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Social Security Reforms Presentation to IRF

Social Security Reforms Presentation to IRF. 20 September 2010 Brenda Khunoane National Department of Social Development. Section 27 of SA Constitution. (1) Everyone has the right to have access to

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Social Security Reforms Presentation to IRF

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  1. Social Security Reforms Presentation to IRF 20 September 2010 Brenda Khunoane National Department of Social Development

  2. Section 27 of SA Constitution (1) Everyone has the right to have access to (c) Social security, including, if they are unable to support themselves and their dependants, appropriate social assistance. (2) The state must take reasonable legislative and other measures, within its available resources, to achieve the progressive realisation of these rights

  3. The Social Security Reform Agenda • Broadening social assistance grants • Contributory social insurance: • Mandatory retirement savings • Improved unemployment insurance • Disability & survivor benefits • Alignment of social security arrangements: RAF, COID, UIF • Social security governance and institutional restructuring • Fiscal and financial aspects • Retirement industry reform

  4. Broadening social assistance • Process already well under way • Age equalisation of state old age grant for men and women • Extension of Child Support Grant to age 18 • Any further expansion will be subject to availability of fiscal space • Priority is being given to job creation

  5. Contributory Social Insurance • Mandatory Retirement provision • Alignment of social security arrangements: RAF, COID, UIF • Social security governance and institutional restructuring • Fiscal and financial aspects • Retirement industry reform

  6. Mandatory Retirement Provision • State Old Age Grant universalised • Mandatory Pillar: • Retirement benefits • Death and disability benefits • Additional savings encouraged thru tax incentive

  7. Institutional Restructuring • Establish National Social Security Fund • Mandatory retirement benefits • Mandatory disability and survivor benefits • Alignment of benefits provided by RAF, COID and UIF • Regulatory Reform for retirement industry

  8. Fiscal and Financial considerations • Extent of government’s social assistance expenditure • Tax treatment of retirement contributions • Long term sustainability of retirement provision

  9. Regulatory Reform • Private retirement sector to remain integral to retirement provision in SA • Stricter governance requirements • Proactive supervision • Stronger consumer protection • Specialist Regulatory Authority

  10. Latest Developments • The Consolidated Government Document (CGD) is complete • There is agreement within government of the following strategic issues: • Benefit design for retirement and risk benefits • NSSF as statutory fund • Institutional framework • Fiscal and financial implications • Role of private retirement sector • Inter-Ministerial committee will table it to Cabinet for approval as consultation document

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