Actuarial consultancy, 2005-2008

The objective is to assist the Social Security Corporation (SSC) of Jordan and the Ministry of Labour, as the principal responsible government agency, in the formulation of options for the reform and strengthening of the social insurance system and in their implementation so as to ensure the long-term viability and financial sustainability of the scheme. The reforms will focus on improving perceived weaknesses in the structure of the scheme and the related legislation. The project consists of an agreement between the SSC and the ILO under which the latter will extend support to formulate recommendations for reform and to build up national capacities in the field of actuarial studies. It is envisaged that this process will involve close collaboration in the areas of financial and actuarial analysis to model reform alternatives and to provide regular consultation. This will both provide the opportunity and the necessity for the training and development of SSC and other national counterparts. The immediate objectives include: - The provision of actuarial advisory services that support the formulation of policy options and the requirements of the Article 15(a) of the Social Security law No. 19 of 2001. - The provision of advice of a financial and actuarial nature, as requested by the Corporation during the course of the project. - The build-up of national capacities in the field of social security financial, actuarial and statistical studies to support policy makers. The following outputs are proposed: (1) An ILO technical report on the actuarial review of the SSC under status quo provisions, tentatively set as of 31 December 2004, as required under Article 15(a) of the Social Security Law No. 19 of 2001, containing analysis and recommendations on, inter alia Old-age, invalidity and survivors' pensions (basic and supplementary); Short-term sickness and maternity cash benefits; Employment injury benefits; Coverage of the military; Other financial and actuarial matters related to the present schemes handled by the SSC. (2) A tailor-made training programme in social security statistics and actuarial analysis for the staff of the SSC on the basis of the ILO actuarial model developed for the SSC of Jordan (3) A joint ILO/SSC technical report on the actuarial review of the SSC, tentatively set as of 31 December 2007, containing the same elements of analysis and recommendations as mentioned under the above output (1). The objective is that the newly set up Actuarial Department of the SSC would assume most of the technical manipulations for this second official actuarial report to be submitted as per the requirement of Article 15(a) of the Social Security Law No. 19 of 2001. (4) Financial and actuarial advice, on an ad hoc basis, which the SSC may request during the course of the project, namely to assess the financial implications of possible alternative reform measures as long as project resources are sufficient to deliver such outputs.

Project symbol

JOR/05/01/JOR

Admin unit

SEC/SOC

Start date

01/09/2005

End date

20/06/2010

Total allocation

225473

Total expenditure

Status

Closed

225473

Development Partners

Jordan, Social Security Corporation

Country/Countries

Jordan

Outcomes

Social Security