Social Security Fund Research Articles

CHANGES IN THE AGING POLICY LANDSCAPE SINCE 2020: HITS AND MISSES

Abstract Despite deep political divisions after the 2020 election, Congress passed several major statutes to address the acute economic and health fallout of the COVID-19 pandemic, including provisions that helped older adults cover large and unexpected health care costs and expanded access to home and community-based care (HCBS). States used federal funds disbursed under these statutes to strengthen the long-term services and supports (LTSS) system and respond to the COVID-19 health emergency. But as the pandemic faded into the distance, so did the impetus to address the fundamental problems that pose the greatest long-term risk to the health and economic security of older adults. This paper reviews major legislative and regulatory initiatives adopted at the federal and state level since 2020 to improve the economic security of low-income older adults, expand Medicare and Medicaid coverage, strengthen nursing home quality and the direct care workforce, increase access to HCBS, and provide greater support to family caregivers. Despite these achievements, progress has been incremental. Little has been done to fix flaws in Medicare and Social Security financing, and policymakers have yet to address LTSS financing, all of which pose major threats to the long-term financial wellbeing of older adults and their families. These issues belong at the top of the aging policy agenda and urgently call for action by the next Administration, Congress, and state and local governments.

The impact of social features on the financial sustainability of pension systems in Central and Eastern Europe and Baltic States

This paper analyses the financial sustainability of pension systems from the perspectives of labour supply, population aging, and demographic changes. The time period chosen was 1995 to 2022 and it takes into account nine countries from Central and Eastern Europe and the Baltic States. The econometric modelling techniques used are traditional linear regression, ridge and lasso regression, cross-validated glmnet models, and xboost flexible model used for the whole nine countries and also for country groups. The empirical results show that government expenditures and revenues in terms of social security funds are influenced by the demographic changes of the population that we face nowadays, are bound to the population aging phenomenon, and are dependent upon the elderly labour supply movements. The conclusions of this article reveal the practical need to reshape the financial sustainability of pension systems in all nine countries by developing a sustainable pension scheme that needs to be adjusted to the new social, demographic, and behavioural patterns of labour supply.

Unbundling Social Security from the Payroll Tax

This Article emphasizes that social security funding has contributed significantly to the shift in tax burdens from high income and wealth to low and moderate income and wealth individuals. To preserve social security as a welfare program primarily for older individuals and to ameliorate the distributional inequity of funding social security across income and wealth levels, the Article proposes unbundling of the benefit side of social security from its longstanding payroll tax funding mechanism. The Article recommends substituting a budget allocation from general revenues for current payroll tax revenue. The substitution would be accompanied by revenue replacement through limitations on both social security benefits for higher income individuals and more general, high income centric tax expenditures while increasing income tax marginal rates moderately. Modifying social security benefits from their current overinclusive, entitlement structure for all to moderately needs-based entitlement possibly freed from the constraint of the current contribution requirement that makes social security underinclusive would help provide the older population an income to facilitate dignified aging.

Assessing antimicrobial consumption in public and private sectors within the Costa Rican health system: current status and future directions

BackgroundAntimicrobial resistance is a significant global health threat. Therefore, robust surveillance systems for antimicrobial consumption (AMC) are essential to develop public health strategies. However, Latin American countries, including Costa Rica, face challenges in regularly reporting AMC data. This study aims to estimate and analyse the overall AMC in Costa Rica for 2019.MethodsThis study is a national-level, retrospective, observational, and descriptive analysis of AMC in Costa Rica from 1 January to 31 December 2019. The study followed the World Health Organization (WHO) guidelines for the Surveillance of National AMC. The Anatomical Therapeutic Chemical (ATC) / Defined Daily Doses (DDD) system was used to analyse types of antimicrobials and DDD per 1000 inhabitants per day (DID). Antimicrobial dispensation data from the Costa Rican Social Security Fund (CCSS) represented the public sector, while the private sector data was sourced from IQVIA. The analysis included data from both inpatient and outpatient sectors.ResultsA total AMC of 14.32 DID, of which 12.75 DID was within the public sector and 4.12 DID was within the private sector. Penicillins had the highest consumption nationally and in the public sector, while macrolides and lincosamides predominate in the private sector. According to the WHO-AWaRe (Access-Watch-Reserve) classification, antibiotics predominantly consumed nationally (74.7%) and in the public (83.0%) sectors are categorized under Access, whereas the private (61.0%) sector predominates the Watch category.ConclusionThis study illustrates the importance of enhancing AMC surveillance by integrating data from both the public and private sectors. The findings indicate an excessive use of “Watch” antimicrobials in the private sector. To address this issue, all sectors and regulatory authorities must play an active and supportive role, in the development of effective, multisectoral policies. The methodology employed in this study is applicable to other Latin American countries, and therefore should be utilized for future analysis AMC in this region.

