## md-contract-september-25-2019 ## Source details **Canonical URL:** [md-contract-september-25-2019](https://www.imf.org/-/media/files/news/press-release/2019/md-contract-september-25-2019.pdf) ## Other formats - [Markdown version](/-/media/files/news/press-release/2019/md-contract-september-25-2019.pdf.md) - [Structured JSON version](/-/media/files/news/press-release/2019/md-contract-september-25-2019.pdf.json) --- ### Appointment and duties - Appointment: Selected by the Executive Board to serve as Managing Director for a period of five years commencing on October 1, 2019. - Duties: Those set forth in the Articles of Agreement and supplemented by the By-Laws and Resolutions adopted by the Board of Governors and by the Rules and Regulations and decisions adopted by the Executive Board. ### Ethics, conduct, and conflicts of interest - Expected standards: Observe the highest standards of ethical conduct, consistent with integrity, impartiality and discretion; avoid even the appearance of impropriety. - Exclusive duty of loyalty to the Fund; avoid conflicts of interest or the appearance of such. - Participate in the ethics training program required for all Fund staff. Specific restrictions and obligations: - (a) Resignation from any prior public or private position is understood; will not, without Executive Board approval, apply for or accept any public or private employment or position, or engage in any business activity, whether compensated or not. - (b) May manage private investments and those of immediate family members to the extent management does not involve operation of a business or create a conflict or appearance of conflict; must provide the annual financial certification and disclosure required of senior (B-level) staff members. - (c) Will not accept any gift, fee or favor from any government or authority external to the Fund for services rendered during tenure; will not accept any honor, decoration or award during tenure without Executive Board approval. - (d) May be a member of a political party and contribute funds, but will not, in personal capacity, attend political party meetings, assume leadership roles in a party, or otherwise engage in partisan political activity. - (e) For a period of two years following end of service, shall recuse from involvement in or influence on matters related to dealings between future employer and the Fund, except where future employer is a member country or another intergovernmental organization. - Clarification: Consult with the Executive Board if clarification regarding requirements or application is needed. ### Compensation and allowances - (3)(a) Salary as Managing Director: $524,970, per annum. This salary shall be net of income taxes. - (3)(b) Representation allowance: $93,970 per annum, net of income taxes, payable in equal monthly installments, without certification or justification, to enable maintenance of appropriate scale of living and Fund representation; reimbursement for reasonable entertainment expenses directly related to Fund business. - (3)(c) Travel reimbursement: Per diem at the rate applicable to Executive Directors plus reasonable vouchered expenses not covered by the per diem, including all hotel expenses, for travel in the interest of the Fund. Includes travel and hotel expenses of spouse/partner for Annual Meetings held outside Washington, D.C., and when accompanying you on official travel if in Fund interest. - (3)(d) Adjustment: Both salary and representation allowance will be adjusted on July 1 of each year beginning in 2020 by the percentage increase in the Washington metropolitan-area Consumer Price Index for the twelve months ending the preceding May.1 Footnote: - 1 The U.S. Bureau of Labor Statistics Regional (Washington-Arlington-Alexandria DC-VA-MD-WV) Consumer Price Index for all Urban Consumers, or its equivalent replacement. ### Retirement plan, retirement supplement, and survivor benefits - (4)(a)(i) Participation: Will participate in the Staff Retirement Plan on the same basis as staff members, effective from appointment date. - (4)(a)(ii) Retirement supplement structure: - Retirement supplement equal to a percentage of the total pension payments (base pension) received each year under the Staff Retirement Plan, determined by completed years of service. - 10 percent of the value of the base pension upon completion of a first year of service. - Accrues in equal additional increments of 10 percent of the value of the base pension for each further year of completed service up to four years. - Increases to 70 percent of the value of the base pension upon completion of a fifth year of service. - Thereafter accrues in equal additional increments of 6 percent of value of the base pension for each additional year of completed service