## JUDGMENT No. 2016-1 (INTRODUCTION and accompanying summary)

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### Summary of the case and parties
- The Administrative Tribunal of the International Monetary Fund convened on March 14 and 15, 2016, composed of Judge Catherine M. O’Regan, President, and Judges Andrés Rigo Sureda and Francisco Orrego Vicuña, to adjudge the Application brought by Mr. Johann Prader, a retired participant in the Fund’s Staff Retirement Plan (SRP), against the International Monetary Fund.
- Applicant was represented by Mr. Willy Kiekens. Respondent was represented by Ms. Diana Benoit and Ms. Juliet Johnson, IMF Legal Department.
- Applicant challenged the SRP Administration Committee’s denial of his request to revoke a currency election under SRP Section 16.3 and sought rescission, payment in U.S. dollars until a valid future election, and settlement of exchange-rate differences for past payments.

### Core factual timeline (selected exact dates and actions)
- October 3, 2014: Memorandum “Your Estimated Staff Retirement Plan Benefits” provided to Applicant describing currency option timing in SRP Section 16.3(a).
- October 15, 2014: Applicant completed and signed the Pension Election Form.
- October 22, 2014: Applicant formally submitted the Pension Election Form electing 75 percent of his pension in Euros and 25 percent in U.S. dollars; Applicant’s signed acknowledgment repeated that the election “shall remain irrevocable unless I demonstrate to the Administration Committee that I have established a permanent residence in a different country for at least one year.”
- October 27, 2014: Secretary approved payment 75 percent in Euros and 25 percent in U.S. dollars.
- October 31, 2014: Applicant separated from the Fund.
- November 1, 2014: Pension became effective.
- November 24, 2014: Applicant filed a formal request with the SRP Administration Committee to void his October 22, 2014 election and change to 75 percent U.S.-$ and 25 percent Euro.
- November 28, 2014: First pension payment made in accordance with the October 22, 2014 currency election.
- November 29, 2014: Applicant repatriated.
- December 19, 2014 (letter dated December 23, 2014): SRP Administration Committee denied revocation.
- March 11 and March 18, 2015: Applicant filed Request for Review and supplemental memorandum.
- April 22, 2015: Committee denied review, stating the election “became irrevocable as of your pension effective date, November 1, 2014.”
- May 15, 2015: Applicant filed Application with the Administrative Tribunal.
- March 15, 2016: Tribunal judgment rendered in Washington, D.C.

### Parties’ principal contentions (condensed)
- Applicant:
  - The Committee erred because a valid election under SRP Section 16.3(a) requires: retired; pension effective; election made within 90 days after pension effective date; and residence (national or permanent resident) in the country of the currency at time of election.
  - The October 22, 2014 election was premature and therefore revocable.
  - The Fund failed to advise adequately about SRP rights and procedures.
  - Relief sought: rescission of denial of revocation; payment in U.S. dollars until a valid future election; settlement of exchange-rate differences for past payments; or equivalent compensation.
- Respondent:
  - The Committee properly denied revocation and acted in accordance with fair and reasonable procedures.
  - Local Currency Rules are a sound exercise of authority under SRP Section 7.2 to interpret and administer the Plan.
  - Currency elections may be made prior to the pension effective date and become irrevocable as of the pension effective date.
  - The Fund provided sufficient information and simulations to enable Applicant’s decision.

---

### SRP provisions and Local Currency Rules (key textual elements preserved)
- SRP Section 16.2: “Except pursuant to an election or as otherwise provided in the Plan, all payments from the Plan to participants, retired participants and beneficiaries shall be made in United States dollars.”
- SRP Section 16.3 structure and exact elements:
  - 16.3(a): A retired participant may, within 90 days after his pension becomes effective, elect to receive not less than 25 percent of his pension in the currency of the country in which he resides at the time of the election if (i) he is a national of that country or (ii) he furnishes evidence satisfactory to the Administration Committee that he has established permanent residence in that country. (Emphasis preserved.)
  - 16.3(b): An election made under subsection (a) will be irrevocable.
  - 16.3(c): Exchange rate based on the average exchange rate between the local currency and the U.S. dollar in the 5 years immediately preceding the pension effective date; payments commence with the first month following approval by the Administration Committee.
  - 16.3(d)/(e): Exceptions to irrevocability where permanent residence maintained for at least 12 months in another country or in cases of hardship.
- SRP Section 7.2(c): Administration Committee has authority to “make, establish and prescribe such rules, policies, procedures and forms for the administration of the Plan ... as shall not be contrary to the provisions hereof.”
- Local Currency Rules (December 2004) (selected exact language):
  - Section II: echoes SRP 16.3(a) eligibility and grants Secretary discretion to review eligibility.
  - Section III.A: “Participants may make an Election prior to the effective date of their pension or within 90 days following that effective date.” (Emphasis in source.)
  - Section III.B and Election Form: require written acknowledgment that election “shall remain irrevocable unless [the participant] demonstrate[s] to the Secretary ... that [he has] established a permanent residence in a different country for at least one year.”
  - Section VII: requires an exchange-rate simulation using the 5-year (60-month) average exchange rate at time of election and written acknowledgement.

---

### Tribunal analysis and findings

### Issue framed by the Tribunal
- Three questions presented:
  1. Did the SRP Administration Committee err in denying Applicant’s request to revoke his currency election?
  2. Alternatively, did the Fund fail in its obligation as employer to advise Applicant properly of his currency election rights under the SRP?
  3. Did the Committee take the contested decision in accordance with fair and reasonable procedures?
- Standard of review: Tribunal decides whether the Committee correctly interpreted and soundly applied the Plan to the facts and whether the decision was taken in accordance with fair and reasonable procedures; if in error, the Tribunal may rescind the decision.

### Timing and irrevocability findings (exact legal conclusions)
- The Tribunal found SRP Section 16.3(a) and the Local Currency Rules differ materially as to timing and prerequisites:
  - Plan: election “within 90 days after his pension becomes effective”; Local Currency Rules: election may be made “prior to the effective date of [the] pension or within 90 days following that effective date”.
  - Plan: election by a “retired participant”; Local Currency Rules: a participant may elect prior to retirement.
  - Plan: election for currency of the country in which the retired participant “resides at the time of the election”; Local Currency Rules: permit election based on intended repatriation evidenced by shipping documentation.
- It was not disputed that on October 22, 2014 Applicant had not yet retired nor repatriated.
- On a plain reading of Section 16.3(a), the October 22, 2014 election did not fall within the contemplation of Section 16.3(a); the Tribunal so concludes.
- Consequently, Section 16.3(b) did not apply to the October 22, 2014 election because that subsection applies only to elections made under Section 16.3(a).
- The Tribunal found no provision in the Plan, the Local Currency Rules, or elsewhere rendering an election made otherwise than in accordance with Section 16.3(a) irrevocable (either from the pension effective date or any other date).
- The Fund accepted that the October 22, 2014 election did not become irrevocable by operation of the acknowledgement on the Pension Election Form.
- The Tribunal concluded:
  - No legal basis supported the assertion that the October 22, 2014 election was irrevocable.
  - The Committee erred in deciding the election became irrevocable as of the pension effective date in these circumstances.
  - The Committee’s decision denying Applicant’s request to revoke his currency election was in error and must be rescinded.

