Social Security Principles and Practices Arjun Kumar Gautam Employees Provident Fund

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Out line of the Discussion Part 1 Conceptual Framework of Social Security Introduction, objectives, Principles, Financing, Benefits, Social Security Floor. Part 2 Social Security Management and Marketing Social Security in Global Prospective: Adequacy, Coverage, Financing, Governance, ICT, Investment, Social Security in Nepalese Prospective: Integration, Coverage, Financing, Governance. Social Security in EPFs Prospective: Our destination, Scope, Issues and Challenges

Conceptual Framework of Social Security Part 1 Conceptual Framework of Social Security

Some Relevant Terminologies Social Protection, Social Assistance, Social Insurance, Safety Net, Social Justice.

What Social Security is? Social risk, Uncertain future events, Social and financial exclusiveness, Risk management and transfer Quality of life, Basic social and financial requirement, Formal and informal schemes, Social justice, Social peace, Social harmonization, National happiness,

Why Social Security? Demographic Factors: Family and social factors: Migration, Life expectancy, birth rate, labor market Family and social factors: Nuclear family, Urbanization Constitutional factors: Human rights, social justice, state obligation Political factors: Public awareness and trade union movement Global factors: International agencies: ILO, ISSA, World Bank, UNICEF, ADB

Global Principles of Social Security Integration: Managed by one or few separate entity, Coverage: Mandatory coverage to all people (Particular to poor peoples) Adequacy: For the pre-qualifying conditions, Financing: Contributory including the government contribution, Governance: Tripartite.

Financing Modality of Social Security Tax Financing (Minimum requirement) Contributory (Quality of Life) Employers Liability (as per the terms of employment) Private schemes (Risk Management) Social schemes (Informal social security)

Prequalifying conditions of Social Security Old age: Old age Pension Death: Dependent Pension Disability: Invalidity Pension Sickness and work Injury: Medicare Unemployment: Unemployment Pension Maternity: Maternity benefits

Social Security Benefits Defined Contribution Defined Benefits

Social Protection Floor "Social protection floors are nationally defined sets of basic social security guarantees that should ensure, as a minimum that, over the life cycle, all in need have access to essential health care and to basic income security which together secure effective access to goods and services defined as necessary at the national level." (ILO, 2011)

Access to essential health care, including maternity care; National social protection floors should comprise at least the following four social security guarantees, as defined at the national level: Access to essential health care, including maternity care; Basic income security for children, providing access to nutrition, education, care and any other necessary goods and services; Basic income security for persons in active age who are unable to earn sufficient income, in particular in cases of sickness, unemployment, maternity and disability; Basic income security for older persons.

minimum level (horizontal dimension) and This two-dimensional approach of social protection floor: minimum level (horizontal dimension) and progressive achievement of higher levels of protection (vertical dimension)

TOP 10 GLOBLE CHALLANGES OF SS Coverage gap (migrants and informal) Adequacy and Sustainibility, Inequality across the life course, Peopulation ageing, Change in the labor market, Digital economy, Health and long care, Protection of migrant workers, High public expection.

Social Security Management and Marketing Part 2 Social Security Management and Marketing

Social Security in Global Prospective “Adequate Social Security for All has became the global agenda of social security reform” Adequate : For pre qualifying condition, replacement rate. Coverage: Two third of world population has no adequate social security Financing: Contributory rather than tax financing Governance: Integration of scheme ICT: Cost effective and efficient service delivery Investment: Secured, profitable and productive investment portfolio

Social Security in Nepalese Prospective “Social Security reform has became political and economic agenda Nepal” Policy dilemma Segmented Overlapping and Duplicating Less Coverage: Migrant workers, informal sector, Private Sector employees Inadequacy: Except Government Employees Question on Sustainability: Government Pension, Social Assistance Program

Social Security in Nepalese Prospective Agenda of Reform: Integration: Legal + Institutional. Pension Reform: Contributory Pension to Govt Employees. Extension of Contributory Social security Schemes Sustainability and effectiveness of Social Security Allowance Provident Fund for Migrant workers and workers of informal sector.

Social Security in EPFs Prospective Our destination Scope Governance Investment Issues and Challenges Benefits Modality

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