The Director General of Social Security: Cancelling early retirement is impossible
The General Director of Social Security: Actuarial studies are built on assumptions, forecasts, and probabilities
The General Director of Social Security: We strive to preserve all rights and benefits for former members
The General Director of Social Security: We're exploring new ways and means to include the informal sector under the social security umbrella
The General Director of Social Security: We seek financial and administrative independence for the institution from the government
Khaberni - The General Director of the Social Security Corporation, Jad Allah Al-Khlaileh, said on Saturday that the breakeven point in the previous tenth actuarial study is in 2039, stating that it is based on specific assumptions related to the demographic and investment situations, in addition to the expectations of widening coverage.
Al-Khlaileh clarified that actuarial studies are built on assumptions, forecasts, and probabilities, pointing out that sometimes the economic, political, and social conditions can be contrary to these expectations, according to the kingdom.
He added that the previous actuarial study was very optimistic about expanding the coverage of the social security system, but economic and social conditions prevented this from being achieved.
The Social Security Corporation announced on Saturday the results of the 11th actuarial study, which showed that the insurance funds it manages are in a very good and sustainable financial condition, especially employment injury, maternity, and unemployment insurances, reflecting the financial strength of the institution and its ability to fulfill all its obligations towards members and retirees, based on insurance revenues, investment returns, and assets, with an emphasis on the importance of strengthening financial stability to ensure the ability to cover future obligations without the need to use assets or investment returns.
Al-Khlaileh confirmed that cancelling early retirement is impossible, as the institution strives to preserve all rights and benefits for former members, explaining that the utmost importance in the upcoming modifications lies in preserving the members’ rights, to ensure they receive their retirement wages according to the currently enforced law.
He mentioned that the institution is currently seeking, through amending existing coverage systems and future amendments to the social security law, to include all unorganized sectors under the provisions of the law.
He added that the institution has begun exploring new ways and means to include the informal sector under the social security umbrella, starting from non-standard work through the foundation it has created, affirming the ability to include all of the informal sector under the provisions of the social security law in cooperation with other official entities.
Al-Khlaileh emphasized that political, economic, and military conditions in the region have prevented the expansion of coverage under the social security umbrella, where investments were low, and the economic situation was heading towards "worsening". Thus, the efforts to expand the coverage were slight, and the search for enterprises to include them under the law required consideration of the economic activity of these enterprises, to ensure their continued functioning without making social security a barrier to their survival as an existing economic force.
He noted that there are cases of insurance evasion in the organized sector, pointing out that directorates and inspection departments will be energized in all branches of the institution, and they will operate through new mechanisms to expand coverage for all workers in both the organized and unorganized sectors, in cooperation with other relevant entities such as the Ministry of Labor.
Al-Khlaileh said that insurance evasion in the organized sectors relates to including workers with their real salaries and not covering some labor, while in the informal sector, there are legislative foundations that must govern this sector, and they will be agreed upon between the Social Security Public Institution and other concerned entities.
He mentioned that the applications sector is among the prominent unorganized sectors not covered under the social security umbrella.
Al-Khlaileh confirmed that it is difficult for the institution to use assets or investment returns to cover future obligations at the second breakeven point as stated in the 11th actuarial study, indicating that with efforts on increasing investments and expanding coverage, this point would be reached.
He also mentioned that the social security is striving for financial and administrative independence from the government, under a new management and board, as is the case with the Central Bank system.
He added that when the institution is independent in all dimensions and ways, there will be independence in the decisions it makes, and governance will be better and more precise.
Al-Khlaileh pointed out that the total retirement bill amounts to approximately 173 million dinars monthly.
