BUJUMBURA March 30th (ABP) – The number of people retiring is increasing exponentially, resulting in a large reduction in the financial resources needed for the National Social Security Institute (INSS) to continue providing benefits to its insured persons. In addition, according to the results of a study commissioned by the INSS and conducted by an actuarial consultant, Mr. Iyad Hourani, the current contribution rates of 10% for civilian workers and 14.6% for the military are no longer sufficient to ensure the long-term financial viability of the INSS.
If nothing is done, by 2030, funds will be exhausted despite the significant increase in new contributors over the same period, the consultant says. Faced with this situation, the leaders of the INSS have just organized an exchange workshop with the social partners to analyze together the recovery plan of that institution. In that context, the consultant indicates that the objective of the actuarial evaluation is to analyze the possibility of offering improvements to the benefits offered to all the insured while ensuring the financial balance of the system.
Regarding precautionary measures, the consultant suggests that every effort should be made to reduce operating expenses by 20% to 10%.
In addition, the INSS is called on to invest its funds in sectors much more profitable than it does today. Referring to that study, the social partners share the consultant’s idea that the age of retirement should be increased from 60 to 65 for all workers. The consultant also recommends the establishment of accounting separate from the pension fund for civilians and military, a gradual increase over 3 to 5 years of the contribution rate of insured civilians from 10% to 15% and from 14.6% to 20% for the military and police. It will also be necessary to revise upwards the ceiling of remunerations subject to contributions.
The Director General of the INSS, Major-General Emmanuel Miburo, emphasized that “the appropriation of those results by all the concerned is a considerable step in the process of implementing the regime’s precautionary measures proposed by the “study”.
In the medium term, the consultant recommends to formulate an adequate funding policy which clearly defines the objectives to be achieved, in terms of financial sustainability.