Unified administrative structure for the National Organization of Social Security

Presided over by Egyptian Finance Minister, Dr. Samir Radwan, the National Organization of Social Security Board of Directors approved the planned budget of the social security funds for the fiscal year 2011/2012. The budget amounts to around LE 86.4 billion, including all amounts due to the NOSS funds by public bodies such as the Ministry of Finance and the National Investment Bank.

Dr. Radwan said this is the second time to prepare a planned budget for the National Organization of Social Security with its two funds. The previous system was confined to drawing up the accounts of the final budget. The new system targets more transparency in the performance of the two funds, raising efficiency and tightening control.

The expected volume of pensions and other social benefits to be cashed in the fiscal year 2011/2012 is about LE 56.5 billion, of which LE 26.4 billion is for the public and private fund pension beneficiaries, while LE 30.1 billion is for the government employee fund. As for the social security subscriptions and other payments expected to be collected in the next year, these are expected to amount to LE 34.2 billion, of which LE 19.7 billion comes from the government fund, and LE 14.3 billion from public & private fund. It is expected that the total revenues of the investments of the two funds will reach LE 26.6 billion.

The minister revealed that the public budget will commit LE 30.4 billion to be transferred to the Social Security Organization in aid for the two funds, in addition to revenues from the Ministry of Finance securities, LE 208 billion. In the new fiscal year, it is expected that the revenues of the two funds will achieve a surplus of around LE 27.5 billion.

Dr. Radwan emphasized the government’s concern to improve the incomes of pension beneficiaries and enhance the security services offered to them and to the insured individuals. The ministry is keen to complete its policy of unification of the structure of the two social security funds for the benefit of both government and private & public sector employees. The National Organization of Social Security board of directors has approved the unified structure in principle. The structure will be ratified in the next meeting of the board. The new structure will protect the rights of workers together with their financial benefits and employment ranks. It will also open before them the way for promotion as the new structure increases the number of supervisory posts.

In addition, the board reviewed the necessity of running an actuarial assessment of the performance of the funds and investigating the capability of the funds to bear the new increases of the pensions introduced last April, the public budget bearing the financial burden if the funds failed to do so.

On the other hand, the finance minister disclosed the first executive measures taken to set up the first specialized training institute for the employees of the Ministry of Finance. The Institute aims at honing the skills and capabilities of leaderships in the ministry and the social security sector. This will contribute to improving the services offered to the pension beneficiaries and insured individuals as well as catering for the great developments in the security service when the new social security law is enforced.