Predicting Mortality Rates and Longevity Using Cains -Blake-Dowd Model

Pension schemes and annuity providers frequently guarantee their retirement payouts until the retirees' deaths. As a result of longer life expectancies and declining rates of death in old age, trends in mortality and longevity have become evident. Academicians and actuaries have been forced to concentrate their research on mortality and longevity concerns in particular as a result of this. Instead of a provident fund, the new National Social Security Fund Act Number 45 of 2013 established a pension fund that is a requirement for every employee. Annuity service providers are exposed to the longevity risk when the scheme's participants retire. For pricing and reserving, appropriate modeling tools or projected life tables are required. In comparison to deterministic models, which were based on projected present values, stochastic models allow a variety of risk causes and components as well as pertinent effect on portfolio performance. The long term mean level of Longevity has become more uncertain exposing the annuity service providers such as assurance companies and states to the risk of uncertainty after retirement. Most industrialized countries' national security systems, pension plans, and annuity providers have revised their mortality tables to account for longevity risks due to decline mortality rates and rising life expectancy. Kenya is one of the developing nations that has seen a drop-in death rates and a rise in life expectancy recently. Since developing nations choose to take the longevity risk into account when pricing and reserving annuities because such long term mean level in mortality rates declines and increases life expectancy, particularly at retirement age, pose risks to annuity service providers and pension plans that has been pricing annuities based on mortality tables that do not take these trends into account. The stochastic aspect of mortality was ignored by earlier actuarial models used to estimate trends. The actuary will therefore likely be interested in knowing how the future mortality trend utilizing stochastic models affects annuity pricing and reserve. Demographers and actuaries have since employed a variety of stochastic methods to forecast mortality while examining a variety of stochastic model ranges. The CBD stochastic model, which was the first to take longer life expectancies into account, is now extensively used, and a number of expansions and adjustments have been suggested to stop the major characteristics of mortality intensity. The CBD model, developed by Andrew Cairn, David Blake, and Kevin Dowd, is being used in this study to fit mortality rates, forecast mortality trends, using least square method and then calculate projections for life expectancy. Regarding the longevity risk, we take into account the possibilities of computing annuity benefits by connecting the benefits to actual mortality and calculating the present value on annuities. The results of the study showed that, the CBD model can be used to forecast mortality rates where parameters estimating the CBD model are performed using the bivariate random walk (drift).

The contribution of addictovigilance data to the French medical cannabis experimentation

In France, cannabis is the most widely used illicit psychoactive substance. Recently, a new market for cannabidiol (CBD) products has emerged called "cannabis light" or "cannabis well-being". In parallel, the experimentation of medical cannabis began on March 26, 2021, for specific indications. Some clinical effects of cannabis have been put forward for medical purposes; however, these are counterbalanced by adverse events (AEs). Data from addictovigilance and international literature on the risks associated with non-medical cannabis use have helped establish exclusion criteria for patients at risk of complications when using medical cannabis (such as those with psychotic disorders, severe cardiovascular, renal, or liver conditions). This also enables the early identification of AEs. Cannabis-based medications are composed of cannabidiol (CBD) and/or delta-9-tetrahydrocannabinol (THC) in varying concentrations. We aimed to present the contribution of the addictovigilance data regarding cannabis-related reports to the ongoing French experimentation on cannabis used for medical purposes, to anticipate potential adverse drug reactions in the treated patients. Among the 3164 patients included in the French experimentation, 1186 of them presented at least one AE. Some of the AEs reported in addictovigilance surveys on non-medical cannabis and CBD were observed during the experimentation of medical cannabis such as cardiovascular AEs (myocardial infarction, strokes, transient ischemic attack), psychiatric AEs (suicidal idea and attempt, depression), worsening of epilepsy, cognitive and/or sedative disorders. Given the potential for pharmacodependence of cannabis medications, it seems important for clinicians to gather the addiction history of their patients (past or present), particularly the use of non-medical cannabis (illicit) and non-medical CBD, to prevent and early detect any risk of abuse. The generalization of the use of medical cannabis was adopted and defined in the 2024 Social Security Financing Act. These medications will be accessible to patients by medical prescription for defined indications. Addictovigilance as well as pharmacovigilance monitoring is crucial in this context of continuing to make medical cannabis available in France. Adverse effects of interest will need to be monitored in particular, including neurological disorders (epilepsy exacerbation, cognitive disorders), psychiatric disorders (substance use disorder, suicidal behaviour), and cardiovascular disorders as well as any unexpected AEs. Close addictovigilance monitoring contributes to increasing the awareness of professionals involved in the clinical management of patients treated with medical cannabis.

