Transcript Social Security Programs - Institute of Retirement Funds

Social Security Programs
SADC versus EAC.
Robert Oketch
Divisional Director
EAC and SADC COUNTRIES
EAC
SADC
Kenya
Uganda
Tanzania
Burundi
Rwanda
South Africa
Swaziland
Tanzania
Seychelles
Lesotho
Mozambique
Botswana
Democratic Republic of Congo (DRC)
Angola
Madagascar
Malawi
Mauritius
Namibia
Zambia
Zimbabwe
Rationale for EAC vs SADC
Common protocols within SADC and EAC regions independently
Common themes in both regions
 Harmonise socio and economic policies within respective regions,
Promotion of trade amongst partner states,
Harmonise customs and tax practices,
Long term goal of monetary union,
Facilitate free movement of citizens of partner states,
Free labour movement (immediate in case EAC but progressively in case
of SADC)
Social security rights and portability hence central theme
Expansion of integration beyond SADC implies link to EAC
Relevant Social Security Articles
SADC adopted Code on Social Security in line with Charter of
Fundamental Social Rights in SADC; including
Article 2: Principles
Solidarity and redistribution; Variable geometry (a member state may move
faster than others on adoption),Multi-actor (state, social security institutions,
private sector but state maintains responsibility),
Article 4: Rights
Everyone has right to social security in line with code; at least equal to ILO
minimum standards per convention 102 of 1952,
Articles 5 and 6: Access to social assistance, social allowances and services on
a needs basis; adequate social insurance mechanisms for income protection
Other Articles: Access to healthcare; no gender discrimination , maternity
benefits in line with ILO minimum; death lump sums and annuity survivor benefits,
universal old age benefits, unemployment risks, occupational injuries, disabilities,
protection of children (foster care, adoptions, orphans),Migrant workers;
monitoring
Relevant Social Security Articles
EAC adopted Common market protocol in 2010 and set free movement
of persons and labour within EAC.
Article 13:
Allows access to social security of host country in line with existing
legislation,
No specific guidance at inter government level
Social Security Annexure still under negotiation
ECASSA has proposals that it aims will be incorporated in the Annexure
SADC articles (unlike EAC articles) have the effect of prescribing
minimum protection package in line with socio-economic status of each
country but no provision on levels and timeframe to achievement.
Access to essential healthcare, safety work environments, and collaboration
on health,
Income security to children
Poverty alleviation( for unemployed and the poor),
Income security ( for the elderly and disabled),
Mandatory social insurance schemes
Relative per GDP per capita( USD):2011
Assume Per capita GPD proxy for affordability in terms of budget allocations
Average per capita GDP much higher within SADC than EAC
Source: United Nations population division/ World factbook, 2011 (CIA 2011)
Actual Systems :EAC (ISSA :April 2011)
Old age,
Disability
and
Survivor
Sickness
and
Maternity
(Cash)
Sickness
and
Maternity
(Cash/Care)
Work
Injury
Unemplment
Family
Allowances
Kenya
Y : ee/er
5%/5%
Y: er
Y: Ins Hosp:
ee
Y:Ins: er
N
N
Uganda
Y:ee/er
5%/10%
N
N
Y:ins:er
N
N
Tanzania
Y: ee/er
10%/10%
Y: ee/er
Y: ee/er
Y: ee/er
N
N
Burundi
Y : ee/er
4%/6%
Y : er
Y :er
Y: er
3%
N
Y : er
Y:ee/er
3%/3%
Y :er
N
Y: er
2%
N
N
Rwanda
Actual Systems :SADC (selected states)
Old age,
Disability
and
Survivor
Sickness
Sickness
and
and
Maternity Maternity
(Cash)
(Cash/Care)
Work
Injury
Unempl
-ment
Family
Allowances
Mauritius
Y B: G
Y ee/er
6%/10.5%
Y: er
Y: Hosp: G
Y:NIns: er
Y: ee/G
1%/bal
Y:G MT
S Africa
Y B:G MT
Y:Dis:G MT
Y:ee/er
Y:Hosp:G
Y:Nins:er
Y:ee/er
1%/1%
Y:G MT
Tanzania
Y: ee/er
10%/10%
Y: ee/er
Y: ee/er
Y: ee/er
N
N
Swaziland
Y B: G MT
Y : ee/er
5%/5%
Y : er
Y :er
Y: ins:er
N
N
Actual Systems :SADC (selected states)
Old age,
Disability
and
Survivor
Botswana
Madagascar
Malawi
Seychelles
Zambia
Sickness
Sickness
and
and
Maternity Maternity
(Cash)
(Cash/Care)
Work
Injury
Unempl
Family
-ment Allowances
Y B: G
Y: er
Y: Hosp: G
Y:NIns: er
N
Y:G MT
Y:ee/er
1%/9.5%
Y:er
Y:er
Y:Nins:er
N
Y:er MT
(n law)
N
N
N
Y: ins/er
N
N
Y B:G
Y:ee/er
2.5%/20%
Y:er
Y:Hosp:G
NHPlan
Y:Nins:er
Y
Y:G
Y : ee/er
5%/5%
N
Y :Hosp:G
Y: Nins:er
N
N
EAC Vs SADC
Other 6 SADC states provide combined benefit packages below those by
Seychelles but higher than Malawi
No EAC state provides an old age Basic Pension funded by the state as opposed
to 6 states in SADC. Within SADC, the level of this pension is very varied ( generous
in some high per capita GDP countries like Seychelles and modest in others such
as Swaziland)
Only Seychelles and Botswana have universal benefits ( not means tested)
Virtually all SADC countries with high per capita GDP have Basic State Pension
No unemployment benefits and Family allowance benefits (social assistance
based) within EAC. Family allowance programs more common within SADC on a
means tested basis. Within EAC, there are several cash transfer programs on pilot
basis e.g OPCT in Kenya.