### Employer advice and procedural fairness (findings)
- Employer advice:
  - Record shows Applicant received a personal overview memorandum, the Currency Rules, a pension simulation applying the 5-year average exchange rate, and had an individual meeting with an HR pension officer.
  - The possibility of changing or making a currency election after 12 months of permanent residence pursuant to SRP Section 16.3(d) was communicated in Plan, Rules, Handbook, and memorandum.
  - Tribunal concluded Applicant did not establish that the Fund failed to communicate the possibility of an election after 12 months of permanent residence.
  - Tribunal held it inappropriate for Fund officials to provide individualized financial advice to retiring SRP participants; retirees should seek independent financial advice.
  - Tribunal concluded the Fund did not fail in its duty as employer by not comparing the 5-year average exchange rate with the current exchange rate in the simulation provided.
  - Applicant’s subsidiary claim of failure to advise was denied.
- Procedural fairness:
  - Applicant contended denial of oral hearing and absence of formal employer intervention deprived him of fair procedures.
  - Respondent maintained Committee independence and that denial of oral hearing was consistent with Committee Rules.
  - Applicant accepted that Administrative Tribunal review would largely remedy any procedural failure.
  - Having decided in Applicant’s favor on the merits, the Tribunal did not reach the procedural complaints in detail.

---

### Remedies ordered (exact corrective measures and timelines)
- Tribunal rescinded the SRP Administration Committee’s decision denying Applicant’s request to revoke the October 22, 2014 currency election.
- Corrective pension allocation ordered (based on Applicant’s November 24, 2014 request):
  - Applicant’s pension shall be paid 75 percent in U.S. dollars and 25 percent in Euros, retroactively from his pension effective date of November 1, 2014, the exchange rate to be calculated as stipulated in SRP Section 16.3(c).
- Specific implementation deadlines (exact timelines preserved):
  1. The decision denying Mr. Prader’s request to revoke his October 22, 2014 currency election is rescinded.
  2. To correct effects of the rescission:
     - (a) Mr. Prader’s pension shall be paid 75 percent in U.S. dollars and 25 percent in Euros, retroactively from November 1, 2014, with exchange rate calculated under SRP Section 16.3(c);
     - (b) Within 30 days of the Fund’s receipt of this Judgment, the Fund shall ensure that Mr. Prader’s future pension payments be calculated and paid in accordance with paragraph 2(a);
     - (c) The Fund shall calculate the difference between the pension payments made to Mr. Prader in the period from November 1, 2014 until the 30th day after the Fund’s receipt of this Judgment, and the pension payments due to him in relation to that period as calculated in accordance with paragraph 2(a);
     - (d) Within 60 days of the Fund’s receipt of this Judgment, the Fund shall ensure that Mr. Prader is paid any difference, calculated in terms of paragraph 2(c), owing to him.
  3. Mr. Prader’s additional complaints are not sustained.
- Judgment was unanimous and signed by Catherine M. O’Regan, President; Andrés Rigo Sureda, Judge; Francisco Orrego Vicuña, Judge; with Celia Goldman, Registrar.

*Administrative Tribunal of the International Monetary Fund, JUDGMENT No. 2016-1 (Washington, D.C., March 15, 2016).*

### INTRODUCTION ...........................................................................................................

### INTRODUCTION

### Summary of the case and parties
- The Administrative Tribunal of the International Monetary Fund met on March 14 and 15, 2016, composed for this case of Judge Catherine M. O’Regan, President, and Judges Andrés Rigo Sureda and Francisco Orrego Vicuña, to adjudge the Application brought by Mr. Johann Prader, a retired participant in the Fund’s Staff Retirement Plan (SRP), against the International Monetary Fund.  
- Applicant was represented by Mr. Willy Kiekens. Respondent was represented by Ms. Diana Benoit and Ms. Juliet Johnson, IMF Legal Department.  
- Applicant challenges the SRP Administration Committee’s denial of his request to revoke a currency election under SRP Section 16.3 that part of his pension be paid in the currency of the country of which he is a national and to which he repatriated following retirement.

### Core factual posture and contested issues
- Applicant made a local currency election prior to his pension effective date and prior to resettling abroad, as permitted under Committee rules.  
- After the pension effective date but before repatriation and before receiving his first pension payment, Applicant sought to revoke the currency election. The Committee denied the revocation, on the grounds that the election was irrevocable as of the pension effective date except in circumstances not pertinent to Applicant’s case, and that Applicant had acknowledged the election’s irrevocability and that he understood its implications.  
- Applicant’s key legal claims:
  - The Committee’s decision was contrary to SRP Section 16.3 because, Applicant asserts, an election remains revocable until all conditions in SRP Section 16.3(a) are met, including that the participant has retired and resides in the country in whose currency he seeks payment.
  - The Fund failed in its obligation as employer to advise him properly of his currency election rights under the SRP.
  - The Committee failed to take the contested decision in accordance with fair and reasonable procedures.
- Applicant’s requested relief:
  - Rescission of the Committee’s decision denying revocation and confirmation that the revocation is valid;
  - An order requiring the Fund to pay Applicant’s full pension from its effective date onwards solely in U.S. dollars until a valid future currency election under SRP Section 16(d) is made;
  - An order that the Fund settle with Applicant, for past pension payments, the exchange rate difference between payments already made in his home country currency and the amount due in U.S. dollars;
  - Alternatively, equivalent relief as compensation for alleged failure to advise properly.

### Respondent’s position
- The Fund maintains that:
  - The Committee did not err in denying revocation and acted in accordance with fair and reasonable procedures.
  - The Committee’s rules governing currency election are not contrary to SRP Section 16.3 and represent a sound exercise of the Committee’s authority under SRP Section 7.2 to interpret and administer the Plan.
  - Applicant’s currency election became irrevocable as of the pension effective date and Applicant acknowledged the election’s irrevocability when made.
  - The Fund did not fail to provide sufficient information to enable Applicant to make pension decisions.

### Procedural timeline (selected)
- May 15, 2015: Applicant filed the Application with the Administrative Tribunal.
- May 20, 2015: Application supplemented and transmitted to Respondent.
- May 21, 2015: Registrar circulated a notice summarizing the issues within the Fund.
- July 6, 2015: Respondent filed its Answer.
- August 5, 2015: Applicant filed his Reply.
- September 8, 2015: Fund filed its Rejoinder.
- The Tribunal decided that oral proceedings would not be useful and did not hold them.

