Khaberni -The Minister of Labor, who is also the chairman of the board of the Public Institution for Social Security, Khaled Al-Bakkar, said that the ultimate goal we aim for is the financial and actuarial sustainability of the institution so that it can serve as a major insurance umbrella protecting the rights of participants. He emphasized the importance of the institution's continued operation to serve current and future generations, explaining that the institution conducts its actuarial study every three years in accordance with its law, and we are about to announce the results of the eleventh study in the coming period with full transparency and clarity.
He added, while receiving the president and members of the Center Parties Union Parliamentary Bloc at the institution's headquarters, that the actuarial study has not yet finalized its figures precisely and fully, and there is a review of the assumptions and data required by the study. Upon finalizing the results, the House of Representatives will be the first to review them, aiming to prolong the first breakeven point between revenues and expenditures as long as possible.
Al-Bakkar appreciated the visit of the Center Parties Bloc members represented by its president, Engineer Zuhair Al-Khashman, expressing their keenness and interest in learning about the major challenges facing the institution. He affirmed the importance of openness and collaboration with the Parliament, in both its Senate and House components, especially regarding legislative and regulatory matters.
He noted that social security and social insurance funds worldwide are periodically reassessed in terms of their financial position based on timelines set by their laws, to produce proposals and recommendations on measures that can be taken to extend the breakeven point as far into the future as possible. He added that the institution aims to extend these breakeven points according to the outcomes and recommendations included in the actuarial study, indicating that there is ample time to implement legislative reforms to improve the financial position of the institution without indefinitely waiting for their application to reflect positively on its financial center.
Al-Bakkar briefed the president and members of the Center Parties Bloc on the investment policy pursued by the Social Security Investment Fund, its investment areas, and the projects the fund invests in, along with future directions aimed at achieving high investment returns with low risk levels, emphasizing the government's commitment to the financial and administrative autonomy of the institution.
In turn, Jadallah Al-Khalayleh, the Acting General Manager of the Public Institution for Social Security, noted that the observations and proposals made by the members of the parliamentary bloc were extremely important and require amendments to the regulations, instructions, bases, and procedures, clarifying that the continuity of the institution's mission, both now and in the future, is built on increasing the number of participants and maximizing the institution's investments to achieve the highest possible financial return.
Al-Khalayleh explained that early retirement imposes additional costs on the institution and negatively affects the labor market, as well as has adverse effects on retirees due to their early retirement with fewer years of service, which negatively reflects on the value of their pension. He added that the institution's perception of early retirement has shifted towards continuing in the labor market to allocate a higher retirement pension, and the institution will fundamentally address this issue and reprogram it to avoid imbalance between revenues and expenditures.
Al-Khalayleh also highlighted that for the first time since its inception, the institution has allowed indebted establishments to pay off their debts with a zero percent interest rate, extending this decision until the end of the current year 2025, and for tourism establishments until the end of June next year 2026, with very suitable repayment periods, as the institution recognizes the importance of providing facilities that benefit all parties and consider the economic conditions of establishments.
Regarding the electronic services provided by the institution, Al-Khalayleh mentioned that the institution began automating its services since 2020, with (95%) of its services currently provided electronically to its audience. Additional electronic services are in the process of being launched, together with the continuous development of these services in partnership with the Ministry of Digital Economy and Entrepreneurship. He added that the institution is fully coordinating with the Ministry of Labor to provide social protection for the informal labor sector, explaining that the institution's board of directors recently approved the executive instructions to include workers in flexible employment of all types and forms, thus including them under the protection of the social security umbrella.
In turn, the president of the Central Parties Bloc, MP Zuhair Al-Khashman, stressed that the Social Security Institution is one of the prominent pillars of economic and social stability in Jordan, due to its vital role in insuring citizens and ensuring a decent life for them.
Al-Khashman said that the financial challenges facing the social security require radical solutions and close cooperation between the House of Representatives, the government, and the institution's board of directors, to maintain its sustainability and ensure its ability to fulfill its national role towards current and future generations.
He called for the development of a comprehensive plan that contributes to delaying reaching the "first financial breakeven point," ensuring the fund's continuity and achieving a balance between financial sustainability and not imposing additional costs on citizens or affecting their retirement incomes.
He also emphasized the importance of strategic investments that achieve safe and real returns, contributing to improving the financial position of the institution and enhancing its ability to meet its future obligations.
The deputies Jihad Abboy, Jamal Qamoh, Mu'taz Abu Roman, Ali Al-Ghazawi, Khaled Al-Massamer, Suleiman Al-Zaben, and Ayman Al-Badadwa expressed their commitment, along with all Jordanians, to the continuity of the Social Security Institution and to enhancing its national role as a fundamental pillar in the social protection system.
The deputies affirmed that the sustainability of social security is a shared national responsibility that requires collective action to protect it, emphasizing the importance of revitalizing its role in supporting the national economy through diversifying its investments and directing them towards major national strategic projects.
In conclusion, the spokesperson for the bloc, MP Jihad Abboy, clarified that the bloc is closely following this vital issue with great interest and supports all reform efforts that enhance transparency and efficiency in managing the institution's funds, and ensure fairness in distributing benefits among participants.
Abboy also reviewed the most prominent issues and proposals raised by the bloc, which included expanding the social protection umbrella to include workers in the informal labor market, accelerating the digital transformation in all institution services, addressing early retirement, comprehensive health insurance, enhancing institutional governance, and cooperating with the private sector to amicably settle financial entitlements to reduce the financial burdens on companies.