Do political connections pay? Evidence of corporate payroll tax planning in Chinese firms

ABSTRACT Drawing on a dataset of listed Chinese firms, our study reveals a notable reduction in effective payroll tax rates for politically connected firms. Using China’s anti-corruption campaign as an exogenous shock, our difference-in-differences (DID) analysis indicates a significant increase in the effective payroll tax rates of politically connected firms after the campaign. Well-developed legal institutions, social security fund holdings, and high-quality external audits mitigate the effect of political connections on a firm’s effective payroll tax rates. These results are instrumental in regulating firms’ payroll tax payments from an informal institutional perspective.

The Knowledge and Application of Economics in Healthcare in a High-Income Country Today: The Case of Belgium.

Healthcare is a huge business sector in many countries, focusing on the social function of delivering quality health when people develop illness. The system is essentially financed by public funds based on the solidarity principle. With a large financial outlay, the sector must use economic evaluation methods to achieve better efficiency. The objective of our study was to evaluate and to understand how health economics is used today, taking Belgium as an example of a high-income country. The evaluation started with a historical view of healthcare development and ended with potential projections for its future. A literature review focused on country-specific evaluation reports to identify the health economic methods used, with a search for potential gaps. The first results indicated that Belgium in 2021 devoted 11% of its GDP, 17% of its total tax revenue, and 30% of the national Social Security Fund to health-related activities, totalizing EUR 55.5 billion spending. The main health economic method used was a cost-effectiveness analysis linked to budget impact, assigning reimbursable monetary values to new products becoming available. However, these evaluation methods only impacted at most 20% of the money circulating in healthcare. The remaining 80% was subject to financial regulations (70%) and budgeting (10%), which could use many other techniques of an economic analysis. The evaluation indicated two potentially important changes in health economic use in Belgium. One was an increased focus on budgeting with plans, time frames, and quantified treatment objectives on specific disease problems. Economic models with simulations are very supportive in those settings. The other was the application of constrained optimization methods, which may become the new standard of practice when switching from fee-for-service to pay-per-performance as promoted by value-based healthcare and value-based health management. This economic refocusing to a more constrained approach may help to keep the healthcare system sustainable and affordable in the face of the many future challenges including ageing, climate change, migration, pandemics, logistical limitations, and financial instability.

Research on the Effects of Corporate Social Insurance on Total Factor Productivity

Social insurance is an insurance arrangement that the country or the government collects from some specific groups, such as enterprises, through compulsory means and then sets up social security funds to guarantee the basic living standards of specific groups of society, including the old, weak, sick, disabled, pregnant and temporarily unemployed. It is a legal responsibility and obligation that enterprises or employers must undertake and in the financial aspect, it is a rigid labor cost besides the wages. In China, enterprise is the main object that should afford the payment of social insurance and its contribution rate is higher than the international level, followed by some negative effects. This article prefers to study the correlation between corporate social insurance and TFP and find a reasonable range of the contribution rate based on the other researchers’ data and viewpoints. It may also provide some possible suggestions to the governments to decrease the burden of firms and ensure the development of a welfare security system.

