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MAIN FEATURES OF THE SCHEME
- The Scheme is contributory: It is financed from contributions by employers and employees
- It is a defined benefits social insurance scheme based on partial funding since contributions cannot pay for benefits in perpepuity
- Surplus funds not required now for benefits are invested
- The Scheme is portable; i.e credits are transferable from one place of work to another, concurrent contributions enhance benefits received at the oneset of contingencies
REGULATORY FRAMEWORK
First and current Law: 2001 (National Social Security and Insurance Trust), implemented in 2002
Type of programme: Social Insurance system
Coverage: All employees in the public and private sectors. The self-employed can be covered on a voluntory basis
Source of Funds: Insured person - 5% of earnings; Employer - 10% of payroll, The Self-employed contribute 15%; and Government - None
Membership: Membership is mandatory for all workers with an employer-employee relationship. It is mandatory for all employers to ensure that their workers are registered with the scheme. For the self-employed, membership is voluntary.
Financing: The scheme is financed from three sources:
- Contributions from Employers and Employees
- Investment Income; and
- Penalties and interest on delayed contributions
Contingencies: The three contingencies covered by the scheme are: old-age, invalidity and death.
Qualifying Conditions
Old-age pension: Age 60 (men and women) with at least 15 years of insurance coverage
Disability pension: Total incapacity for any work and younger than age 60 with at least 5 years of contributions of which 12 months contributions were paid in the three years preceding the onset of disability. The disability musst be assessed by a medical board.
Survivor Pension: The insured person met the qualifying conditions or was receiving an old-age pension or disability pension or had at least 5 years of contributions of which 12 months were paid in the 3 years preceding death