|
Labour Minister and Chairman of the Board of Directors of the Social Security Corporation (SSC) Ghazi Shbeikat said the temporary Social Security Corporation Law was drafted to address the surging financial depletion the SSC suffers.
The law will address the depletion of the SSC's financial resources, especially in light of loopholes discovered in the pension system that need to be addressed quickly to ensure the sustainability of the SSC.
These loopholes need to be addressed to enable the corporation continue to provide protection and decent living conditions to its contributors when their services end, they get retired in cases of dangers, disabilities, death or others.
The minister stressed that the amended law is the first step to issue a new comprehensive legislation during the upcoming ordinary session of the Lower House and through the constitutional channels.
In a joint press conference, held at the SSC's headquarters with the participation of SSC Director General Dr. Omar Al Razzaz, the minister said the depletion of the corporation's financial resources is mainly due to the increase in early retirements and the lack of a ceiling on deductible salary. Currently, the SSC pays about JD240 million annually in the forms of early retirement pensions and contributions it loses in case the current early retirement conditions continue to be into force.
The minister stressed that the SSC's social responsibility made it ring the alarm regarding its financial situation that will be threatened in the future unless the pension system is addressed immediately and urgently so as to ensure the sustainability of the system to serve future generations.
He referred to the latest actuarial study carried out by the International Labour Organisation that showed the changes and developments witnessed at the SSC over the past years making its pension expenses to surge in accelerating way. The study revealed that the breakeven between the corporation's revenues and expenditure will be in the year 2016 and the break-even between the pension revenues and the investment returns with the total expenditures of the corporation will be in the year 2026. the corporation will run out of funds completely in the year 2036, according to the study.
For his part, SSC Director General Al Razzaz said the new amended law is an important step to be followed by other steps to formulate a modern law to start addressing the loopholes the SSC is facing.
The new law will enhance social equity between contributors and will cater for the interests of those with low and limited income. It will also allow the expansion of coverage to include all Jordanians.
To curb the depletion of the corporation's financial resources, which is estimated at JD20 million every month, the SSC, under the new amended law, has set a limit to the deductible salary by JD5,000.
The law stipulates that those whose deductible salaries are over JD5,000 by January 1, 2009 then the salary will be fixed at this ceiling and any increase in the salary will not be subjected to deduction.
The new law also curbs early retirements as those insured after October, 10, 2009 will not be allowed to resort to early retirement under the new law, which also stipulates canceling some articles that exclude some segments whose salaries are 60 per cent higher than the deductible salaries during the last five years.
Al Razzaz stressed that the new amendments will enable the SSC to continue to perform its duties towards the insured persons of the current generation and future generations, which will help it realise its objective in providing decent living for the insured under its umbrella upon the completion of other amendments that address the rest of the loopholes the SSC faces.
| 
