Actuarial valuation for social security schemes with separation of benefits accounts

Actuarial valuation for social security schemes with focus on costs and separation of benefits accounts The project aims at delivering Actuarial Valuation for Social Security Schemes with Focus on Costs and Separation of Benefits Accounts assessing possibility of merging the five pension schemes to cater both public and private sector and the health insurance scheme supervised by the SSRA of Tanzania, recommending to the authority improvements of the social security system and developing the actuarial capacities within the SSRA and the six social security schemes. The objective of the project is to assess the long-tern viability and financial sustainability with Focus on Costs and Separation of Benefits Accounts of the six social security schemes, assess possibility of merging of the five pension schemes and recommend the SSRA appropriate measures for achieving a better, sustainable and efficient social security system. This project contributes to people receiving benefits from the six social security schemes as well as the current contributors and future beneficiaries of the schemes (indirect and ultimate beneficiaries) through better and sustainable pension and health care coverage and benefits. The project will also focus on the strengthening of internal actuarial capacities of the SSRA and the six social security schemes (direct and immediate beneficiaries) so that the national staff could become more involved in the production of future actuarial valuations and policy recommendations of the social security schemes. Immediate objective is that the SSRA improved the governance and actuarial information base with a view of establishing a sustainable and harmonized social security reform agenda. The SSRA is provided with the analysis of existing six social security schemes, namely five pension schemes and one health insurance scheme, and the recommended policy options based on the quantitative analysis and financial projections for the future. The option may include a possible merger and/or harmonization of benefits and financing of five pension schemes and a development of occupation tier for schemes with higher level of benefits. Recommendations will pay due attentions to the improvement of long-term financial sustainability as well as the coverage and the benefit adequacy of the schemes and to the improvements of institutional capacities of the schemes. The following outputs are proposed: 1. Actuarial valuation reports for six social security schemes as of 30 June 2013 are published and delivered. 2. Recommendations to further harmonize and improve the existing social security schemes are provided.. Policy options will be elaborated, after the full analysis of the current situation, firstly in consultations with SSRA staff and ask for the opinion of the SSRA Board represented by tripartite partners. Through the tripartite consultations in SSRA Board, policy options will reflect different opinions of tripartite partners and become more acceptable for necessary changes of the existing provisions. 3. A Training programme for of the actuarial staff of SSRA and the six social security schemes is implemented to transfer the ILO actuarial expertise. A tailor-made training programme in social security statistics and actuarial analysis for the staff of the SSRA and the six social security schemes on the basis of the ILO actuarial model developed specifically for each scheme. This output will include the delivery of a technical report on the review of the actuarial capacities of the SSRA and the six social security schemes, including an action plan and guidance for strengthening the education and formation of its actuarial staff. The indicators of these outputs are: Output 1 1.1 Availability of the published reports including findings and recommendations; 1.2 Numbers of copies of the reports disseminated to relevant agencies and ministries. These indicators can be verified by a distribution list of the reports. Output 2 2.1 Fin

Project symbol

URT/14/03/URT

Admin unit

SOCPRO

Start date

01/07/2014

End date

30/06/2017

Total allocation

570430

Total expenditure

Status

Closed

570430

Development Partners

Tanzania, Social Security Regulatory Authority

Country/Countries

United Republic of Tanzania

Outcomes

Creating and extending social protection floors