SSC’s revenues soar, surpluses transferred to the SSIF

(File photo: Jordan News)
AMMAN – On Wednesday, the General Director of the Social Security Corporation (SSC), Mohammad Al-Tarawneh, said that the corporation’s revenues exceed its expenses, and the surplus is then transferred to the Social Security Investment Fund (SSIF), Al-Mamlaka TV reported.اضافة اعلان

Tarawneh explained that the surplus “will continue for at least 10 years, which means that we will achieve this surplus until at least 2033,” indicating that the surplus is “the first line of defense, which is exceeding our revenues over our expenses, and we are still entrenched behind the first line of defense.”

“The continuity of the SSC in the long run is a red line that the Jordanian state cannot abandon under any circumstances,” added Al-Tarawneh.

He explained that “the second line of defense is still far away, which is the returns on investment on the assets invested through the SSIF,” and said that “the assets now amount to JD15 billion and will reach about JD22 or 23 billion by 2033.”

“There is no fear for the future of social security,” he added

Al-Tarawneh said that there is “no fear for the future” of the SSC, explaining that the corporation “does everything in its power to maintain its continuity to remain a support for the Jordanian worker while he is at work and after his retirement.”

On December 25, 2023, the World Bank predicted in the Economic Observatory report that the current financial surplus of the SSC will turn into a deficit within ten years, or about twenty years if the return on investment is considered.

According to a report by the World Bank, the SSC’s share of the public debt has gradually increased to about 20 percent of the total guaranteed public debt, equivalent to about 22.6 percent of GDP in 2022. The bank added that this will “limit” the corporation’s ability to absorb more government debt and eventually turn it into a net seller of that government debt.

In response, Tarawneh pointed out that the study is a “routine periodic” study that is no different from periodic studies conducted by the corporation every 3 years under Article (18) of its law.

He confirmed that “despite the gradual decrease in the financial surplus of the corporation due to the increase in the number of retirees compared to the number of subscribers, the corporation achieves appropriate investment returns on its assets, which amount to 15 billion dinars, which enhances its financial position,” indicating that the decrease in the financial surplus is expected and does not require concern due to the presence of other sources of income represented by investment returns on assets on the one hand and the base of the same assets on the other hand.

Tarawneh added that the corporation is conducting the eleventh periodic study under Article (18) of the Social Security Law by conducting the study every three years, expecting its results to appear during the second half of this year, and publishing them with full transparency and clarity.

Regarding the impact of early retirement on the SSC, he said that the periodic studies conducted by the corporation every three years take into account the impact of early retirement on the Social Security Corporation, whether for public sector workers or private sector workers, clearly stating that “we do not prefer early retirement because of its negative impact on early retirees because they retire on low salaries, in addition to its negative impact on the corporation.”

Regarding future amendments to the Social Security Law, Al-Tarawneh explained that “at the SSC, we read our lesson well, and we conduct all the necessary periodic studies, and in light of that, we will take any necessary and necessary reforms, including amending the law if necessary.”

Tarawneh concluded his speech by saying that the SSC was created to remain to fulfill its mission for the current generation and future generations, adding that the corporation will continue its work with all sincerity, honesty, and transparency in the service of the Kingdom.

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