Knowledge Sharing Workshop On Social Security Systems
The GAMBIASocial Security & Housing FinanceCorporation SchemesSaibatouBFaal
A narrow strip of land and water almost surrounded by Senegal, 15 to 30 miles (25 to 50km) wideand 295 miles (495 km) long with theRiver Gambia, dividing the country length wise into two river banks (Northern river bank and Southern river bank)
Capital City:BanjulGDP $903.8 million (2013 The World Bank)Population1.928million(2014 The World Bank)Labour Force 774,012 (2013 World Bank)Life Expectancy58years (men)60years (women)(UN, World Bank)Currency Dalasi (Exchange Rate: 1 US$=42.00 Dalasi)
SocialSecurity and Housing Finance Corporation (SSHFC) was established by Act of Parliament and the enabling legislations areSSHFC Act 1981Injuries Compensation Act 1990Social Security Act 2010Housing Finance and Development Act 2010SSHFC Act 2015
Thelegislation provides for the composition of a Board as follows:ChairpersonVice Chairperson (Permanent Secretary of the Ministry)The Managing DirectorThe Permanent Secretary of the Ministry responsible for landsA representative of the employees of the CorporationA representative of the employee members of the National Provident Fund
A representative of the PensionersA representative of the employee members of the Federated Pension FundThe President appoints ex-officio members of the Board
GOVERNANCE:TENURE OF BOARD MEMBERS
Ex-officiomembers shall holdofficefor three years and may be reappointed for not more than one further term.A member may resign from office in writing addressed to the President.
GOVERNANCE:MEETINGS OF THE BOARD
Thelegislation provides forFrequency ofmeetings - at least once every three monthsEmergency meetings – One third of the Board membership must request an emergency meeting.Quorum of a meeting – one half of the Board must be Present for a meeting to proceed.Decision making process (a simple majority)Minute recording – (a requirement)Board is empowered to regulate its procedure at meetings.The Board is responsible to designate a staff as Board Secretary
MANAGEMENT AND ADMINISTRATIONOFTHE CORPORATION
The general policy of the Corporation must comply with the ActThe minister may give general directives in writing to the Board on matter of policy and the Board shall comply with such directives.
MANAGING DIRECTOR OF THE CORPORATION
TheManaging Director is appointed by the President.
THE SOCIAL SECURITY FUND
Thelegislation established Social Security Fund, whichconsistofThe Federated Pension Fund – (An Insurance Scheme)The National Provident Fund (A Savings Scheme)Thecorporation is tasked with the administration of the Social Security Fund.
The Injuries Compensation Fund
The Injuries Compensation Act also tasked SSHFC with the joint administration of the Injuries Compensation Fund with the Department of Labour
ORGANISATION OFTHE CORPORATION
Tocarry out the assigned tasks, SSHFC is organised into the following Departments:Operations DepartmentDepartment of HumanResourcesAnd AdministrationInternal Controls DepartmentFinance& Investment DepartmentDepartment of Research and policy planningInformation Technology DepartmentPublic Relations DepartmentHousing Department
EMPLOYER AND EMPLOYEE COVERAGE
Thelegislation applies toAny employer not specifically exempted under the ActAny employee not less than 18 yearsand not more 59 years of age employedby an employer to whom the Act applies,Any employer who was covered under the PensionsAct 1950before the coming into force of the current legislationAny citizen of The Gambia employed by Diplomatic Missions, International institutions similar to diplomatic missions or Non Governmental organization.
EMPLOYERSANDEMPLOYEESEXEMPT FROM COVERAGE
Civil ServantsNon-Nationalsemployed in DiplomaticMissions,International institutions similar to diplomatic missions or non governmental organizations.
PAYMENTS INTO THE SOCIAL SECURITYFUND
NationalProvident Fund (Contributory)Employer Contributes 10% of Basic salaryEmployee Contributes 5% of Basic SalaryFederatedPension Fund (Non Contributory)Employer Contributed 15% of Gross SalaryEmployee does not contributesInterestaccruing from investments relating to the two funds are paid into the respective funds.Any other income earned on the assets of the Social Security Fund or the Injuries Compensation Fund are paid to the respectiveFunds.Benefits/Compensations are paidout of the respective Fund.
PAYMENTS INTO THE INJURIES COMPENSATION FUND.
Injuries Compensation Fund (Non Contributory)Employer pays 1% of gross salaryuptoa maximum of D15.00dalasis
THE ACCOUNTS OPERATED UNDER THE SOCIAL SECURITY FUND
AMembers’Fund AccountAn Income AccountAn Administration Account
All contribution receipts together with interest allotted to members of the NPF are credited to this accountBenefitspaid out of the NPFarecharged to this account
Interest accrued on investments and income from investments are credited to this accountInterest allotment to members’ Accounts is charged to this accountTransfers to the Administration Account are made from this accountTransfers to the reserve fund are made from the account.
Areserve fund is maintained into which the following are paidPayment of fines and penalties under the enabling Act and regulationsContributions by employers and employees which cannot be allotted to a member’s account.
