Social Security Reforms

1. Social Security Reforms Paper presented by Vimbai Mushongera Zimbabwe Congress Of Trade Unions

2. Presentation outline • Background • Introduction • UN Declaration 1948- 22 &25 • ILO Social security convention • Social security status • WHO Standards • Proposed reforms • Recommendations • conclusion

3. Background • ZCTU was formed in 1981, 28th of February • It is a membership driven organization • The Congress is composed of thirty five affiliates with a total membership of more than four hundred thousand workers • Has organised informal economy workers rural & urban based 1.25 Million- Zimbabwe Chamber of Informal Economy Assoc -MOU

4. Introduction • Article 22 of the Universal Declaration states: Everyone, as member of society, has a right to social security. • ILO Conventions • 102/1952 Social Security Minimum standards • 118/1962 Equality of treatment • 121/1964 Employment Injury Benefits • 128/1967 Invalidity, Old Age survivors benefits • 130/1969 Medical care , Sickness Benefits • 157/1982 Maintenance of Social Security • 168/1988 Employment promotion& protection • 182/ 1985 Child Labour • 183/ 2000 Maternity Protection • 189/1998 Job Creation in small size • ILO Recommendation 169 – Social Protection as cornerstone to transformation of IE activities • WHO • UNICEF

5. EXISTING ARRANGEMENTS • NSSA • National Aids Council • Private Pension Schemes • Insurance Schemes • Private Medical Aid Schemes • Housing Cooperatives • Employment Creation & Micro- Credit Schemes • Informal arrangements • Funeral Plans • Traditional and cultural

6. GAPS WITH EXISTING SCHEMES • Low pension payouts • Does not support Low Cost housing scheme facilities to contributors • Excludes medical aid cover • Has been politicised • Lacks transparency in investment portfolios • Has not been subjected to regular annual audit • NSSA Act • Pensions & Provident Fund Acts • Weak National Policy Framework • No social Protection Floor –Not Sustainable

7. ZCTU’S VIEWS • Need to undertake a an imperial study of sustainable Social Protection Needs for all workers • There is also need to de –mystify Actuarial Sciences & medical aid • A clear distinction between benefits given to those injured at work and the pensioned off • Investments should be targeted at benefiting contributing members • The need to extend social protection to informal economy & rural workers as a means of transforming the precarious activities • Recognising informal work & rural work = work=labour act. • Recognise the bilateral and tripartite structures for Social Dialogue

8. Social Security Convention 102/52 • It covers the following: • - medical care • - sickness benefits • - unemployment benefits • - old age benefits • - employment injury benefits • - family benefits • - maternity benefits • - invalidity benefits • - survivors’ benefits

9. 10 Basic Principles in Pensions • Universal protection • (2) Right to benefits • (3) Protection against • Right to decentwork • (4) Incomesecurity • (5) Actuarialequivalencebetween contributions and benefits • (6) Guarantee of minimum return • (7) Genderequity • (8) Stable financing • (9) Fiscal responsibility • (10) State responsibility

10. Social security status The current social security systems in Zimbabwe have failed to address the question of social security protection, calls for a need to come up with a local strategy that would address the aspects of social protection floor, a concept which tries to provide a logical and coherent framework for the core content of the basic social rights even in times of crises

11. Proposed Reforms • Adequate social protection for all drawing on basic social protection floor as endorsed by the 98th session of the ILC as part of the global jobs pact • Promotion of the global jobs pact including the social protection floor • Need for the advancement of social and employment policies

12. How could Social Security Standards be fostered • Universal access to a basic social benefit package was never codified in any ILO social security Convention. Thus, a new mechanism could complement Convention No. 102 and the other social security Conventions to ensure that social security standards provide the best guidance to its member States for the establishment of a basic benefit package (social protection floor) and help countries, once the package has been established, to move towards more comprehensive social security protection, including a higher level of income security in relation to the contingencies, as well as improved medical care benefits, as laid down in Convention No. 102 and the other up-to-date social security Conventions.

13. Global Jobs Pact(ILC 2009) Requests countries that do not yet have extensive social security to build “adequate social protection for all, drawing on a basic social protection floor, including: • Access to health care , • Income security for the elderly and persons with disabilities, • Child benefits, and • Income security combined with public employment guarantee schemes for the unemployed and the working poor”

14. Recommendations • Call for a stakeholders conference • Research into what other Countries have done in the area of social security • Research into the policies and legal framework . • The surplus of contributions to NSSA should be given back to the Contributors so that they invest it in projects of their choice • Need for workers to take control of their pensions

15. Conclusion • Social security is a right for all • Benefits should be spread beyond contributors and seek to redress the imbalance in standards of living . • Health Insurance should not be through additional contributions by workers • A call to review the payouts on retirement is a must.

16. THANK YOU!