A number of SADC states operate national insurance mechanisms for work
injuries. Within EAC , in all cases where benefit is provided, the private insurance
model is used and contribution risks transferred to employers.
Yaounde Tripartite Declaration on Social
Protection Floor: As Benchmark
As adopted by 47 African member states of ILO
Priority on policies and initiatives to extend coverage to those who
have none,
Adoption of convention 102( minimum social security benefits)
Governments and local partners to undertake decisive steps for
extension of social security coverage(horizontal –national protection
floor and vertical-higher levels of social security meeting the
minimum standards to as many people as possible),
Basic set of social security guarantees( healthcare to all; income
security to children in line with defined national poverty line to
facilitate nutrition, education and care; target the vulnerable( women,
migrant workers, informal workers; those affected by HIV/AIDS) who
are unable to earn sufficient income on labour market to enjoy
minimum incomes through social assistance, transfers or
employment guarantee schemes
Yaounde Tripartite Declaration on Social
protection Floor: As Benchmark
As adopted by 47 African member states of ILO
All residents in old age and with disabilities enjoy income
protection at least at the nationally defined poverty line
ILO to provide strategic guidelines and provide plan of action to
enable actualisation of adoptions with the support of AU, national ,
regional and international employers, world agencies such as world
bank and IMF, ISSA and global civil society movements
SADC programs (for SA and few other countries) are
significantly ahead of EAC programs in moving towards
Yaounde adoptions
SADC: Family Allowances Trends
(from SASSA statistics)
Impact of expansion of family grants
Significant growth in coverage for family allowances especially on child
support grants ( which have highest impact: at least 22% growth in
recipients since February 2009 i.e over 1.5 million).
Increased coverage of the aged and disabled
Deliberate policy to extend age of child recipients to 18 (child support)
Increased school registrations and attendance,
Increased health as better nutrition,
Income support to Poverty alleviation( for absolute poor),
Expenditure on grants not exceeded 2% of GDP
Long term projections show sustainability ( expected gradual decline in
numbers of recipients)
Is there Justification to use experience to support rapid implementation
of similar programs in SADC and beyond ? (Varied geometry?)
Basic Social protection Floor: Is it
affordable?
ILO study on selected 7 African and 5 Asian countries( 2008 by
Krzysztof Hagemejer)
Package:
Universal old age and disability (30% GDP per capita – (0.6%-1.5%)
of GDP),
Basic child benefits (15% of GDP per capita:max of 0.5USD per day)1.2%-3.6% of GDP,
Universal access to essential healthcare( based on Namibia and
thailand experience), - 1.5%-5.5%
Social assistance/100 day employment scheme-benefit set at 30%
GPD per capita- 0.3%-0.8%
Possible to structure program at between 3%-4% of GDP
MUST be costed for each country(fiscal/demographic trends/labour
markets): Costing
sustainability
to
include
long
term
projections
to
ensure
ECASSA: East and Central Africa Social
Security Association
Established in 2007 as non-partisan, non-profit making
organisation
Members are institutions involved in one or more aspects of
social security within EAC ( mostly parastatal entities)
Aims:
Promote delivery of quality social security services in EAC,
Encourage joint research on social security topics in EAC,
Facilitate social security awareness and training in the region,
Establish contacts and encourage information exchange and
experiences amongst members, and
Co-operate with Governments, regional and international
organisations and other stakeholders in promoting social
development in the region
Promote awareness and training in EAC region, including
maintaining a experts database
ECASSA: Bujumbura workshop (Jan 2011)
Held on 27th-28th January 2011 and following declarations
made in light of 4 year experience of ECASSA initiatives
ECASSA secretariat to be made ISSA’s focal point in
relation to EAC region
Resolutions for EAC:
Governments to create/strengthen enabling institutions to
widen coverage scope as part of achieving united nations
millennium development goals. AU to follow up actions,
Harmonize legal provisions to guarantee migrant workers
basic minimum benefits across the region,
Member states to commit to an agreed minimum % of GDP
towards extending social protection coverage and set
minimum entitlement levels,
Member states commit to make laws that make it mandatory
for employers with 5 or more staff to set up occupational
schemes or register onto an umbrella scheme
ECASSA: Bujumbura workshop (Jan 2011)
Resolutions for EAC (continued):
Add provision within Social development protocol to compel
member states to issue progress reports on extension of coverage,
Adoption of best practice approach in constitution of Boards for
institutions responsible for delivering social protection,
Recommended Study on viability of a Regional Advisory Team to
monitor and recommend improvements in social protection
administration in the region,
Resolutions to be upgraded to agenda items at relevant intergovernmental meetings of the African Union,
All governments within the region to provide update reports on
resolutions during the next workshop to be held in January 2012
ECASSA secretariat to establish country progress scorecard on
resolutions,
Endorsement of October 2010 Yaounde Tripartite Declaration on
implementation of Social protection Floor and November 2010
Khartoum Declaration of African Ministers in charge of Social
development.
Challenges: EAC and SADC
Coverage:
Limited to formal employment (exclude Basic programs)
Self employed (not covered or on voluntary basis: low take ups)
Informal sectors( bigger issue in EAC as growing rapidly)
Adequacy of benefits:
Low in several countries (exclude supplementary cover)
Low contributions/ earnings limits
Inefficient administration platforms/governance/preservation
inequity
Fragmented benefit structures:
Generous
public
service
schemes/separate
schemes/work injury and other compensation schemes
occupatioal
Moving from Policy/Articles- Legislation- Implementation:
Monitoring mechanisms and Political will to actualize programs
END
?