up to a maximum of 100 percent. - Rates for partial years of service interpolated on a pro-rata basis. - (4)(a)(iii) Payment: Retirement supplement payable in equal monthly installments along with Staff Retirement Plan monthly payments. If electing withdrawal benefit or commutation, retirement supplement equals the applicable percentage of such withdrawal benefit or commutation. Other elections/options under Staff Retirement Plan apply likewise to the retirement supplement. - (4)(b) Survivor supplement on predeceasing spouse/partner after leaving Fund: Fund will pay spouse/partner for life and children an annual retirement supplement equal to a percentage of the pension payments and children's benefits they will receive each year under Sections 4.10 and 4.9(c) respectively of the Staff Retirement Plan, determined according to length of service as in paragraph 4(a)(ii). - (4)(c) If death or disability occurs during period of service: Fund will pay surviving spouse/partner for life and children an annual supplemental retirement allowance equal to 100 percent of the pension payments and children's benefits they will receive each year under Sections 4.9 and 4.10, respectively, of the Staff Retirement Plan. Notes on longer service: - If selected to serve a third or subsequent term (i.e., beyond 10 years), the applicable percentage rate shall be subject to a decision by the Executive Board reflected in renewal contract, with an expected reduction in the applicable percentage rate. However, the overall amount of the benefit shall not be reduced to an amount below the 100% of the pension that would have been payable if service ended at the conclusion of its tenth year. ### Leave, travel class, and benefits parity - Entitlements: Reasonable vacation; in personnel policy matters including home leave, benefits equivalent to those applying to Executive Directors shall, except as otherwise provided, be applicable. - Travel class: Official Fund business travel, appointment and separation travel (and that of eligible family members) shall be in first class. - Financial arrangements equivalent to those in the Staff Handbook at General Administrative Order No. 6, Chapter 6.04 shall be available. ### Termination, resignation, and separation allowance - (6)(a) Termination: Executive Board free to terminate connection with the Fund at any time. - Resignation: If desiring to resign, three months' advance notice required; Executive Board may waive all or part of this period. - (6)(b) Separation allowance conditions: - Entitlement: At end of term(s), or if service is terminated by the Executive Board after at least two years of service, or if resign after at least two years, will be paid a separation allowance equal to a percentage of the salary paid during the last year of service, according to length of service as indicated in Annex I. - Reductions: Separation allowance reduced by amount of retirement supplement paid for the period covering the first year following separation. Further reduced by amount of any non-taxable income, and by two-thirds of any taxable income, received from regular and continuous employment of not less than six months’ duration during the year following end of service. - Adjustments: All payments subject to necessary adjustments, including recovery for overpayments, at the end of the first year. - Tax treatment: Separation allowance net of income tax in same manner as salary. Definition: - Regular and continuous employment: Full- or part-time performance of services other than on an “ad hoc” or sporadic basis; e.g., services for a specified number of days or hours per week are regular, whereas consultantships, directorships, lectures or similar services on an “as-needed” basis are not. Continuous employment of not less than six months’ duration means uninterrupted employment or series of commitments of at least six months during a reference year. Annex I — Rates for separation allowance (applicable percentage rate applied against total salary paid during last year of employment; rates for partial years interpolated pro-rated): - Years of Completed Service as Managing Director — Applicable Percentage Rate - 1 or less 0% - 2 50% - 3 60% - 4 70% - 5 80% - 6 84% - 7 88% - 8 92% - 9 96% - 10 100% ### Performance feedback and public disclosure - Performance feedback: Annual confidential and informal performance feedback process between the Managing Director and Executive Directors; through the Managing Director, feedback on Deputy Managing Directors' performance. - Public disclosure: Upon acceptance of these understandings, this letter will be publicly disclosed by the Fund. *md-contract-september-25-2019* --- _Source: https://www.imf.org/-/media/files/news/press-release/2019/md-contract-september-25-2019.pdf_