Result achieved
Outcome summary
A framework for the design of a National Social Security Fund was adopted
Outcome achieved
Representatives of Government, Business, Labour and the Community Constituency in the National Economic Development & Labour Council (Nedlac) developed and endorsed a framework for the design of a National Social Security Fund (NSSF) during the months of January to August 2019 through a process of social dialogue.
The Government of South Africa in consultation with the Social Partners developed a design for a NSSF underpinned by guiding principles of ILO Convention 102 and Recommendation 202.
The GoSA in consultation with the Social Partners at NEDLAC developed and agreed on the design for a National Social Security Fund that is gender responsive and guided by the principles of social inclusion and non-discrimination. The design for a NSSF considers that women, persons with disability and workers in precarious employment are more predominant in low-income occupations therefore seeks to provide coverage to workers in situations of vulnerability. Children as dependents are also considered as beneficiaries of survivors benefits on the death of the breadwinner.
ILO's contribution to the outcome
Throughout 2018 and from January –August 2019, in collaboration with the Government of South Africa, the ILO provided technical assistance in refining the design of the model for social security reform. The assistance included actuarial valuations (projections/modelling) of different reform options for the proposed NSSF. The actuarial valuations entailed the assessment of sustainable funding models and automatic balancing mechanisms for the NSSF and non-contributory social protection floors.
To facilitate the effective engagement by the tripartite-plus constituents in the discussions held towards a sustainable NSSF, the ILO facilitated their training on social insurance principles and methods and shared international good practices on national strategies for the extension of social security systems. The ILO and the ILO-ITC also organized a stakeholder dialogue and training on the ILO Pension Model for the negotiating tripartite-plus constituents in Nedlac as well as experts from the private sector, academia and the Statistical Office STATS SA. The training provided the constituents with the opportunity to interact with the ILO PENSION Model used in the actuarial valuation and to enhance their effective engagement with the actuarial process. The ILO also collaborated with the ILO-ITC to facilitate the participation of a government actuarial specialist in a course on social protection actuarial modelling.
The ILO sensitized the tripartite-plus constituents within Nedlac on the key provisions of C102 and Recommendation 202. In particular constituents were sensitized on provisions of Recommendation 202 that relate to the objectives of universal coverage, minimum income replacement rates as stipulated in the Convention and governance principles indicated in both the Convention and Recommendation. In 2018, the ILO shared and presented to the tripartite-plus constituents findings and recommendations of a gap analysis on South African law and practice in respect of Convention 102 conducted in 2015. ILO provided technical and advisory support towards ensuring that the actuarial valuation conducted to establish a sustainable NSSF would factor in the guiding principles contained in R202 with particular reference to part IV of the Recommendation that focuses on “National Strategies for Extending Social Security Systems”.
With reference to the guiding principles of C102 and, the ILO provided technical and advisory support towards ensuring that the actuarial valuation conducted to determine a sustainable NSSF factored in the principles of non-discrimination, and responsiveness to gender, special needs and social inclusion. To enhance the appreciation by government for an inclusive NSSF, the ILO facilitated a series of webinars for the government officials. The first round of webinars was held in 2018. The two Learning & Practice Labs on the extension of Social Protection to Informal Economy were held on 31 October 2018 and on 13 December 2018. The second round of webinars was held in 2019 starting with a webinar on Designing and delivering benefi...
Gender equality & non-discrimination
The discussion document presented to the Nedlac tripartite-plus constituents for a National Social Security Fund provided an in-depth analysis that took into account gender considerations for South Africa’s social insurance system. This sensitized the tripartite-plus constituents on the gender dimensions of South Africa’s social security system. The gender analysis of the national social insurance system aimed to ensure that the design for a NSSF would expand contributory social insurance to include low income earners, particularly workers employed under conditions of informality. Aspects of non-discrimination and gender equality were also taken into account in the design of the NSSF benefit determination and eligibility criteria. The actuarial valuation for a sustainable NSSF was undertaken under the guiding principles of non-discrimination, and social inclusion