REGISTRATIONOF EMPLOYERS AND EMPLOYEES
Allregistrableemployers are required to register with the Social Security Fund within 30 days as from when they becameregistrable.An application form as prescribed by regulation is completed for the purposes of employer registration.Initial Contribution is required to commence on the first day of the month following the month the employer becameregistableunder this ActAn employer notregistrableunder the Act may register voluntarily provided the employees give their written consent.A self employed may register voluntarily.
REGISTRATION OF EMPLOYEES
Employers are required to register their employees by completing theprescribed formEach registered employee is provided with a membershipcard.An employee member whosecuresemployment with a new employer should produce his/her membership card to the newemployerand the new employer shouldcomplete the prescribedtransfer advice form.
The Corporation creates and maintains an account for each registered employee memberContributions received in respect of an employee member are credited to the contribution account of the member while any benefits paid to the member are debited from the member’s contribution account.A statement of accrued benefits for the Federated Pension Fund or a statement of account for the National Provident Fund is produced andforwardedto each employee member through his/her employer.
BENEFITTYPESPROVIDED UNDER THE NPF
Thefollowing benefits are providedStatutory Retirement BenefitInvalidity BenefitsWithdrawal BenefitSurvivors’ BenefitRedundancy Benefit
Employee members completetheprescribed nomination form to nominatedependant(s) andmust clearly specify how survivors’ benefit should be distributed among his/hernominee(s).The nominations could be updated periodically to reflect the changing circumstances of an employee member.Where a member fails to update the nominations registered and the circumstance of the member is found to have changed at the time when survivors’ benefit becomes payable, the benefit is paid to the curator of intestate estates for distribution in accordance with intestate laws.
FEDERATED PENSION FUND
An Insurance SchemePensionis accrued at a rate of 2% of salary for each year of service, subject to a maximum of 66.67%,where salary in defined as basic salary plus a fixedallowances.Neithersalariesnor pensions are indexed
A member must have served at least 5 yearstoqualifyforbenefits.Femalemembers are allowed to benefit if they retire on marriage grounds. The five year minimum service would not affect entitlement in such cases.Amember with less than five years service at statutoryretirement ageis paid a lump sum benefit based on the pension accrued.A member with less than five years and retires before the statutory retirement age would forfeit his/her benefits unless under circumstances ofretrenchment orredundancy.
NATURE OF BENEFIT
Service less than 10 years, lump sum equal to 5 x full pension entitlementService 10 years and above pension is payable but part of the pension entitlement could be commuted into a gratuity
TYPES OF BENEFIT
Normal retirement benefitRetirement benefit on marriage groundsVoluntary retirement at age 45 years.Ill-Health/Invalidity benefitsSurvivors’/Death benefitRedundancy/Retrenchment benefit
INJURIES COMPENSATION FUND
The Injuries Compensation Act 1990 was enacted to replace the workmen’s compensation Act 1940. The new legislation remained dormant until July 1996 when it becameinto effect.
Thelaw cover’s workmenofThe Civil ServiceThe Public EnterprisesThe Local Government authoritiesThe Private sector employers
Casual workers on piece mealcontractDomestic workersMembers of employer’s family living in employer’s houseOut workers
Employers register bycompleting the prescribed formEmployee registration is done by completing the prescribed form supported by required documentation.
The Scheme is jointly administered by SSHFC and the Department of labour.SSHFC –Trustee of the fund:registers employers and employees, collects contributionsand pays compensationsDepartment of Labour –Processesclaims, prevention and receive specialist supportfrom social Welfareand Medical & Health Departments.
TYPESAND LEVELS OF COMPENSATION
DEATH/ FATAL ACCIDENTS120 months of deceased member’s earnings where earnings are subject to a maximum of D1500 a month.Minimum compensation inD100,000
PERMANENT TOTAL INCAPACITY
A Pension of 60% of monthly earnings which are subject to a maximum of 1500 Dalasi. Minimum pension isD100.00Wherethe injured workmanneedsa constant attendant, thena constant attendance allowanceof 25% of the injuredworkman’s pensionbecomes payable monthly
PERMANENT PARTIAL INCAPACITY
Incapacity of 20% or more(pension payable equalsthe percentage incapacity multiplied by pension payable under permanent totalincapacity).Incapacity of less than 20%(alump sum ispayable)
TOTALTEMPORARY INCAPACITY60% of earnings, which are subject to a maximum of D1500 is paid for sixmonthsPayment of pension may be extended for a further six months if the injured workman does not recover over the initial six monthsPARTIALTEMPORARY INCAPACITYInjuredworkman receives a monthly compensation equal to 60% of the different between the pre-accident and post accident wage ofinjured workman over the period of incapacity.
COST OF MEDICAL TREATMENT
Medicalcharges are shared between the employer and the Injuries Fund, where employer pays 25% of costs and the injuries fund pay 75% subject to a maximum of D10,000.00.Medical evacuation is subject to the approval of the Director of Medical services.