Transcript Actuarial Review of The National Social Security Fund

CAMBODIA
Social Protection Expenditure and
Performance Review (SPER)
Findings
Jean-Claude Hennicot
Consulting Actuary
Social Protection Expenditure
and Performance Review (SPER)
Background and objectives:
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SP Diagnostic Tool developed by ILO
 Comprehensive overview and assessment
of a country’s Social Protection system
Helps to identify coverage gaps and to
highlight critical policy issues
Improve knowledge base for policy making
SPER
Comprises the following parts:
 Review of country setting
• Demography, economy, and labour market
• Social indicators (e.g., poverty, fertility)
 Overview of SP system: schemes, benefits,
benefit levels, and governance
 Assessment of SP Financing: Expenditure and
funding source ( Social Budget)
 Assessment of Coverage and gaps
 ‘Performance’ of system
Challenges in Cambodia
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Availability of data
Many different actors
 No centralized database
 No standardized financial reporting
 Limited data for off-budget programmes
(mainly ODA and NGO-funded schemes)
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New Schemes / Provisions
Policy formulation still ongoing
(NSSF, NSSFC, NFV, NSPS, est.)
 Timeframes for Implementation?
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Demography
Source: NIS, Population Census 2008
Labour Market
Employment
Employment
Population and employment
Social Protection Coverage Map
Current State of Social Protection
• Public sector workers:
Mostly covered by NSSFC and NFV
• Private employees:
Labour law provisions and NSSF (work injury)
• Own-account workers (informal economy):
Only CBHI so far but low coverage
• The poor and vulnerable:
Mainly health care (HEFs) and child benefits
The National Social Security Fund
for Civil Servants (NSSFC)
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Established 2009
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Autonomous scheme (MoSVY supervision)
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Administration of social security benefits for
civil servants and their family dependents
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To become social insurance fund
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Annual expenditure: ~ 23 million US$ (2009)
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Beneficiaries: 67,500 pensioners and 4,500
cash benefits (2009)
The National Fund
for Veterans (NFV)
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Established 2010
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To become autonomous (MoSVY supervision)
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Administration of social security benefits for
war veterans, armed forces and the police
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Plan to introduce contributions
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Expenditure: ~ 19 million US$ (2010)
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Beneficiaries: 199,000 pensioners (2010)
The National Social Security Fund
for private sector workers (NSSF)
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Established 2008 by Royal Decree
( Social Security Law, 2002)
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Autonomous body under MoLVT supervision
(Tripartite board of directors)
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Work Injury branch implemented in 2008
(Expenditure ~ 0.6 million US$ in 2010)
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Social Health Insurance planned for 2012
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Pension branch planned for 2015
Labour Law provisions
for private sector workers
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Paid sick leave
( company regulations)
Paid maternity leave
 90 days at 50% of salary
Severance Pay (‘dismissal allowance’)
Minimum wage
(Garment sector only so far)
Employment Injury  employer liability
Social Assistance and Safety Nets
Main programmes:
 MoSVY social welfare services (for Orphans, Disabled,
Elderly, Poor, Disaster victims)
 Emergency Relief Aid (NCDM coordination)
 MoEYS social welfare programmes
- Scholarship programme for poor students
- School Feeding programme (WFP)
 MOH fee waiver provisions for the poor
 Health Equity Funds
 Public Works Programmes
 Vocational Training (TVET)
Health Care
Main Observations:
- High maternal and child mortality
 economic cost substantial
- High level of OOP expenditure
- Limited quality of care at public health facilities
- Private providers largely unregulated
- Total Health Expenditure: 860 million US$
(~ 7% of GDP or about 62$/capita/year)
Health Financing in Cambodia
Health Expenditure by source:
Social Health Protection
Main objectives:
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Ensure access to care for the poor
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Protect non-poor against catastrophic
health expenditures
 Risk pooling (health insurance)
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Improve quality of care
 Incentivize service delivery
Policy Development Framework
Outlined in several strategic policy documents:
• Rectangular Strategy, phase II
• National Strategic Development Plan, update 2009 – 2013
• Strategic Framework for Health Financing (2008 – 2015)
• Financial Sector Development Plan (2011)
• National Social Protection Strategy for the Poor and
Vulnerable (2011)
Policy Directions in Social Protection
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Extension of SP for the poor and vulnerable
 National Social Protection Strategy (2011)
- Extension of HEFs and CBDHI
- Cash transfers (Children, Elderly, Disabled)
- Public Works Programmes
- Vocational Training
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Extension of Social Security for formal sector workers
- Social Health Insurance (NSSF, NSSFC)
- Pensions (NSSF)
Critical Issues
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Financing for Social Protection
 ODA funding & national budget
 Fiscal Space
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Policy formulation
 choice and design of programmes
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Institutional framework
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Implementation arrangements
 optimize benefit delivery
Recommendations
• Continue efforts to implement SP strategies:
 National Health Financing Strategy, 2008 - 2015
 National Social Protection Strategy (NSPS)
• Continue development of institutionalized
arrangements and programmes
 Shift from ODA-funded projects to national systems
 Allocate funding through national budget
• Consider universal cash transfer schemes
• Strengthening of SP institutions
( develop human and institutional capacity)
• Ensure policy coordination and coherence
Thank you
Questions & comments
are welcome