BUJUMBURA March 28th (ABP) – The National Social Security Institute (INSS), in collaboration with the government, organized in Bujumbura City Council at the Nile Source Hotel on Tuesday March 26, 2019, an exchange workshop on the results from actuarial study of the pension plans and occupational risks it manages.
In his occasional speech, the Minister of Human Rights, Social Affairs and Gender, Mr. Martin Nivyabandi, immediately recalled that the government places in good position the strengthening of existing social security organizations, with the objective of ensuring the financial balance between the charges and the durability of the services. Indeed, he said, by improving the service provided to its insured persons with better benefits, the INSS contributes to raising the standard of living of a section of the people through the achievement of social justice which is a source of social peace. In that regard, he continued to say, the motto of the International Social Security Association (ISSA) states that “there is no lasting peace without social justice, there is no social justice without social Security”.
Previously, the General Director of the INSS, Major-General Emmanuel Miburo, had indicated that a technical analysis of the situation of the regime unfortunately reveals an imbalance of the pension branch, as a result of the strong pressure of retirements and inadequate funding of the pension branch by active insured persons.
In addition, the benefits paid to insured persons remain modest with regard to the cost of living. Referring to the study carried out by the actuarial consultant, the INSS Director General indicated that if nothing is done as soon as possible, the funds of the pension scheme will be completely exhausted by 2030.
As far as difficulties are concerned, the participants in the workshop learned that the government owes the INSS an indebtedness of more than 39 billion BIF as at December 31, 2016. In addition, the operating expenses of the INSS, estimated at 20%, are deemed to be very high by the social partners.
To do this, they propose that there be remedial measures. With that in mind, the social partners propose, in particular, to harmonize the age of retirement from 60 to 65, to proceed with the resumption of the annual wages and to raise the level of the minimum pension. Other important measures, including the separation of social security schemes for insured persons in the defense and security forces and civilians and the depoliticization of appointments to positions of responsibility in social security bodies have been proposed. All of those measures are designed to revalue and sustain the benefits of social security schemes.