documents examined by FOX News, various solutions have been on the table since 2003

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