CNSS: 70% of contributors leave without a pension!
23 May 2011
Read by 3754 persons
To receive a pension, you must have accumulated 3,240 days of contributions. In 2010, out of 84,477 people who retired, only 25,262 were entitled to a pension. An internal commission at the CNSS is working on the problem.
The National Social Security Fund (CNSS) has, for several weeks, been reviewing social security legislation in accordance with the government's commitments under the last round of social dialogue, which resulted in the agreement of April 26. The fund has, in fact, just set up an internal commission which has been working for several days on a draft plan to regularize the situation of employees who, at the time of their retirement, did not have the required 3,240 days of contributions (10 years), a condition sine qua non imposed on employees in the private sector insured with this fund to be entitled to an old-age pension (*). And they are numerous. According to statistics that the fund has just finalized, out of the 84,477 people who reached retirement age in 2010, only 25,262 insured persons had accumulated the required 3,240 days for retirement, meaning 70% of contributors leave without any right to an old-age pension. And according to sources close to the case, every year almost the same proportion of people are in this situation.
The commission has begun a technical study that must examine the different aspects of this problem. The work consists of an assessment of the population concerned and the formulation of proposals. The commission is required to submit its report within two weeks to the CNSS Board of Directors, which will have to rule on the matter at its next meeting scheduled for the same month. The council's decision will be based on the results of the technical study, which are not yet finalized, but according to well-informed sources, two approaches are being considered to ensure the payment of a retirement pension to the insured persons concerned. Thus, the fund could opt either for a payment of pensions pro rata of the accumulated contribution days or proceed with the reimbursement of contributions to the insured persons. However, as in the case of point buyouts, for employees covered by the CIMR, pensioners will only recover the employee's share of contributions; the employer's share will be kept by the CNSS.
The Board of Directors will have to rule on the basis of the commission's work
The implementation of this second proposal will be easier insofar as the state of contributions is available and regularly updated by the CNSS services. On the other hand, the payment of pensions pro rata of the accumulated days will certainly require a reorganization of the CNSS information system as well as the contribution rates. The implementation would then be heavy and would take time... Would we therefore be moving towards a system of pure and simple reimbursement of contributions? One cannot pronounce hastily, explains a well-informed source, it will be necessary to wait for the results of the technical study. Whatever solution is adopted, the process is likely to be long.
In any case, the resolution of this problem will relieve many insured persons who discover at the time of retirement that they are not entitled to an old-age pension because they do not have the required number of days (3,240 days) of contributions. At the same time, it will lead to more vigilance. Because the CNSS will have to make a major effort to ensure continuous monitoring and inspection of companies in various sectors of activity and especially in high-risk sectors such as construction, textiles and agro-industry. Indeed, if so many people retire without having completed their ten years of contributions, it is also because of an increase in declarations, even late ones. This is the example of the employer who, checked by the CNSS, starts to declare his employees, but some of them will not have the chance to accumulate the necessary 3,240 days between the date on which they were first declared and the date of their retirement.
It should be noted in this regard that the government undertook on April 26 in the framework of social dialogue to create a tripartite commission to monitor and evaluate declarations to the CNSS. This commission will meet weekly to take stock.
Currently, it should be recalled that, according to the legislation on social security, retirement is conditional upon an age limit (60 years and 55 for minors who have proven five years of work underground), the cessation of all activity and the accumulation of at least 3,240 days of contributions. The amount of the pension paid is equivalent to 50% of the average monthly salary received during the last 96 months of activity and capped at 6,000 DH. This amount is increased by 1% for each insurance period of 216 days completed in addition to the 3,240 days, without the pension exceeding 70% of the salary, capped at 6,000 DH. The revision of this ceiling of the reference salary used as a basis for calculating the pension is also planned by the agreements of July 26 relating to social dialogue, as is the increase in the minimum pension, which will increase from 600 to 1,000 DH from July 1. It remains that, in crude terms, the maximum retirement that can be received from the CNSS is 4,200 DH per month. And you still have to be one of the 30% of contributors who receive it.
