FOCUS AREAS FOCUS AREAS FOCUS AREAS FOCUS AREAS Our Our Vision - - PDF document

SOCIAL PROTECTION AND FORMALIZATION

NATIONAL PRESENTATION ANTIGUA & BARBUDA

Geoffrey Joseph Deputy Director

15 March 2017

FOCUS AREAS FOCUS AREAS FOCUS AREAS FOCUS AREAS

Our Our Our Our Vision Vision Vision Vision Our Our Our Our Mission Mission Mission Mission Genesis Genesis Genesis Genesis of

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Social Social Social Security Security Security Security in in in in Antigua Antigua Antigua Antigua & & & & Barbuda Barbuda Barbuda Barbuda Key Key Key Key highlights highlights highlights highlights of

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Actuarial Actuarial Actuarial Reviews Reviews Reviews Reviews Current Current Current Current Social Social Social Social Security Security Security Security System System System System Key Key Key Key Performance Performance Performance Performance Indicators, Indicators, Indicators, Indicators, 2014 2014 2014 2014 – – – – 2016 2016 2016 2016 Social Social Social Social Security Security Security Security Self Self Self Self-

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OUR VISION OUR VISION OUR VISION OUR VISION

We

We We We are are are are a a a a customer customer customer customer-

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centric, centric, centric, strategy strategy strategy strategy-

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focused focused focused and and and and technology technology technology technology-

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driven driven driven institution institution institution institution with with with with a a a a commitment commitment commitment commitment to to to to excellence excellence excellence excellence.

. . .

OUR MISSION OUR MISSION OUR MISSION OUR MISSION

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To To To efficiently efficiently efficiently efficiently provide provide provide provide Social Social Social Social Security Security Security Security Services Services Services Services through through through through the the the the sustained sustained sustained sustained efforts efforts efforts efforts

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strong strong strong strong leadership, leadership, leadership, leadership, robust robust robust robust compliance, compliance, compliance, compliance, a a a a highly highly highly highly-

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motivated motivated motivated and and and and knowledgeable knowledgeable knowledgeable knowledgeable staff staff staff staff and and and and the the the the prudent prudent prudent prudent investment investment investment investment

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the the the the Social Social Social Social Security Security Security Security Funds Funds Funds Funds. . . .

Genesis of Social Security in Genesis of Social Security in Genesis of Social Security in Genesis of Social Security in Antigua & Barbuda Antigua & Barbuda Antigua & Barbuda Antigua & Barbuda

Mid – to – late 1960’s

Need to provide for the social welfare of its citizen

Poor Relief Ordinance

National Provident Fund Act – 1970

Change of Government – 1971 Passing of Social Security Act – 11th July 1972 Commenced operations – 2nd April 1973

Key highlights of the 10 Key highlights of the 10 Key highlights of the 10 Key highlights of the 10th

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and 11 and 11 and 11th

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Actuarial Reviews Actuarial Reviews Actuarial Reviews Actuarial Reviews

Deficits in each year since 2011 All liquid investments used to meet expenditure Pensions and benefits being paid late Fund operating on “extreme” Pay-As-You-Go basis

No reserve funds Contributions insufficient to meet expenditure Extra funds supplemented by the Government of Antigua & Barbuda

Public confidence in Social Security diminished

Actuary: Derek Osborne Actuary: Derek Osborne Actuary: Derek Osborne Actuary: Derek Osborne

Current Social Security System Current Social Security System Current Social Security System Current Social Security System

Legislative Framework Utilization and Coverage Governance and Administration Solvency, Robustness and Sustainability Contributions

Current Social Security System Current Social Security System Current Social Security System Current Social Security System

Social

Social Social Social Security Security Security Security Act Act Act Act

All employed and self-employed persons are covered for two

main types of social security benefits

Short-term Benefits Long-term Benefits

Provision of a Non-contributory Pension (1993)

Old Age Assistance

Employment Injury Benefits are not currently offered

Current Social Security System Current Social Security System Current Social Security System Current Social Security System