### Anonymity request
- Applicant requested anonymity under Rule XXII of the Tribunal’s Rules of Procedure, asserting privacy and potential embarrassment and press coverage concerns.
- Respondent opposed anonymity, arguing that protecting against embarrassment or press coverage does not demonstrate “good cause” and that the gravamen of the case is a challenge to a Fund rule.
- The Tribunal applied its precedents balancing the value of public justice against privacy interests and denied Applicant’s request for anonymity.

---

### FACTUAL BACKGROUND — Key Plan provisions and administrative framework
- The SRP is a contributory defined benefit pension plan under which “[e]xcept pursuant to an election or as otherwise provided in the Plan, all payments from the Plan to participants, retired participants and beneficiaries shall be made in United States dollars.” (SRP Section 16.2.)  
- SRP Section 16.3 (Election of Other Currency for Pensions) permits, under specified circumstances, that a pension may be paid in full or in part in the local currency of the country to which the participant retires, either as a national or as a permanent resident.
- SRP Section 16.3 structure and key textual elements:
  - 16.3(a): A retired participant may, within 90 days after his pension becomes effective, elect to receive not less than 25 percent of his pension in the currency of the country in which he resides at the time of the election if (i) he is a national of that country or (ii) he furnishes evidence satisfactory to the Administration Committee that he has established permanent residence in that country. (Emphasis preserved.)  
  - 16.3(b): An election made under subsection (a) will be irrevocable.
  - 16.3(c): The applicable exchange rate, in relation to any particular retiree, will be based on the average exchange rate between the local currency and the U.S. dollar in the 5 years immediately preceding the pension effective date.
  - 16.3(d) and 16.3(e): Provide exceptions to irrevocability where the retiree has maintained permanent residence for at least 12 months in a country other than the country in whose currency the pension is paid, or in cases of hardship.
- In December 2004 the SRP Administration Committee, pursuant to its authority under SRP Section 7.2(c) to “make, establish and prescribe such rules, policies, procedures and forms for the administration of the Plan [and] its interpretation,” adopted Rules for the Election of Currency for Pensions Under the Staff Retirement Plan (Local Currency Rules) to provide “practical operational guidance for the orderly implementation of the currency election provisions of the Plan,” and delegated to the Secretary authority to approve such elections.

---

*Administrative Tribunal of the International Monetary Fund, JUDGMENT No. 2016-1 (INTRODUCTION and accompanying procedural and factual summary).*

### Section 7.2(c) “. . . shall not be contrary to the provisions” of the Plan. (SRP Section 7.2 (c).)

### Section 7.2(c) “. . . shall not be contrary to the provisions” of the Plan. (SRP Section 7.2 (c).)

### Eligibility and scope of local currency elections
- The Local Currency Rules repeat the essential elements of SRP Section 16.3(a) for eligibility: a “Pensioner, may, within 90 days after his pension becomes effective, elect to receive not less than 25 percent of his pension in the currency of the country in which he resides at the time of the Election if (i) he is a national of that country or (ii) he furnishes evidence satisfactory to [the] Secretary of the Administration Committee that he has established permanent residence in that country.” (Local Currency Rules, Section II.)
- Sections IV and V of the Local Currency Rules provide that elections may be made by a “Pensioner, or prospective Pensioner” and require submission of “[u]sed tickets or boarding passes for the airline journey to the country of the currency being elected” or “[d]ocumentation of shipping of household goods consistent with the Pensioner’s, or prospective Pensioner’s, stated intention to resettle in the country for which he is making an Election.” (Local Currency Rules, Sections IV and V.)

### Timing of election: divergence between Plan text and Local Currency Rules
- SRP Section 16.3(a) sets timing in the terms “within ninety days after your pension becomes effective.”
- The Local Currency Rules state: “Participants may make an Election prior to the effective date of their pension or within 90 days following that effective date.” (Local Currency Rules, Section III. A.) (Emphasis added.)
- The Pension Election Form and the Local Currency Rules contain inconsistent phrasing: the Form and Section III. B of the Local Currency Rules refer to making an election “within 90 days of [the] pension effective date,” substituting “of” for “after,” and do not expressly mention the possibility of making an election “prior to” the pension effective date. (Local Currency Rules, Section III. B.)

### Form of election, acknowledgment, and exchange-rate simulation
- The Local Currency Rules require a “Form of Election” acknowledgment that a local currency election may result in payments “greater or less, at current exchange rates” than U.S. dollar payments and that the election “shall remain irrevocable unless [the participant] demonstrate[s] to the Secretary of the Administration Committee that [he has] established a permanent residence in a different country for at least one year.” (Local Currency Rules, Section III. B.)
- Section VII of the Local Currency Rules requires an exchange-rate simulation at the time of election: “At the time a Pensioner, or prospective Pensioner, makes his Election, a simulation using the 5-year (or 60-month) average exchange rate in effect prior to the actual or expected date of retirement, will be submitted for his review and acknowledgment.” The election must be accompanied by a “written acknowledgment (including email) of the established 60-month exchange rate and pension simulation.” (Local Currency Rules, Section VII.)

### Staff Retirement Plan Handbook alignment
- The Staff Retirement Plan Handbook repeats the “Timing of Election” language adopted by the SRP Administration Committee: “You may make this election prior to the effective date of your pension or within 90 days following the effective date. If the currency option is not exercised during this initial period, it cannot be exercised until permanent residence has been established and maintained for at least 12 months while retired.” (Staff Retirement Plan Handbook, pp. 23-24.)
- The Handbook states it is “not a legal document” and that “the Plan itself is the only document that determines the entitlement and the amount of benefits payable under or any rights created by the SRP.” (Staff Retirement Plan Handbook, p. 4.)

### Applicant’s election, documentation, and timeline
- On October 3, 2014, the Fund provided Applicant a memorandum “Your Estimated Staff Retirement Plan Benefits” describing currency option timing in the SRP Section 16.3(a) terms and explaining that conversion uses the average exchange rate over the 60 months prior to the effective date of pension. The memorandum noted elections are irrevocable except in three circumstances (change of permanent residence after 12 months, hardship, or election to increase local currency portion). (Memorandum to Applicant, October 3, 2014.)
- Applicant completed and signed the Pension Election Form on October 15, 2014 and formally submitted it on October 22, 2014, electing that 75 percent of his pension be paid in Euros and 25 percent in U.S. dollars. (Applicant’s Pension Election Form, submitted October 22, 2014.)
- The Pension Election Form included the required acknowledgment repeating that the election “could, in certain circumstances, result in payments which are greater or less, at current exchange rates, than the U.S. dollar pension payments” and that the election “shall remain irrevocable unless I demonstrate to the Administration Committee that I have established a permanent residence in a different country for at least one year.” (Applicant’s signed acknowledgment, October 22, 2014.)
- Chronology from the Secretary of the SRP Administration Committee records that on October 15, 2014 the Secretary told Applicant he had “90 days from his pension effective date to make an election,” that Applicant chose to proceed, and that a currency simulation would be sent. (Chronology by Secretary, October 15, 2014 summary.)
- The HR Officer provided Applicant a pension simulation using the 5-year average exchange rate for the 75 percent local currency portion; Applicant submitted relocation travel authorization and shipping documentation as evidence of intent to repatriate and emailed the required acknowledgment on October 21–22, 2014. (Email exchange October 21-22, 2014.)
- The Secretary approved payment 75 percent in Euros and 25 percent in U.S. dollars on October 27, 2014 and forwarded instructions to Finance. Applicant separated from the Fund on October 31, 2014; pension became effective on November 1, 2014; the first payment was scheduled for November 28, 2014 in accordance with SRP Section 4.7. (Authorization email October 27, 2014; SRP Section 4.7 timing.)

