Khaberni - The head of the Parliamentary Labor, Social Development, and Population Committee, Representative Andre Hawari, emphasized the importance of collaboration with the government, especially regarding the social security law, due to its direct impact on the lives of millions of Jordanians.
During the committee meeting he chaired today, Monday, to review the results of the actuarial study recently announced by the Social Security Corporation, Hawari said that there is no increase in subscription values in the new social security law, and there is no infringement on the acquired rights of the subscribers as per the law.
With the presence of the Minister of Labor Khaled Al-Bakkar, the Director General of the Social Security Corporation Jadallah Al-Khalaila, and officials from the institution, he referred to the meeting due to the importance of social security and its direct connection to the lives of a wide segment of citizens.
Al-Bakkar stated that the social security law stipulates conducting an actuarial study every three years to measure the financial sustainability of the institution and its ability to cover its insurance obligations.
He explained that the first break-even point would occur in 2030, which means that subscriptions will not suffice to cover the insurance expenses, but the situation is not considered dangerous if the number of subscribers increases and employees are maintained along with taking the necessary precautionary measures.
Al-Bakkar stressed that there will be no infringement on the value of subscriptions or the acquired rights and benefits of the employees under the current law, pointing to the institution's efforts to increase the retirement pensions for retirees whose pensions do not exceed 200 dinars, in a way that does not affect the financial sustainability of the institution.
He also referred to the direction towards a more independent social security institution through its leadership by a governor and two deputies for investment and insurance through amending the social security law, explaining that the decision to retire after completing 30 years of service with 360 subscriptions, in addition to expanding early retirement, had a negative impact on financial sustainability, stressing that early retirement should remain an exception rather than a rule, in execution of Prime Minister Jafar Hassan's directives to reconsider this file through a specialized committee.
Al-Bakkar clarified that the institution increased its contributions to a number of high financial return strategic projects, such as the national carrier project and some banks, and that the difference in the results of the current actuarial study from previous ones is due to changes in the assumptions adopted from one study to another.
From their side, the deputies emphasized the importance of launching a comprehensive national dialogue about any possible amendments to the social security law, especially since it affects the lives of employees and retirees, confirming the importance of the actuarial study in outlining the work of the Social Security Corporation for the coming years, and the necessity for legislative reforms to focus on maintaining the financial sustainability of the institution.
They affirmed that early retirement has caused injustice and grievance to several state employees, demanding to allow retired security personnel to work, especially those with low retirement salaries. On his part, Al-Bakkar
In turn, Al-Khalaila said that the issue of combining two salaries for retirees whose pensions are below a certain limit will be reconsidered, provided that they re-subscribe under the provisions of the Social Security law.
Al-Khalaila mentioned that there is significant insurance evasion being dealt with through intensifying surveillance on establishments, noting that including the informal sector under the provisions of social security would contribute additional revenues to the institution's treasury, reflecting positively on its budget and financial sustainability.
