Khaberni - The president of the Economic and Social Council, Musa Shitiwi, said that early retirement is one of the factors that negatively impact the sustainability of the social security fund, emphasizing that regulating early retirement and restricting it to voluntary cases and risky professions is essential to enhance security sustainability.
Shitiwi added, during his appearance on "The Kingdom," that social security, in some cases, pays the early retiree amounts exceeding what he paid in subscriptions during his working period, which constitutes an increasing financial burden on the fund.
Shitiwi stated that the results of the national dialogue on what the social security law needs in terms of amendments, in light of the eleventh actuarial study, recommended widening the insurance coverage umbrella, regulating early retirement making it an exception, raising the minimum duration of actual subscription required for entitlement, and narrowing the gap between the age of early retirement and the age of old age retirement according to a formula that reflects the true actuarial cost.
Shitiwi explained that if these amendments to the social security law are enacted, the regulation of early retirement will become effective and obligatory according to the provisions of the law.
He pointed out that the recommendations related to the financial sustainability of the institution include gradually raising the old age retirement age, at its maximum, to 63 years for males and to 58 years for females, and offering supportive incentives to encourage participants to continue in the labor market.
He mentioned that the results of the dialogue recommended enhancing the freedom to continue working after the retirement age for women by maintaining mandatory coverage for the insured woman after reaching the age of (55), even if she has completed the conditions for old age retirement, should she wish to continue in the labor market until reaching the age of (60), without requiring the employer's approval.
It also called for reducing insurance evasion and enhancing compliance through a mix of incentives and tightened penalties, comprehensive linkage through digital compliance portals, developing the investment strategy for the social security fund, diversifying investments, and distributing risks geographically and sectorally.
He noted that the dialogue ended with formulating practical recommendations that align with the directions of His Majesty King Abdullah II through the economic modernization vision in building a social protection system, reflected in the government's executive program for the years: 2026-2029 in the social protection pathway.
About the outputs of the dialogue, Shitiwi stated that the recommendations came within three axes: governance, sustainability, and social protection and justice, as an integrated system.
* The organizational structure of the institution
Shitiwi explained that among the most prominent recommendations related to the governance axis and the organizational structure of the Social Security Corporation is the separation of the presidency of the board of directors of the institution from any ministerial position and the creation of an advanced leadership model represented in appointing a governor for the institution, similar to the central bank governor, to achieve leadership unity and decision-making stability or through an independent body, and revising the criteria for selecting social security representatives in the boards of companies in which the institution invests, adding that the dialogue recommended reorganizing the insurance council and enhancing the governance of the board of directors of the investment fund of social security.
It also recommended appointing three commissioners or deputies for the governor at the rank of secretary-general, one for insurance affairs, another for investment affairs, and the third for institutional services, to ensure a clear distribution of competencies, enhance accountability, and reduce conflicts of interest.
It called for revising the detailed and precise criteria for naming social security representatives in the boards of directors of companies in which the Social Security Corporation invests, reorganizing the insurance council either by abolishing it and transferring its powers to the board of directors or maintaining it within a stricter governance framework, in addition to enhancing the governance of the investment board of social security.