The Social Security System is financed by: -

Contributions levied on insurable earnings up to a maximum of

$6,500 as at 1 May 2013

For the Private Sector, contribution rate of 12%

12% 12% 12% as at 1 Feb 2017

Employers – 7% Employees – 5%

For the Public Sector, contribution rate of 11%

11% 11% 11% as at 1 Feb 2017

Employers – 7% Employees – 4%

Self-employed persons pay 10%

10% 10% 10% of all declared earnings as at 1 May 2013

Key Performance Indicators Key Performance Indicators Key Performance Indicators Key Performance Indicators

Indicators Indicators Indicators Indicators 2016 2016 2016 2016P

P P P

2015 2015 2015 2015 2014 2014 2014 2014 Total Revenue (EC$M) 105.27 108.83 113.45 Total Contribution Income (EC$M) 88.73 96.68 101.87 Total Administrative Expenditure (EC$M) 11.85 12.80 9.89 Benefits Expenditure (EC$M) 121.75 114.08 105.70 Number of Age Pensioners 10,540 10,173 9,589 Insured Persons Registration 2,643 2,457 2,384 Active Insured Persons (16 – 59 years) 40,428 39,838 39,046 Contributing Self-Employed Persons 1,752 1,747 1,638 Contributing Employers 2,942 2,933 3,046 Total Assets (EC$M) 629.85 665.25 675.25

Source: ABSSB

P P P P

• - Provisional

Performance Indicators Performance Indicators Performance Indicators Performance Indicators

$78.43 $78.43 $78.43 $78.43 $88.39 $88.39 $88.39 $88.39 $98.69 $98.69 $98.69 $98.69 $113.45 $113.45 $113.45 $113.45 $108.83 $108.83 $108.83 $108.83 $105.27 $105.27 $105.27 $105.27 $95.41 $95.41 $95.41 $95.41 $100.32 $100.32 $100.32 $100.32 $112.44 $112.44 $112.44 $112.44 $115.65 $115.65 $115.65 $115.65 $126.99 $126.99 $126.99 $126.99 $133.60 $133.60 $133.60 $133.60

$- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00

2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016

EC$M

YEAR YEAR YEAR YEAR

TOTAL REVENUE vs TOTAL EXPENDITURE TOTAL REVENUE vs TOTAL EXPENDITURE TOTAL REVENUE vs TOTAL EXPENDITURE TOTAL REVENUE vs TOTAL EXPENDITURE 2011 2011 2011 2011 -

• 2016

2016 2016 2016

Total Revenue Total Expenditure

Source: ABSSB

Social Security Social Security Social Security Social Security Self Self Self Self-

• employed Provisions

employed Provisions employed Provisions employed Provisions

Self-Employment contribution became mandatory as at 1 May 2013. A self-employed person is exempted from paying contributions if such

person’s income is less than the minimum rate set by the Labour Code.

A self-employed person is not required to pay contributions in respect of

any period during which he or she is in receipt of a benefit other than survivors’ benefit.

Self-employed persons are classified into 5 classes based on the declared

earnings.

Self-employed persons can be subjected to penalties ranging from

imprisonment not exceeding three years, or a fine of $12,000 or both.

Difficult Difficult Difficult Difficult-

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to to to-

• cover Groups

cover Groups cover Groups cover Groups

Construction workers (labourers) Domestic workers Vendors Tour operators Non-affiliated (“fly-by-night”) taxi drivers and bus drivers Established taxi drivers and bus drivers Heavy equipment operators “Grass cutters” Any business with no established place of operation

Difficult Difficult Difficult Difficult-

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cover Groups cover Groups cover Groups

Administrative Procedures:

Administrative Procedures: Administrative Procedures: Administrative Procedures: -

• The legal framework providing social protection coverage for the

difficult-to-cover groups is in accordance to Sub-section 19 (1) of the Social Security Act. Cap 408.

These difficult-to-cover groups can be registered to be insured for

benefit coverage as long as said person is “sixteen years of age or

• ver and under the pensionable age; and, is gainfully occupied in

insurable employment”.

