National Organization for Social Insurance
Egypt
Africa

Achieving the financial sustainability of the social insurance system through resolving the financial entanglements with the Public Treasury and the National Investment Bank

Implementation year
2020

The social insurance system in Egypt has faced for decades the problem of financial entanglements with the Public Treasury and the National Investment Bank, which affected the financial sustainability of the system and posed the threat of having a cash deficit in social insurance funds in the near future. Subsequently, this would result in the non-payment of cash entitlements to the eligible, as ensured by the system.

In its endeavor to address this problem, the social insurance system in Egypt through the National Organization for Social Insurance (NOSI) used the ISSA Guidelines to face the challenges of resolving financial entanglements with the Public Treasury and the National Investment Bank.

The system adopted reform steps including issuing good legislation that provide for the independence of the social insurance system from the Public Treasury, preparing sound actuarial studies that would result in achieving the expected financial sustainability of the schemes, and ensuring the obligation of the competent authority to implement the actuarial measures of the social insurance schemes.

These reform steps have resulted in the independence of the social insurance system from the Public Treasury.

Topic:
Governance and administration