The Director General of the National Social Security and Insurance Trust, Mohamed Fuaad Daboh, has called on social security administrators to be both vigilant and diligent in the investment of social security funds.
The NASSIT strongman made this appeal during the opening ceremony of the International Social Security Association (ISSA) Technical Seminar on the Investment of Social Security Funds in Abidjan, Cote d’Ivoire, on Monday, 9th September 2024, on the theme: ‘Investing Social Security funds for Viable and Sustainable Social Protection Systems’.
Deputising for Mr Mohamed Ali Bensouda, President of the ISSA Technical Commission on Investment of Social Security Funds, Mr Daboh noted that social security is a fundamental human right and that social security institutions have a responsibility to ensure that citizens have access to this right under the best possible conditions.
The Director General, who doubles as the Vice President of the ISSA Technical Commission on the Investment of Social Security Funds, added that as social security institutions, “We have the unique privilege of being part of the decision-making architecture that sets the course for the development of social protection in our countries”. He described the investment of social security funds as a central activity in the governance architecture of social security schemes, adding that social security administration is based on the three key functions of collecting contributions from employers and employees, paying benefits and providing services to members, and building up social security reserves from the excess of contributions over expenditure, which are then invested to pay benefits when expenditure exceeds contributions.
Mr Daboh told the gathering of social security experts in Abidjan that even though in each of these processes, social security administrations encounter difficulties, ranging from evasion and default in the payment of contributions to errors in the payment of benefits, the administrative structures of social security schemes make it possible to put in place verification and control mechanisms capable of limiting the incidence of these phenomena, as well as measures for recovering unpaid contributions and/or undue benefits. “However,” the NASSIT Strongman explained, “the situation is different when it comes to the investment of social security funds, as it is focused on managing modelled risks to create value for social protection systems”, adding, “Errors in risk assessment lead to substantial losses for social security systems; hence the need for greater vigilance and diligence at every stage of the decision-making and investment management processes.”
The NASSIT Director General went on to say that beyond the objective of guaranteeing intergenerational equity, reinforcing stability, and improving the long-term sustainability of social protection systems, social security reserve funds also play a development role by supporting governments’ development policies and programmes and financing the wider economy. “This is why the ISSA, the world’s leading institution for social security administrations, has set up the Technical Commission on the Investment of Social Security Funds, one of thirteen technical commissions responsible for developing and sharing knowledge among practitioners responsible for managing social security programmes.
“The Commission is also responsible for the ISSA guidelines on the investment of social security funds, which all of us have had the opportunity to consult,” Mr Daboh told his audience. Mr Mohamed Fuaad Daboh expressed gratitude to the Minister for Employment and Social Protection, Adama Kamara, for the support and guidance that the ministry provides to the social security institutions in Côte d’Ivoire, the ISSA Secretary General, Marcello Abi-Ramia Caetano, and the Director General of the IPS – National Social Insurance Fund, Côte d’Ivoire, Denis Charles Kouassi, for hosting the event. The three-day ISSA Technical Seminar on investing Social Security funds for viable and sustainable social protection systems is taking place from the 9th to the 11th of September 2024 at the Hotel Sofitel Ivoire, Abidjan, Côte d’Ivoire.
