ARUSHA: Social Security Experts Discuss Co-ordination of Benefits Within EAC Common Market

Social Security Experts concluded a meeting in Arusha Friday 17 June to consider and consolidate the various actuarial studies undertaken by the Partner States’ Social Security Institutions. East African Community Secretariat, Arusha, Tanzania, 20 June 2011: A three-day technical meeting of the Social Security Experts concluded in Arusha on Friday 17 June 2011. The meeting was convened to consider and consolidate the various actuarial studies undertaken by the Partner States’ Social Security Institutions and address, among other issues, the financial and economic implications on the co-ordination of Social Security benefits, taking into account the current systems, policies and laws in the Partner States. The chairperson of the meeting, Mr. Oswald Habonimana, Burundi’s Director General of Social Protection in the Ministry of Public Service, Labour and Social Security, noted that the process of ensuring co-ordination of social security benefits in the Community was complex but manageable. He reiterated that the meeting was the beginning of another process (after the negotiations of the Common Market Protocol) which will ultimately lead to the adoption of a regulation by Council of Ministers on the co-ordination of social security benefits. The EAC Director for Social Sectors, Ms. Mary Makoffu commended the Social Security Experts for their commitment in the process of ensuring the co-ordination of social security benefits for workers in the Community. She applauded the experts for their valuable inputs which enabled the Council to make a decision on the way forward and the International Labour Organization (ILO) for the continued technical and financial support towards the process. The ILO Social Security Expert based at the Addis Ababa regional office, Mr. Aly Cisse, appreciated the continued efforts by the EAC Partner States to keep the dialogue and consultative process on co-ordination of social security benefits high on the EAC agenda.  He noted that the exercise to co-ordinate social security was complicated and a major process, as can be seen by the length of time taken in the European Union and Caribbean Community (CARICOM). The ILO Social Security Expert assured the experts of ILO’s continued committed and support to the EAC desired goals and objectives. During the meeting, Partner States highlighted the Actuarial Studies so far undertaken by the various Social Security Institutions. Some of the issues that emerged from the discussions were: none of the Actuarial Valuations that were carried out touched on the financial and economic implications of co-ordination of social security benefits. Secondly, none of the Valuations done factored movement of workers and were based on other assumptions and some of the Actuarial Valuations were not carried out during the last five years. Lastly the Actuarial Valuations presented focused on specific issues of the particular scheme and not on the financial implications of co-ordination. The meeting therefore noted that a Regional Actuarial Study was necessary to inform the process in order to achieve co-ordination of the Social Security Systems within the region. In this context, the meeting recommended that: a specific Actuarial Study focussing on co-ordination of social security benefits in the region be undertaken to analyze migration patterns within the region, determine administrative costs of co-ordination, the sustainability and robustness of each scheme. Secondly, in the interim, Partner States Social Security Institutions could enter into Bilateral or Multilateral arrangements to protect workers who have already moved within the Community. The meeting prepared Draft Terms of Reference for the actuarial study on the co-ordination of social security benefits within the EAC Common Market. The Draft TORs took into account the various variables needed to be captured in the Actuarial study to inform the process of co-ordination. The meeting further recommended that the EAC Secretariat procures the services of an Actuarial Consulting Firm or a qualified Actuary to undertake the Actuarial study on the co-ordination of social security benefits within the EAC Common Market. The meeting also recommended that the EAC Secretariat to mobilise the necessary resources to facilitate the study; and the ILO continues assisting the process by providing technical and financial assistance. A roadmap was developed to guide the process of undertaking the actuarial study and its validation process. A progress report to EAC Council of Ministers on the Study is expected to be submitted by end of November 2011 and a final draft report is expected by mid December 2011. The Meeting of the Ministers responsible for Labour and Employment to consider the Study findings is to be scheduled in March 2012 and in April the same year the Council of Ministers is expected to consider the Study recommendations. The meeting was attended by Social Security Experts from the Partner States, workers’ organisations representatives, East African Trade Union Confederation (EATUC), as well as social security experts from ILO Addis Ababa office. For more information please contact: Owora Richard Othieno, Head of Department; Corporate Communications and Public Affairs; Tel: 255-784-835021