Thirteenth Actuarial Review of the Social Security and Redundancy Funds as of 31 December 2017

Description of the Project Strategy The conduct of the Thirteenth Actuarial Review of the Social Security and Redundancy Funds, as of 31 December 2017 is primarily aimed at assisting the DSS in ensuring the long-term financial sustainability of the DSS. The Review is mandated by statute and its report is a public document which serves to inform stakeholders of the current and projected financial status of the Fund. It follows international standards of actuarial practice requirements. The outcome of the project will focus on ensuring employers and workers covered for the different benefit branches covered by DSS can rely on a sustainable system in its comprehensive whole and at the level of each benefit branch. The Review will: ¿ Provide information to evaluate whether or not the DSS is operating on a sound financial basis and the Fund’s financial sustainability over a 60-year period, or any necessary period to secure the benefits provided by the scheme; ¿ Facilitate a better understanding of the factors that influence costs and the risks and thus contributes to informed policy positions related to both the finances of the DSS and recommended modifications to the DSS. Historically, the Employment injury benefits paid by the DSS have been low when compared to international standards. Due to the insignificant cost of these benefits, this branch has been financed on a pay-as-you go basis, even though this branch is also paying long-term benefits in case of disability and death. For the Employment injury branch, this Review will analyse: ¿ The coverage in terms of different categories of workers (employed, self-employed, apprentices, possibly by economic sector); ¿ The benefit adequacy in terms of the relevant conventions; ¿ Financing method: o Current liabilities compared to reserve, o Contribution rate adequacy based on terminal funding for long-term benefits, o Contingency reserves for short-term benefits. In formulating its recommendations, the ILO will adhere, as appropriate, to the International Actuarial Association (IAA) international actuarial practice standards for social security programmes2, the joint ILO-ISSA Actuarial Guidelines for Social Security3 and the standards of practice of the Caribbean Actuarial Association4. Due attention will be given to ensuring that the principles of gender equality in the domain of social security are taken into account. The analysis and projection of the financial position and financing requirements for the sustainability of the DSS benefit schemes will be based on age- and sex-disaggregated data for insured contributors as well as beneficiaries in line with ILO long-established actuarial methodology. It will hence contribute to the clarification of the outcomes in relation to gender dimensions at present as well as in the future.

Project symbol

DMA/18/01/DMA

Admin unit

DWT/CO-Port-of-Spain

Start date

05/11/2018

End date

31/12/2020

Total allocation

92202

Total expenditure

Status

Closed

69569

Development Partners

Dominica, Social Security

Country/Countries

Dominica

Outcomes

Outcome 8: Comprehensive and sustainable social protection for all