### Applicant’s revocation request and Committee response
- Applicant contacted the Secretary on November 21, 2014 seeking to revoke his currency election and to have 100 percent of the pension paid in U.S. dollars; Finance informed Applicant on November 24, 2014 that November pension payment instructions had already been set in motion. (Chronology and Finance contact, November 21–24, 2014.)
- Applicant filed a formal request with the SRP Administration Committee on November 24, 2014 to void his October 22, 2014 election and change to 75 percent U.S.-$ and 25 percent Euro. (Applicant email November 24, 2014.)
- Applicant’s first pension payment was made on November 28, 2014 in accordance with his October 22, 2014 currency election; Applicant repatriated on November 29, 2014. (Payment and repatriation dates.)
- On December 19, 2014 the SRP Administration Committee denied revocation, reasoning that (i) the Local Currency Rules “stipulate that the election is irrevocable, except in specific circumstances not present in [his] case (see Articles VI [Changing the Election Percentage] and XI [Hardship])” and (ii) Applicant had acknowledged understanding the rules in his October 22, 2014 email and Pension Election Form. (Letter from Secretary of SRP Administration Committee to Applicant, December 23, 2014.)

### Administrative review and Committee rationale
- Applicant filed a Request for Review under Rule VIII of the SRP Administration Committee’s Rules of Procedure on March 11, 2015 and supplemented it with counsel’s memorandum on March 18, 2015 seeking “cancelation of [Applicant]’s initial, preliminary, premature and erroneous currency option decision” and a hearing. (Applicant submissions March 11 and March 18, 2015.)
- On April 22, 2015 the Committee denied the review request, stating: “In accordance with the Rules for the Election of Currency for Pensions under the Staff Retirement Plan (SRP), your election became irrevocable as of your pension effective date, November 1, 2014.” The Committee reaffirmed Applicant’s acknowledgments and that the conditions for changing a local currency election (permanent residence in another country for 12 consecutive months or hardship) were not present. (Letter from Secretary of SRP Administration Committee to Applicant, April 22, 2015.)
- The Committee concluded that the Local Currency Rules “do not abridge the rights of Plan participants and are consistent with the provisions on currency election set forth in the Plan,” and interpreted the 90-day outer limit as setting an outer limit that “does not preclude an earlier election. If an election is made before the pension effective date, it has legal effect and becomes irrevocable on the pension effective date.” The Committee also justified the pension effective-date deadline on operational grounds for HRD and FIN to establish records and banking instructions. (Committee decision memorandum and letter.)

*Source: SRP Administration Committee documents, Local Currency Rules, Staff Retirement Plan Handbook, and related memoranda and correspondence summarized in j2016-1.*

### 42. The Committee also rejected Applicant’s assertion that the Fund has a duty to advise Plan

### j2016-1 - 42. The Committee also rejected Applicant’s assertion that the Fund has a duty to advise Plan

### SRP Administration Committee decision and process
- The Committee rejected Applicant’s assertion that the Fund has a duty to advise Plan participants as to the currency election that would be in their “best interest.”
- The Committee noted Applicant “had had an ‘individual meeting with an HR pension officer to discuss [his] pension benefits and the elections available to [him] in greater detail’” and that he was “provided with the necessary information to make an informed decision.”
- The Committee stated that making an exception to the Local Currency Rules in Applicant’s case would “result in inequity and unfairness to other Plan participants in prior cases.”
- The Committee denied Applicant’s request for an oral hearing.
- The Committee’s notification of results of its review exhausts the channels of review for purposes of filing an application with the Administrative Tribunal, in accordance with Rule X, para. 1(b), of the SRP Administration Committee’s Rules of Procedure.

### Filing with the Administrative Tribunal
- Applicant filed his Application with the Administrative Tribunal on May 15, 2015.
- Rule X (Exhaustion of Administrative Review), para. 1, provides that channels of administrative review are exhausted for filing an application with the Administrative Tribunal when, inter alia:
  - (a) three months have elapsed since an Application for review of a Decision was submitted to the Committee in accordance with Rule VIII, paragraph 1 and the results of the review have not been notified to the Applicant; or
  - (b) the Committee has notified the Applicant of the results of any review of a Decision, or its decision to decline to review a Decision; or
  - (c) the conditions set out in Article V, Section 3(c) of the Statute have been met.

### Applicant’s principal contentions
- The principal arguments presented by Applicant in his Application and Reply may be summarized as follows:
  1. The SRP Administration Committee erred in denying Applicant’s request to revoke his currency election. The Committee acted contrary to the provisions of the Plan because, at the time of the election, Applicant had not met the criteria prescribed by SRP Section 16.3(a) for making a valid election, namely:
     - the participant is retired;
     - the pension has become effective;
     - the election is made within 90 days after the pension has become effective; and,
     - at the time of the election, the retiree resides in a country other than the United States either as a national or as a permanent resident.
  - As a local currency election is irrevocable pursuant to Section 16.3(b) only when a valid election has been made under Section 16.3(a), Applicant’s currency election was “untimely, premature, not (yet) valid, and at best preliminary and revocable.”
  2. The Fund fell short of its obligation as employer to inform Applicant adequately about his complex rights under the SRP.
  3. The SRP Administration Committee failed to take its decision in accordance with fair and reasonable procedures.
  4. Applicant seeks as relief:
     - rescission of the Committee’s decision denying his request to revoke his currency election, and confirmation of the validity of the revocation;
     - an order that the Fund pay Applicant’s full pension from its effective date onwards solely in U.S. dollars until he has made at any future time a valid currency election under SRP Section 16(d); and
     - an order that the Fund settle with Applicant, for past pension payments, the exchange rate difference between the amounts already made in his home country currency and the amount due in U.S. dollars.
  - Alternatively, Applicant seeks essentially the same elements of relief to compensate him for damage caused by the Fund’s alleged failure to advise him properly about his pension rights.

### Respondent’s principal contentions
- The principal arguments presented by Respondent in its Answer and Rejoinder may be summarized as follows:
  1. The SRP Administration Committee did not err in denying Applicant’s request to revoke his currency election. That decision was fully in accord with the provisions of the Plan. The Local Currency Rules represent a sound exercise of the Committee’s authority to interpret the Plan, and it properly applied the Plan and the rules to Applicant’s case. The Committee’s determination that local currency elections may be effective prior to actual physical relocation is fully consistent with the SRP.
  2. The Fund provided Applicant with sufficient information to make an informed currency election decision.
  3. The SRP Administration Committee’s decision was taken in accordance with fair and reasonable procedures. Applicant was afforded due process in the consideration of his request.

