The current legal and effective coverage situation are analysed both in the light of current legislation and scheme administration, as well as within the global context of employment trends and population changes which may trigger changes in both legal and effective coverage.

This guideline discusses the considerations that should be taken into account when the actuary assesses social security scheme coverage. The extent of social security scheme coverage not only has significant implications for the scheme’s financing, but also has policy implications for the type and extent of the social security benefits provided today and in the future. The extent of coverage is a key driver in determining whether the population has access to social protection. The effective coverage rate is an implicit indicator of the efficiency of the administration, notably in ensuring access for the population and enforcing contribution collection. It also has significant financial implications for the scheme. This guideline should be read in conjunction with Guideline 3.