The minimum contribution base is linked to the country’s

minimum wage of EC$8.20 per hour (EC$1,420 per month) with a maximum contribution ceiling of EC$6,500.

The difficult-to-cover groups are entitled to all Social Security

benefits, as long as they qualify. These benefits are: Short-Term Benefits (Sickness, Maternity, and Funeral Grant) and Long-Term Benefits (Age, Invalidity, and Survivors).

Difficult Difficult Difficult Difficult-

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to to to-

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cover Groups cover Groups cover Groups

Incentives to formalization:

Incentives to formalization: Incentives to formalization: Incentives to formalization: -

• Domestic

Domestic Domestic Domestic Workers Workers Workers Workers: There are no fiscal or other incentives for employers of domestic workers.

Taxi

Taxi Taxi Taxi Drivers/Bus Drivers/Bus Drivers/Bus Drivers/Bus Drivers Drivers Drivers Drivers: Received some incentives to include duty free every five (5) years as well as subsidized fuel.

Vendors

Vendors Vendors Vendors: Subsidized rental fees for those vendors located at the Vendors’ Mall and the Market.

Other

Other Other Other difficult difficult difficult difficult-

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to to to-

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cover cover cover groups groups groups groups: There are no known government subsidized systems.

Difficult Difficult Difficult Difficult-

• to

to to to-

• cover Groups

cover Groups cover Groups cover Groups

Domestic Workers Domestic Workers Domestic Workers Domestic Workers -

• Most Difficult

Most Difficult Most Difficult Most Difficult-

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to to to-

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cover group cover group cover group

Domestic workers are ‘invisible’ because their work is hidden in private

• homes. Unlike other forms of employment, it is difficult to inspect a

domestic worker’s workplace in the same manner as a public workplace. Further, their work does not generate profit, so it demands little if any attention from regulators.

Legislation catering specifically to domestic workers is currently being

• considered. Further, one of the major unions has initiated steps to include

domestics workers into the pool for representation. The majority of domestic workers are women in Antigua and Barbuda.

Any planned labour law reform for domestic workers should be aligned

to critical issues and conditions within the domestic work industry such as: documentation of contractual responsibilities, protection from abuse and harassment, maternity and sick leave protection, and measures to facilitate the balancing of a domestic employee’s work life and family responsibilities.

Employers are not held accountable to fair labour standards. Hence, an

equitable economic environment is difficult to create for domestic workers.

Difficult Difficult Difficult Difficult-

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to to to-

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cover Groups cover Groups cover Groups

Domestic Workers Domestic Workers Domestic Workers Domestic Workers -

• Most Difficult

Most Difficult Most Difficult Most Difficult-

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to to to-

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cover group cover group cover group

For fear of victimization, domestic workers are not proactive in their

• wn cause to curtail discrimination and improve social protection.

Many domestic workers are excluded from access to basic leave

conditions that are guaranteed to other categories of workers.

There are usually no provisions for sickness, maternity, and

vacation leaves as prescribed by law.

The majority of domestic workers do not receive paid annual leave,

but rather, were guaranteed their job upon their return from vacation.

Although Section E of the Antigua & Barbuda Labour Code governs

the employment of women, young persons and children, it does not specifically address domestic workers.

For 2015, 587 employers remitted contribution payments to Social

Security on behalf of 890 domestic workers.

For 2016, 533 employers remitted contribution payments to Social

Security on behalf of 833 domestic workers.

The Way Forward The Way Forward The Way Forward The Way Forward

Domestic Workers Domestic Workers Domestic Workers Domestic Workers -

• Most Difficult

Most Difficult Most Difficult Most Difficult-

• to

to to to-

• cover group

cover group cover group cover group

There are five (5) specific areas that have the potential to become the

catalyst for significant changes within the domestic work industry, namely: -

1.

The formalization of employment contracts

2.

Basic employment benefits

3.

Training

4.

Education and outreach

5.

Protection of domestic workers’ rights

THANK YOU! THANK YOU! THANK YOU! THANK YOU!