### Relevant provisions of the Fund’s internal law — SRP Section 16.3 (Election of Other Currency for Pensions)
- SRP Section 16.3 governs election of payment of all or part of a pension in a currency other than U.S. dollars:
  - 16.3(a)
    - A retired participant may, within 90 days after his pension becomes effective, elect to receive not less than 25 percent of his pension in the currency of the country in which he resides at the time of the election if (i) he is a national of that country or (ii) he furnishes evidence satisfactory to the Administration Committee that he has established permanent residence in that country.
    - The election shall not be permitted to reduce any other currency that he will receive below 25 percent.
    - Thereafter, if he is receiving less than 100 percent of his pension in a currency other than United States dollars, a retired participant may, on not more than three occasions, elect to increase the portion of his pension paid in that currency, provided that it is the currency of the country of which he is a permanent resident, to (i) any higher percentage up to 75 percent or (ii) 100 percent.
    - The election shall also be available to a survivor entitled to a pension, under Section 4.6, 4.9 or 4.10 of the Plan.
  - 16.3(b)
    - Any election under subsection (a) shall be irrevocable, except as provided in subsection (d) below. An election under subsections (a) or (d) also applies to any pension to which a survivor of the person making the election may thereafter be entitled, unless that survivor elects otherwise in accordance with subsections (a) or (d).
  - 16.3(c)
    - The amount of a pension paid in a currency other than United States dollars under subsections (a) or (b) shall be the equivalent of the United States dollar amount of the pension determined on the basis of the average of the exchange rates between the United States dollar and the currency elected at the end of the 60 consecutive calendar months before the date on which such pension became effective.
    - Payments in the currency elected shall commence with the pension payment for the first month following the approval of election by the Administration Committee.
  - 16.3(d)
    - A person receiving a pension under the Plan may furnish evidence satisfactory to the Administration Committee that he has established and, after his pension became effective, has maintained permanent residence for at least 12 consecutive calendar months in a country other than the country in whose currency his pension is being paid, and that he intends to continue to maintain permanent residence in that other country.
    - Such a person may elect to receive thereafter not less than 25 percent of his pension in the currency of the country in which he has established his permanent residence.
    - The portion elected must equal or be greater than any portion that was previously paid in a currency other than United States dollars before the election.
    - The remaining portion of the pension, if any, shall continue to be paid in United States dollars, provided that any portion payable in dollars shall not be reduced below 25 percent.
    - Any such election shall be irrevocable, except that (i) the person concerned may further elect in accordance with the provisions of this subsection if, upon a finding by the Administration Committee, a new permanent residence has been established and maintained in another country; and (ii) the Administration Committee may, in a case of hardship demonstrated to its satisfaction, and after taking due account of the entire record of pension payments, permit a change from local currency to the United States dollar in such proportion consistent with this subsection as it may allow.
  - 16.3(e)
    - The amount of a pension paid in another currency under subsection (d) shall be the same amount as if payment of the pension in that currency had originally been elected under subsection (a) or, where applicable, under the provisions of the pension parity adjustment system that preceded the adoption of subsection (a).
    - Payments in the currency elected shall commence with the pension payment for the first month following approval of election by the Administration Committee.

### Relevant provisions of the Fund’s internal law — SRP Section 7.2 (Administration Committee)
- SRP Section 7.2 sets out the role and responsibilities of the SRP Administration Committee:
  - 7.2(a)
    - The Administration Committee shall be composed of five persons, each with an alternate, appointed by the Pension Committee upon nomination by the Managing Director of the Employer, to serve at the pleasure of the Pension Committee.
    - Each member and each alternate appointed after January 1, 1978 shall serve for a period of three years, subject to the pleasure of the Pension Committee, but may be reappointed.
    - The Pension Committee shall designate one of the members of the Administration Committee as chairman and another as vice chairman of the Administration Committee. The alternate of any member of the Administration Committee may act and vote in his stead.
  - 7.2(b)
    - The Administration Committee, subject to the supervision and control of the Pension Committee, shall be responsible for the administration of the Plan and its application to participants, former participants and persons claiming through them.
    - Except as may be herein otherwise expressly provided, the Administration Committee shall have the exclusive right to interpret the Plan, to determine whether any person is or was a staff member, participant or retired participant, to direct the employer to make disbursements from the Retirement Fund in payment of benefits under the Plan, to determine whether any person has a right to any benefit hereunder and, if so, the amount thereof, and to determine any question arising hereunder in connection with the administration of the Plan or its application to any person claiming any rights or benefits hereunder, and its decision or action in respect thereof shall be conclusive and binding upon all persons interested, subject to appeal in accordance with the procedures of the Administrative Tribunal.
    - Nothing herein shall prevent the Administration Committee, at its own discretion, from reconsidering a decision taken or from submitting a matter to the Pension Committee in accordance with subsection (c) of Section 7.1.
  - 7.2(c)
    - The Administration Committee, subject to the general authority of the Pension Committee, shall have authority to make, establish and prescribe such rules, policies, procedures and forms for the administration of the Plan, its interpretation, the exercise by individuals of rights or privileges hereunder, the disbursement of the Retirement Fund and the application of the Plan to individuals and the Employer as shall not be contrary to the provisions hereof.
  - 7.2(d)
    - The Administration Committee shall maintain accounts showing the fiscal transactions of the Plan, and shall keep in convenient form such data as may be necessary for actuarial valuations of the Plan.
    - The Administration Committee shall prepare annually a report showing in reasonable detail the assets and liabilities of the Plan and giving a brief account of the operation of the Plan for the past year. Such report shall be submitted to the Pension Committee, and a copy shall be on file at the headquarters of the Employer, where it shall be open to inspection by any participant or retired participant.
  - 7.2(e)
    - In any case where it shall be necessary to determine the part of any benefit under the Plan that is provided by the contributions of a participant or of the Employer, the Administration Committee, subject to any rules or orders of the Pension Committee with respect thereto, shall make such determination in such manner as it shall deem equitable.

