Result achieved

A policy measure to improve the financial and administrative governance of the social protection system, making it more robust has been adopted and operationalized (Step 3)

Number of countries that have adopted or operationalized policy measures to improve the financial and administrative governance of the social protection system, making it more robust (Step 3)
31.03.2021 ZAF177 Public 2020-21 | 8.2.1 with UN Agencies, excluding IFIs

Linked projects

Outcome summary

An actuarial valuation report has been accepted

Outcome achieved

Government and the Social Partners at the National Economic Development and Labour Council (NEDLAC) accepted the actuarial valuation reports for the comprehensive social security policy reforms in March 2021. The actuarial valuation reports presented design options and recommendations, and a funding policy paper for a sustainable National Social Security Fund. The actuarial reports informed the development of a Green Paper on Comprehensive Social Security for comprehensive social security reforms. The Green Paper addresses key gaps, including low coverage and the financial sustainability of the current social security system. The Green Paper also proposes the establishment of a public social security fund (National Social Security Fund (NSSF) to administer a financially sustainable national social security scheme.

ILO's contribution to the outcome

Within the context of a Memorandum of Understanding signed in February 2018 between the ILO and the Government of South Africa “technical cooperation on design, financial analysis, institutional and regulatory framework and implementation plan for the comprehensive social security reform in South Africa (2018 – 2021)” , and with contributions from the Government of South Africa, the ILO commissioned an actuarial valuation to inform options for the design of a sustainable National Social Security Fund (NSSF). The actuarial valuations began in August 2019 and were completed in March 2021. In August 2020 and March 2021 respectively (before the adoption of the Actuarial Valuation reports), the ILO provided coordination and technical support to the tripartite Actuarial Sustainability workshops hosted by the Government of South Africa to review the draft actuarial reports. To facilitate the effective engagement by Government public officials and the NEDLAC Social Partners in the actuarial valuation process, the ILO collaborated with the ITC Turin throughout the biennium 2020-2021 to provide training support in a wide range of topics on the management and governance of social security systems as well as on actuarial valuations. The ITC Turin provided training support to public officers and the tripartite constituents in areas including governance of social security, pensions, public finance, social security policy and administration, statistics and actuarial practice in social security.

Gender equality & non-discrimination

In recognition of the social and economic marginalization of women, gender considerations were taken into account in the modelling for the policy reforms for a more inclusive and broadened social security system. Gender specifics factored in the modelling included the following variables; female participation rates, female mortality rates, unemployment rates, employment history, income levels etc.

Partnerships

The Witwatersrand (WITS) School of Governance (Social Security Management Studies) has an existing partnership with the ILO to provide capacity support to the Government of South Africa towards a policy design for a Basic Income Grant. The WITS School of Governance serves as the Chair of the joint ILO and the Department of Social Development Expert Panel that provides strategic guidance to research examining the feasibility for a Basic Income Grant.

SDG

SDG
Goals
  • End poverty in all its forms everywhere
Targets
  • 1.3 Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable
All branches