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Outcome summary

The Tenth Actuarial Valuation Report was published in 2017 and part of its recommendations were endorsed by the Social Security Organization (SOCSO) Board.

Outcome achieved

The Tenth Actuarial Valuation Report was published in 2017 and part of its recommendations were endorsed by the Social Security Organization (SOCSO) Board. Recommendations of the tenth actuarial valuation included major reforms, as well as the long-term planned increase of the contribution rate of the general invalidity and survivors’ branch, to strengthen future financial sustainability of the scheme. The Government is using the report to consider options for extending coverage and benefits of social protection programmes. The SOCSO Board also updated its statistical database by taking into account recommendations of past as well as the most updated actuarial valuations.

ILO's contribution to the outcome

The ILO conducted the tenth actuarial valuation review as well as a review of investment strategies of the social security fund and made recommendations related to technical and policy aspects. The result of the study was presented at the tripartite Board Meeting of SOCSO and shared among social partners, as well as with the stakeholders of the scheme. The ILO published a report in 2017. The actuarial valuation review is aligned with relevant international labour standards, such as Convention No. 102, and the Employment Injury Benefits Convention, 1964 (No. 121). With the support of the ILO, SOCSO staff were trained in actuarial valuation and also provided with on-the-job training. The ILO organized a study tour to Canada for SOCSO staff during July 2017, with the purpose to learn from good practices of employment injury insurance schemes as well as other public injury schemes. Five SOCSO staff members joined the study visit to Canada.

Gender equality & non-discrimination

AA major recommendation of the valuation study endorsed by SOCSO is a planned long-term increase of the contribution rate of the general invalidity branch, which includes widows of deceased workers and their children as one of the major beneficiaries. This increase would be necessary in order to maintain long-term financial sustainability.
2017 MYS126 Disability , Actuarial valuation , Impact evaluation , Old-age , Model , Monitoring/evaluation , Survivors , Statistics , Projections