### Rules for the Election of Currency for Pensions Under the Staff Retirement Plan (Local Currency Rules) (December 2004)
- The SRP Administration Committee adopted rules governing currency elections pursuant to SRP Section 16.3. Pertinent provisions include:
  - II. Eligibility
    - 1. A retired participant or any person receiving a pension from the Fund (a "Pensioner"), including a pension under SRP Section 4.6, 4.9 or 4.10 who has established permanent residence in a country other than the United States may make an election to receive payment of all or a portion of his pension in the currency of that country (an "Election") in accordance with Section 16.3 of the Plan. The Secretary of the Administration Committee shall review the eligibility of Pensioners who make that Election.
    - 2. As provided under Section 16.3(a) of the Plan, a Pensioner, may, within 90 days after his pension becomes effective, elect to receive not less than 25 percent of his pension in the currency of the country in which he resides at the time of the Election if (i) he is a national of that country or (ii) he furnishes evidence satisfactory to [the] Secretary of the Administration Committee that he has established permanent residence in that country.
    - 3. As provided under Section 16.3(d) of the Plan, a Pensioner may furnish evidence satisfactory to the Secretary of the Administration Committee that he has established and, after his pension became effective, has maintained permanent residen[ce] for at least 12 consecutive calendar months in a country other than the country in whose currency his pension is being paid.
    - 4. A recipient of benefits under Section 4.4.(b) of the Plan shall be ineligible to make an Election.
  - III. Process of Currency Election under [text continues in source]

*Source: SRP Administration Committee decision and relevant SRP provisions as provided in the content unit.*

### Section 16.3 of the Plan

### Section 16.3 of the Plan

### Timing of Election
- Participants may make an Election prior to the effective date of their pension or within 90 days following that effective date.
- Participants who elect a deferred pension may defer that Election until the pension commences.
- Subsequent Elections may only be made if a Pensioner has established a permanent residence for at least 12 consecutive months in the country of the currency being elected.
- If the Fund authorizes a Pensioner, or prospective Pensioner, to defer repatriation to his home country for a period of up to one year after his pension becomes effective, he may make the Election within 90 days prior to his departure from the United States, but the Election shall take effect as of the calendar month following the month in which his departure occurs.
- A national of the country for which the currency is elected within 90 days of his pension effective date shall provide evidence of repatriation to his home country as set forth in Section IV.
- If the first 90 days from the pension effective date lapsed, a Pensioner who wishes to make an Election must furnish evidence that he has established and maintained permanent residence for at least 12 consecutive calendar months in a country other than the country in whose currency his pension is being paid. The Election will be effective in the month following the month in which the Secretary of the Administration Committee approves the Election.

### Form of Election and Acknowledgment
- An Election under Section 16.3 shall be made by the Pensioner on the form provided by the Administration Committee "Election of Currency of Pension Payment" (Appendix 1).
- The form includes the following statement (verbatim excerpt):
  - "I acknowledge that I have made this election with full awareness that it could, in certain circumstances, result in payments which are greater or less, at current exchange rates, than the U.S. dollar payments I would have received under the Staff Retirement Plan had I not made this choice, depending on exchange rate changes and consumer price index changes; moreover, I make this election on behalf of any of my heirs, beneficiaries, or minor children who may be entitled to continuing benefits under that Plan. I recognize that this election shall remain irrevocable unless I demonstrate to the Secretary of the Administration Committee that I have established a permanent residence in a different country for at least one year"
- At the time of an Election, a simulation using the 5-year (or 60-month) average exchange rate in effect prior to the actual or expected date of retirement will be submitted for the Pensioner's review and acknowledgment.
- A written acknowledgment (including email) of the established 60-month exchange rate and pension simulation must be provided; the Pensioner will acknowledge that the actual amount of local currency is an estimate and may differ when the pension becomes effective.

### Notification to the Finance Department
- After approving the Election, the Secretary of the Administration Committee shall notify the Finance Department regarding the Pensioner's eligibility to receive pension payments and cost of living adjustments in such currency pursuant to Sections 16.3 and 4.11.
- Such payments and adjustments will be made beginning with the first pension payment (or monthly accrual of a pension under Section 4.5(b)) after the end of the calendar month in which the Election is approved.

### Proof of Repatriation (Section 16.3(a))
- A Pensioner, or prospective Pensioner, repatriating to his home country shall submit one of the following as evidence of residence in that country:
  - Used tickets or boarding passes for the airline journey to the country of the currency being elected; or
  - Documentation of shipping of household goods consistent with the Pensioner's, or prospective Pensioner's, stated intention to resettle in the country for which he is making an Election.
- The Secretary of the Administration Committee has the discretion to require additional evidence if deemed necessary.

### Proof of Permanent Residence
- Establishment of permanent residence for a local currency Election shall be based on evidence including (none of which is conclusive):
  1. The Pensioner's nationality;
  2. The Pensioner's statement of intent to the Administration Committee that the country will remain his permanent residence;
  3. The addresses for correspondence with the Pensioner and payments to him;
  4. Evidence of status as a resident under the tax or other laws of the country in question;
  5. Evidence of any ownership of real estate in the country in question;
  6. Evidence of the presence of any dependents or close relatives in the country in question.
- The Pensioner shall submit a form (Questionnaire and Evidence of Permanent Residence) together with proof of residence; the Secretary may require additional evidence.
- Upon approval of the Election, unless determined otherwise or following a Pensioner's request, payment will be made by electronic transfer to the Pensioner's bank account in the country recognized as his place of residence.

### Changing the Election Percentage
- The Election shall not be permitted to reduce any other currency that a Pensioner will receive below 25 percent.
- Thereafter, if a Pensioner is receiving less than 100 percent of his pension in a currency other than United States dollars, he may, on not more than three occasions, elect to increase the portion of his pension paid in that currency up to 50 percent, 75 percent or 100 percent, provided that it is the currency of the country of which he is a permanent resident.
- A Pensioner wishing to elect or increase a portion paid in a foreign currency must furnish evidence satisfactory to the Secretary that he has maintained a permanent residence in that country for at least 12 consecutive months. The Election will become effective in the month following the month in which the Secretary approves the Election.
- Any election is irrevocable, except that:
  - (i) the person may further elect upon a finding by the Secretary that a new permanent residence has been established and maintained in another country for at least 12 consecutive calendar months; and
  - (ii) the Administration Committee may, in case of hardship demonstrated to its satisfaction and after taking due account of the entire record of pension payments from the date of retirement in local currency and United States dollar, permit a change from local currency to the United States dollar.

### 60-Month Average Exchange Rate
- The amount of a pension paid in a currency other than the United States dollar shall be equivalent to the United States dollar amount of the pension determined on the basis of the average of the exchange rates between the United States dollar and the currency elected at the end of the 60 consecutive calendar months immediately prior to the date on which the initial pension became effective.
- Example timing note: a simulation done at the beginning of August for a September 1 retirement would be based on the 60 months through July 31; the guaranteed 60 months average will be based on the August 31 rate, which will not be available until mid-September.
- Except with regard to lump sum benefits, any maximum or minimum amounts in U.S. dollars specified in the Plan shall be converted into the elected currency at the rate applicable to the recipient's pension.
- Lump sum benefits (withdrawal and commutation payments) are always paid in U.S. Dollars.
- If data required for the application of Section 16.3(c) are unavailable, the Administration Committee shall determine the exchange rate to be used.

### Hardship
- In accordance with Section 16.3(d), the Administration Committee may allow a Pensioner who had retired abroad and elected local currency to revert to payment in U.S. dollars of some or the entire pension in the case of extreme hardship demonstrated to its satisfaction.

