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Representatives should not rush to approve the “guarantee rate”

Amman Today

publish date 2023-01-02 13:07:08

He called on the government to stop its interference and introduce new parties with weighted votes over the government’s vote in the administration of social security

Amman – Raed Sbeih

The House of Representatives referred, in a legislative session on Monday, a bill amending the Social Security Law for the year 2022, giving it the status of urgency.

For his part, economic expert Hossam Ayesh demanded in his statements to “compassThe deputies removed the character of urgency from the deputies’ discussions, stressing the need not to take any hasty decisions that could affect the guarantee funds and their beneficiaries.

Ayesh said: In fact, we have to distinguish between two things regarding the amendments to the Social Security Law, between necessary amendments, and amendments that reflect that there are fears about the future of social security.

He pointed out that there are amendments taking place in all countries of the world, amending the regulations related to the guarantee in view of the high costs and insurance sources or revenues that may have been exposed to problems related to the number of employees and their ability to finance the financial obligations of the guarantee, as well as the investment opportunities that are almost clear.

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Ayesh pointed out that in Jordan we have 60% of the guarantee funds invested in treasury bills or in debts provided to the government, meaning that there are no investment opportunities that can provide more revenues.

And he continued by saying: On this basis, the actuarial accounts of the Social Security Fund, although they are now reassuring, are exposed to other problems, especially with the great economic transformations, whose negative results include fewer job opportunities, or that workers will have greater difficulties in paying their insurance contributions. .

Dissociation of the warranty from the problems of the government

Ayesh called on the government to distance social security from its “problems,” and in particular that social security funds, especially investment funds, not turn into debts in favor of the government at an increasing pace, because this involves risks related to the accumulation of these funds in the government pocket, and therefore there may be difficulties as governments face difficulties in Her public debts, by getting debts to pay off those debts, I’m afraid she’s getting more debts to pay off her Social Security debts, I mean debts from Social Security itself.

Economist Hossam Ayesh: The administrative system governing the guarantee must be changed, including the tripartite system, and government interference must be stopped

He added by saying: On the other hand, with the increase in the insurance cost that exceeds one billion and 200 million to one billion 300 million, I think that this matter requires either a change in the investment mechanisms of the Social Security Investment Fund, and investment tools, and this requires great prudence, perhaps for this moment we have not seen it In the required manner, which provides better possibilities for investment, or the other aspect related to economic growth, which provides more job opportunities, whether in terms of number or revenues and returns, which improves insurance revenues.

Read also: An insurance expert continues to expose the defects of the new “security law” that will limit the voluntary subscription

And Ayesh added: Unfortunately, job opportunities are few, and economic growth is low, and it can hardly provide 30,000 job opportunities per year, and this is an extremely dangerous matter.

Other problems to consider

He stressed that there are other problems that must be taken into account by Social Security and the House of Representatives, as environmental risks today have become part of administrative and financial thinking and are not just a luxury, and they come through the environmental risks themselves, which affect the economy, companies, institutions, banks and individuals in their current form, and the risks It is also related to the shift towards new forms of non-carbon economic activities, which means that the economy is affected in this respect.

Ayesh pointed out that the other matter has to do with these financial transfers for the benefit of the beneficiaries, in fact, with the high costs of inflation, the increase in prices, and with the increase in costs in general for the economy, pension salaries undoubtedly do not meet the needs of many, especially since about 60% is within this percentage. Their salaries range between 300 and 400 dinars, and more than 85% of their salaries are less than 500 dinars, and this is a small return.

He added, however, by saying: But on the other side, and we think logically, it is not permissible to subscribe for a period of 20 years, and the volume of your contributions does not exceed (10 thousand dinars), and this is a large limit, and then you get pension salaries that exceed this salary ten times.

He added, therefore, it must be taken into account in terms of adjusting retirement, because initially when the age of 60 years was considered, the average age ranged between 58-60 years in total, and today we are talking about an average of 73-74 years, and this means that there is a problem with the guarantee’s ability to fulfill. with its obligations.

Ayesh pointed out that “in all cases, the guarantee is not a governmental issue, it is a matter of the future of society in all its sects, and therefore thinking about amending its regulations and laws, despite their abundance, is a matter that must take into account stability and people’s need for a return sufficient for the obligations incurred by them, and accordingly To also take on future commitments.”

He wondered: How will the situation be from now until 5 years, and it is not enough to just look at the current period and amend it, the future is supposed to be taken into account.

A message to deputies and notables

Ayesh sent a message to the National Assembly in the context of discussing the amendments to the guarantee law, saying: Representatives and notables should not rush to take decisions that may affect the sustainability of the guarantee on the one hand, and may affect the beneficiaries on the other hand, or exhaust the participants on the third hand, but rather they have to come out with a conclusion. It leads to results that allow social security to be sustainable on the one hand, and not to incur costs.

He stressed by saying: Perhaps this necessitates a change in the administrative system governing social security, including the tripartite system, meaning that it is time to introduce other parties to have a weighting vote, not the government voice, which is more likely for decisions than the voice of workers and workers who are protected by social security.

Stop negative government interference

He stressed that within the framework of the amendments, another serious matter must also be considered, as the Prime Minister or the various ministries issue decisions to refer employees to retirement, without completing the legal conditions stipulated in the Social Security Law, and thus transforming their affiliation with the insurance and turning them into retirees who receive their salaries.

He said: Therefore, it is also time for the government to stop making decisions related to the transfer of employees to retirement without them meeting the conditions set by the Social Security Law.

Ayesh expressed his regret that “the government often complains about early retirees, but it often refers employees to early retirement, and this is a very dangerous matter.”

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The economist concluded that “the problem with the government is from two sides, the first is the decisions that contradict even the general directions, and the problem is related to its low economic performance that does not lead to protection for the guarantee by increasing economic growth, encouraging job opportunities and attracting investments, and raising the number of participants in the guarantee to finance its various activities.”

He concluded by saying: Therefore, the government is demanding amendments today, especially with regard to the need to reduce its interference in the guarantee, or to improve its relationship with the mechanism of guarantee work, and this is a very important matter.

It is worth noting that the government withdrew the “amendment of the security law” after the great controversy arose about it, before submitting it to the House of Representatives again for discussion “in an urgent manner.”


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Jordan News

Source : اخبار الاردن

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