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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