### Consideration of the Issues — Tribunal Review and Case Application
- The Application presents three issues:
  1. Did the SRP Administration Committee err in denying Applicant’s request to revoke his currency election?
  2. As an alternate ground for relief, did the Fund fail to fulfill its obligation as employer to advise Applicant properly of his currency election rights under the SRP?
  3. Did the Committee take the contested decision in accordance with fair and reasonable procedures?
- Standard of review:
  - The Administrative Tribunal does not review the Committee's decisions for abuse of discretion. Instead it decides whether the Committee correctly interpreted and soundly applied the Plan to the facts, and whether the decision was taken in accordance with fair and reasonable procedures.
  - If the Tribunal concludes the Committee’s decision was “in error,” it may rescind the decision.
- Core factual and legal dispute summarized:
  - Applicant contends a currency election remains revocable until all conditions in Section 16.3(a) are met: retired; pension effective; election made within 90 days after pension effective date; and at the time of election, retiree resides in a country other than the United States as a national or permanent resident.
  - Applicant’s timeline: currency election made on October 22, 2014; retired on October 31, 2014; pension became effective on November 1, 2014; first pension payment made on November 28, 2014; repatriated to home country on November 29, 2014; requested voiding the election on November 24, 2014.
  - Respondent maintains the Committee properly applied the Plan and Local Currency Rules, treating pre-retirement elections as allowable and becoming irrevocable once the pension effective date passed.
- Two legal questions identified by the Tribunal:
  1. Was the Applicant’s October 22, 2014 pre-pension-effective election an election made in terms of Section 16.3(a) of the SRP?
  2. If so, did the Committee err in deciding that the election was irrevocable?
- Tribunal observations:
  - SRP Section 16.3 and the Local Currency Rules differ as to permissible timing and prerequisites for making a currency election.
  - Section 16.3(a)’s reference to elections “within 90 days after his pension becomes effective” and to the “currency of the country in which [the retired participant] resides at the time of the election” suggests the period is intended to ensure the pensioner elects the currency of the country to which he actually retires.
  - Respondent argues that documentation for shipment of household effects is a sound proxy for intention to establish permanent residence and cites legislative history suggesting elections may be made prior to the pension effective date; the Tribunal finds the legislative history produced by the Fund is not conclusive on whether the Board intended to allow or prohibit elections prior to the pension effective date, given the text stating elections may be made “within 90 days after his pension becomes effective.”

*Section 16.3 of the Plan*

### 64. The Tribunal observes that it has not been called upon to pass on the validity of the Local

### j2016-1 - 64. The Tribunal observes that it has not been called upon to pass on the validity of the Local

### Irrevocability issue and scope of Tribunal review
- The Tribunal was asked to decide whether the Committee erred in holding irrevocable Applicant’s pre-retirement currency election when he sought to revoke it following his pension effective date but before fulfilling all criteria SRP Section 16.3(a) envisages as prerequisite to making a currency election.
- The Committee’s denial of Applicant’s request to revoke the election is the “administrative act” by which Applicant has been “adversely affect[ed]” within the meaning of Article II of the Statute.
- The Tribunal was not required to rule on the validity, lawfulness, or rationality of the Local Currency Rules themselves; the question was limited to whether the Committee erred in denying revocation.

### Legal hierarchy and applicable provisions
- Rules promulgated by the Committee pursuant to SRP Section 7.2(c “. . . shall not be contrary to the provisions” of the Plan; where conflict exists, the Plan governs.
- Section 16.3(a) of the Plan governs elections to receive part or all of a pension in a currency other than U.S. dollars.
- Section 16.3(b) provides that an election under subsection (a) shall be irrevocable.
- To determine irrevocability under Section 16.3(b), it must be ascertained:
  - (i) whether the election was made by a retiree;
  - (ii) within 90 days after the pension effective date; and
  - (iii) whether the retiree was both a national and a resident of the country of the specified local currency or a permanent resident of that country at the time the election was made.

### Differences between SRP Section 16.3(a) and the Local Currency Rules
- Key differences identified by the Tribunal:
  - (i) Plan provision: election to be made “within 90 days after [the] pension becomes effective”; Local Currency Rules: election may be made “prior to the effective date of [the] pension or within 90 days following that effective date”.
  - (ii) Plan provision: election made by a “retired participant”; Local Currency Rules: a participant may make the election prior to retirement.
  - (iii) Plan provision: election for the “currency of the country in which [the retired participant] resides at the time of the election”; Local Currency Rules: election for the currency of the country to which the participant intends to retire, evidenced by documentation of shipping of household goods.
- The Fund supplies the Pension Election Form with the instruction that it be returned prior to the pension effective date.

### Tribunal’s factual and legal findings on Applicant’s October 22, 2014 election
- It is not disputed that on October 22, 2014, Applicant had not yet retired, nor had he repatriated to his home country.
- On a plain reading of Section 16.3(a), Applicant’s election made on October 22, 2014 was not an election that fell within the contemplation of Section 16.3(a); the Tribunal so concludes.
- Consequently, Section 16.3(b) did not apply to the October 22, 2014 election because that subsection applies only to elections made under Section 16.3(a).

### Whether the election became irrevocable as of the pension effective date
- Applicant’s position: a currency election becomes irrevocable only when all of the conditions set out in Section 16.3(a) have been met.
- Respondent’s position (adopted by the Committee on review): a currency election becomes irrevocable as of the pension effective date. The Committee stated: “In accordance with the Rules for the Election of Currency for Pensions under the Staff Retirement Plan (SRP), your election became irrevocable as of your pension effective date, November 1, 2014.” (Letter from Secretary of SRP Administration Committee to Applicant, April 22, 2015.)
- The Committee’s initial decision (December 23, 2014) appeared to assume the election was irrevocable from the time it was made, without mentioning irrevocability as of the pension effective date.
- The Tribunal found no provision in the Plan, the Local Currency Rules, or elsewhere that renders an election made otherwise than in accordance with Section 16.3(a) irrevocable (either from the pension effective date or any other date).
- The Fund accepts that the October 22, 2014 election did not become irrevocable by operation of the acknowledgement on the Pension Election Form.
- The Tribunal concludes:
  - No legal basis was identified by the Fund to support the assertion that the October 22, 2014 election was irrevocable.
  - The Committee erred in deciding that the currency election became irrevocable as of the pension effective date in the circumstances of this case.
  - The Committee’s decision denying Applicant’s request to revoke his currency election was in error and must be rescinded.

