Eighth Actuarial Valuation of the Social Security System administered by the Public Institution for Social Security of Kuwait (2004)

The project focuses on assisting the Government of Kuwait through The Public Institution for Social Security to ensure that its social security schemes operate on a sound financial and actuarial basis in the long-term and that it is providing an effective and efficient national measure of social protection in line with the provisions of the country’s Social Insurance Law of 1976, namely Parts III and V, and Law no. 69 of 1980. The actuarial valuation covered the main schemes serving the purpose of Kuwaiti nationals notably for old age, disability, sickness and death insurance. The immediate objective of this project is to provide a comprehensive actuarial and financial review of the social security system of Kuwait administered by The Public Institution for Social Security as per Article no. 10 of the Social Insurance Law. The ILO will provide to The Public Institution for Social Security a report on the Actuarial Valuations of The Public Institution for Social Security of Kuwait as of 2001 and 2004 (formally referring to the Eighth and Ninth Actuarial Valuations as required triennially) which will cover the following items: (a) A reconciliation of past demographic and financial experience since the Seventh Actuarial valuation. This should include a detailed review of the financial status of the scheme as of the valuation date. An in-depth review of the impact of the 2001 reforms will be included. (b) Development of a full set of assumptions and the base demographic and economic projection framework based on ILO methodology and models. ( c) Actuarial projections for each benefit branch of The Public Institution for Social Security providing detailed demographic and financial projections. (d) On the basis of actuarial projections, the actuarial review will develop the actuarial balance sheet and other actuarial results indicating the expected future outcome of the different benefit branches and special provisions. (e) Examination of the commutation approach, as required to be conducted every six years. (f) Other general recommendations based on the findings of the project actuary, namely in relation to the implementation of the employment injury insurance provisions of the Social Insurance Law, will be provided. Discussions will be held with representatives of The Public Institution for Social Security and social partners including the main employers’ and workers’ representatives. A special 1-day briefing session will be organised for the benefit of workers’ representatives to explain the background and functioning of the actuarial reviews and the broad issues involved in adopting a database and assumptions. The ILO will present its draft report to the Board of Directors of The Public Institution for Social Security.

Project symbol

KUW/04/01/KUW

Admin unit

SOC/FAS

Start date

01/09/2004

End date

30/06/2008

Total allocation

151763

Total expenditure

Status

Closed

151763

Development Partners

Kuwait, Ministry of Social Affairs and Labour

Country/Countries

Kuwait

Outcomes

Improve member State capacity to manage social security schemes and to implement policies focused on improving social security systems