Published May 23, 2011
Posted online May 23, 2011
Lavieeco.com
The National Social Security Fund (CNSS) has, for several weeks, been reviewing social security legislation in accordance with the government's commitments under the last round of social dialogue, which resulted in the agreement of April 26. The fund has, in fact, just set up an internal commission which has been working for several days on a draft plan to regularize the situation of employees who, at the time of their retirement, did not have the required 3,240 days of contributions (10 years), a condition sine qua non imposed on employees in the private sector insured with this fund to be entitled to an old-age pension (*). And they are numerous. According to statistics that the fund has just finalized, out of the 84,477 people who reached retirement age in 2010, only 25,262 insured persons had accumulated the required 3,240 days for retirement, meaning 70% of contributors leave without any right to an old-age pension. And according to sources close to the case, every year almost the same proportion of people are in this situation.
The commission has begun a technical study that must examine the different aspects of this problem. The work consists of an assessment of the population concerned and the formulation of proposals. The commission is required to submit its report within two weeks to the CNSS Board of Directors, which will have to rule on the matter at its next meeting scheduled for the same month. The council's decision will be based on the results of the technical study, which are not yet finalized, but according to well-informed sources, two approaches are being considered to ensure the payment of a retirement pension to the insured persons concerned. Thus, the fund could opt either for a payment of pensions pro rata of the accumulated contribution days or proceed with the reimbursement of contributions to the insured persons. However, as in the case of point buyouts, for employees covered by the CIMR, pensioners will only recover the employee's share of contributions; the employer's share will be kept by the CNSS.
The Board of Directors will have to rule on the basis of the commission's work
The implementation of this second proposal will be easier insofar as the state of contributions is available and regularly updated by the CNSS services. On the other hand, the payment of pensions pro rata of the accumulated days will certainly require a reorganization of the CNSS information system as well as the contribution rates. The implementation would then be heavy and would take time... Would we therefore be moving towards a system of pure and simple reimbursement of contributions? One cannot pronounce hastily, explains a well-informed source, it will be necessary to wait for the results of the technical study. Whatever solution is adopted, the process is likely to be long.
In any case, the resolution of this problem will relieve many insured persons who discover at the time of retirement that they are not entitled to an old-age pension because they do not have the required number of days (3,240 days) of contributions. At the same time, it will lead to more vigilance. Because the CNSS will have to make a major effort to ensure continuous monitoring and inspection of companies in various sectors of activity and especially in high-risk sectors such as construction, textiles and agro-industry. Indeed, if so many people retire without having completed their ten years of contributions, it is also because of an increase in declarations, even late ones. This is the example of the employer who, checked by the CNSS, starts to declare his employees, but some of them will not have the chance to accumulate the necessary 3,240 days between the date on which they were first declared and the date of their retirement.
It should be noted in this regard that the government undertook on April 26 in the framework of social dialogue to create a tripartite commission to monitor and evaluate declarations to the CNSS. This commission will meet weekly to take stock.
Currently, it should be recalled that, according to the legislation on social security, retirement is conditional upon an age limit (60 years and 55 for minors who have proven five years of work underground), the cessation of all activity and the accumulation of at least 3,240 days of contributions. The amount of the pension paid is equivalent to 50% of the average monthly salary received during the last 96 months of activity and capped at 6,000 DH. This amount is increased by 1% for each insurance period of 216 days completed in addition to the 3,240 days, without the pension exceeding 70% of the salary, capped at 6,000 DH. The revision of this ceiling of the reference salary used as a basis for calculating the pension is also planned by the agreements of July 26 relating to social dialogue, as is the increase in the minimum pension, which will increase from 600 to 1,000 DH from July 1. It remains that, in crude terms, the maximum retirement that can be received from the CNSS is 4,200 DH per month. And you still have to be one of the 30% of contributors who receive it.
Published May 23, 2011
Posted online May 23, 2011
Lavieeco.com