### Employer’s obligation to advise on SRP currency election rights
- Applicant’s subsidiary claim: the Fund failed as employer to advise him properly of his rights under the Plan, leading to a “hasty and economically erroneous selection.” Specific complaints:
  - (i) the Fund failed to advise him of the possibility of making a local currency election pursuant to SRP Section 16.3(d) following 12 months of permanent residence in his home country; and
  - (ii) the Fund failed to draw attention to the difference between the 5-year average exchange rate (used to calculate local currency payments under Section 16.3(c)) and the current exchange rate.
- Respondent’s position: staff satisfied their duty of ordinary care and diligence (SRP Section 13.4) by providing a personal overview memorandum, a copy of the Currency Rules, and a simulation of the local currency election personalized to the retiree’s indicated choice.
- The record shows:
  - The possibility of changing or making a currency election after 12 months of permanent residence is stated in the Plan, the Local Currency Rules, the SRP Handbook, and the Memorandum “Your Estimated Staff Retirement Plan Benefits.”
  - The SRP Handbook states: “If the currency option is not exercised during this initial period, it cannot be exercised until permanent residence has been established and maintained for at least 12 months while retired.” (Staff Retirement Plan Handbook, p. 23.)
  - HR Officer provided Applicant with a pension simulation applying the 5-year average exchange rate to the local portion of his pension and compared it to payment fully in U.S. dollars.
  - Applicant had an individual meeting with an HR pension officer to discuss benefits and elections; Applicant does not dispute that such meeting took place.
- Tribunal conclusions regarding employer advice:
  - Applicant has not established that the Fund failed to communicate the possibility of making a currency election after 12 months of permanent residence pursuant to SRP Section 16.3(d).
  - It would be inappropriate for Fund officials to provide individualized financial advice to retiring SRP participants; retirees uncertain about options should seek independent financial advice.
  - The Fund did not fail in any duty as employer when it did not compare the 5-year average exchange rate with the current exchange rate in the simulation provided to Applicant.
  - Applicant’s subsidiary challenge that the Fund failed to advise him properly of his rights under the SRP is denied.

### Procedural fairness argument (beginning of analysis)
- Applicant contends absence of formal intervention by the Fund as employer and denial of oral argument prevented “full and free exchange of views” and a fully informed Committee decision.
- Applicant specifically contends the Committee wrongfully denied his request for an oral hearing pursuant to Rule VI, para. 1 of the Committee’s Rules of Procedure.
- (The source text continues analysis of procedural fairness beyond the provided excerpt.)

*The Tribunal (IMF Administrative Tribunal judgment).*

### 90. Respondent, for its part, maintains that the independence of the Committee from those

### j2016-1 - 90. Respondent, for its part, maintains that the independence of the Committee from those

### Procedural objections and Tribunal stance
- Respondent maintains that the independence of the Committee from Fund departments involved in the day-to-day administration of the SRP has been further enhanced since 2012 and that there is "no evidence that any Committee member did not act in accordance with his or her fiduciary duty to the Plan."
- Respondent defends the Committee’s denial of Applicant’s request for an oral hearing as not unfair or unreasonable and consistent with the Committee’s Rules of Procedure to decide on the basis of the written record.
- Applicant sought procedural relief both (a) as subsidiary reasons to reverse the contested decision and (b) to obtain Tribunal observations on fair procedures for future guidance of the Committee.
- Applicant acknowledged that proceedings before the Tribunal and full review by the Administrative Tribunal "may largely remedy the absence of fair and reasonable procedures before the Administration Committee."
- The Tribunal, noting Applicant’s acceptance that Administrative Tribunal review would largely remedy any procedural failure and having decided in Applicant’s favor on the merits, concluded it need not reach the procedural complaints. (See Ms. “J”, para. 171.)

### Merits: currency election under the SRP
- The Tribunal found Applicant succeeded on his principal claim: at the time Applicant submitted his October 22, 2014 currency election he had neither retired nor repatriated to the country of his currency election, and thus had not met essential criteria prescribed by SRP Section 16.3(a) for making a valid currency election under the Plan.
- Applicant applied to the Committee within the 90-day period in which a retiree is permitted to make a currency election pursuant to Section 16.3(a) to seek revocation of the earlier election.
- A currency election becomes irrevocable under Section 16.3(b) of the Plan only when a valid election has been made under Section 16.3(a).
- The Fund identified no other ground on which to hold Applicant’s currency election irrevocable; accordingly, the Tribunal concluded the Committee erred in denying Applicant’s request to revoke his currency election of October 22, 2014.
- The Tribunal did not sustain Applicant’s secondary claim that the Fund failed to advise him properly of his currency election rights under the SRP, given the record of the case.

### Remedies ordered by the Tribunal
- The Tribunal’s remedial authority is grounded in Article XIV, Section 1, of the Statute, which provides that if the Tribunal concludes an application challenging the legality of an individual decision is well-founded, it "shall prescribe the rescission of such decision and all other measures, whether involving the payment of money or otherwise, required to correct the effects of that decision."
- The Tribunal observed three categories of remedial powers in its jurisprudence: (i) rescission of the contested decision with measures to correct effects through monetary compensation or specific performance; (ii) compensation for procedural failure; and (iii) compensation for intangible injury where there may be no decision to rescind. (Ms. "GG" (No. 2), para. 444.)
- The Tribunal rescinded the SRP Administration Committee's decision denying Applicant’s request to revoke the October 22, 2014 currency election.

### Specific corrective measures and timelines
- The Tribunal set the corrective pension allocation based on Applicant’s November 24, 2014 request (which was within the 90-day period following Applicant’s pension effective date):
  - Applicant requested his pension be paid 75 percent in U.S. dollars and 25 percent in local currency on November 24, 2014.
  - The Tribunal ordered Applicant’s pension shall be paid 75 percent in U.S. dollars and 25 percent in his home country currency, consistent with his November 24, 2014 request.
  - Past pension payments shall be adjusted retroactively to the pension effective date of November 1, 2014 to give effect to this election.
- Specific orders:
  1. The decision denying Mr. Prader’s request to revoke his October 22, 2014 currency election is rescinded.
  2. To correct effects of the rescission:
     - (a) Mr. Prader’s pension shall be paid 75 percent in U.S. dollars and 25 percent in Euros, retroactively from his pension effective date of November 1, 2014, the exchange rate to be calculated as stipulated in SRP Section 16.3(c);
     - (b) Within 30 days of the Fund’s receipt of this Judgment, the Fund shall ensure that Mr. Prader’s future pension payments be calculated and paid in accordance with paragraph 2(a);
     - (c) The Fund shall calculate the difference between the pension payments made to Mr. Prader in the period from November 1, 2014 until the 30th day after the Fund’s receipt of this Judgment, and the pension payments due to him in relation to that period as calculated in accordance with paragraph 2(a);
     - (d) Within 60 days of the Fund’s receipt of this Judgment, the Fund shall ensure that Mr. Prader is paid any difference, calculated in terms of paragraph 2(c), owing to him.
  3. Mr. Prader’s additional complaints are not sustained.

### Judgment and signatories
- The Administrative Tribunal of the International Monetary Fund unanimously decided the orders above.
- Signatories included Catherine M. O’Regan, President; Andrés Rigo Sureda, Judge; Francisco Orrego Vicuña, Judge; with Celia Goldman, Registrar.
- Location and date recorded: Washington, D.C.; March 15, 2016.

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_Source: https://www.imf.org/-/media/files/imfat/j2016-1.pdf_