Common use of Social Security and Pension Fund Arrangements Clause in Contracts

Social Security and Pension Fund Arrangements. NPSA Holders must comply with any national social security obligations applicable to them, and UNDP takes no responsibility for ensuring that they do so. Such coverage shall be in place from signature of the NPSA by UNDP and the NPSA Holder. UNDP will pay NPSA Holders a lump sum amount in addition to their remuneration equivalent to 8.33% of their pay in lieu of pension fund and all other social security obligations. NPSA Holders are responsible to ensure that they enroll themselves into any scheme of their choice, and that the monthly payments are made directly between them and the service provider. NPSA Holders do not need to submit any proof or evidence of enrolment or payments. UNDP will not engage directly with any pension scheme service provider, nor will pay any service provider directly, unless it is not possible for individuals to make direct payments other than through the office. In countries where a national social security scheme exists, individuals under NPSA are expected to contribute directly to such a scheme. UNDP has no obligation to contribute directly to the national scheme, as it cannot be subject to any national scheme. By signing the NPSA, the NPSA Holder agrees to a ‘No Contest’ (attached as Annex 8) that confirms agreement to receive the pension contribution in the form of a lump sum.