Reconstruction of Death Insurance Regulations for Non-Wage Workers and the Sustainability of the Death Social Security Fund

This journal explores the reconstruction of death insurance regulations for workers who are not wage recipients, aimed at maintaining the sustainability of the death social security fund in Indonesia. The background of this study stems from the challenges faced by non-wage workers in accessing adequate social security benefits, particularly in the event of death, which is a critical aspect of social protection. The objective of the research is to evaluate the current regulatory framework and propose reforms that ensure equitable access and sustainability of the death benefit program for all workers, regardless of their wage status. The study employs a qualitative research method, utilizing legal analysis and case studies to assess the effectiveness of existing regulations and identify gaps that hinder the optimal functioning of the death insurance system. The results indicate significant disparities in the protection provided to wage and non-wage workers, highlighting the need for a more inclusive approach. The proposed regulatory reconstruction emphasizes the importance of expanding coverage, enhancing contributions, and improving the management of the social security fund to ensure long-term sustainability. The conclusions drawn from this research underscore the urgency of regulatory reforms that align with the principles of social justice and financial viability, ensuring that all workers, particularly those who are non-wage recipients, are adequately protected under the death social security program. This study provides a roadmap for policymakers and stakeholders to address the existing challenges and strengthen the social security framework in Indonesia.

O PLANEJAMENTO TRIBUTÁRIO DO PRODUTOR RURAL PESSOA FÍSICA: UMA ANÁLISE SOBRE A EVASÃO FISCAL

The agribusiness is one of the most relevant sectors in the economy. In 2022, it represented 24.3% of the Brazilian GDP. Due to its complex production chain, the stage within the gate is essential, as it represents rural activities focused on agriculture and livestock farming. In these activities, rural producers make crucial decisions related to plant and animal production and the allocation of resources for these activities. The general objective of this study is to present tax planning for individual rural producers within the gate as a strategy to avoid the hypothesis of tax evasion. To achieve this, the specific objectives are to conceptualize tax planning applied to individual rural producers, present the strategic use of tax planning for individual rural producers within the gate, and analyze tax evasion by individual rural producers. The methodological approach is based on logical-semantic constructivism, being a qualitative study with bibliographic, legal, and documentary research as instruments. As results, tax planning, or fiscal avoidance, was conceptualized as a strategic tool that uses legal means to reduce the tax burden. As a tool for individual rural producers, it requires continuous effort for its full implementation, as it is embedded in the complex scenario of sector management and taxation. The study also presents tax evasion considering the incidence of Income Tax (IR), Rural Territorial Property Tax (ITR), Circulation of Goods and Services Tax (ICMS), Social Integration Program (PIS), Contribution to Social Security Financing (COFINS), and Rural Worker Assistance Fund (FUNRURAL) on individual rural producers and their ancillary obligations, highlighting the Digital Cash Book of the Rural Producer (LCDPR), eSocial, and EFD-Reinf.

NSSF Social Health Insurance Benefit (SHIB) and Health Care Services: Accessibility and Availability in Tanzania

This study is about “Social Health Insurance and accessibility of health care services through National Social Security Fund (NSSF) Health Insurance service in Kinondoni Municipality. The focus of this study was on the ease of accessing health services using the NSSF health insurance, and the beneficiaries’ awareness level since people knew about NHIF and ICHF only. The objective of the study is to examine the accessibility of Social Health Insurance Benefits on health care service to people at Kinondoni Municipality. The study used a qualitative research approach to gather and analyze data from informants. In-depth interview was used to capture information from the key informants; observation was used to supplement and understand information gathered from the perspective group studied. This study used conventional theory to signify that any additional health care that consumers purchased through insurance coverage was not worth the real cost of producing it. The results indicated that Health Insurance users have failed to use it due to its accessibility and ignorance of community members and insufficient funds released by the National Social Security Fund (NSSF) to cover all the services required by their customers. This paper recommends that it is important to maintain the quality of healthcare services that NSSF receives from its customers. Also, NSSF should be accessible and reliable to all its customers.

Aspects of the Informal Economy that Influence Voluntary Contributions to Social Security Fund

The study explored the factors within the informal economy that drive voluntary contributions to social security funds, presenting findings across three key attributes: economic, social, and institutional. Voluntary contributions were evident in all three associations studied. Economic incentives, such as loans and cash assistance during sickness and death, motivated members to contribute willingly. Additionally, the allowance for small contributions during regular meetings further facilitated participation. The study found that these meetings fostered member engagement and provided social benefits. Regularly scheduled meetings, as stipulated in the associations’ constitutions, helped to organize and structure the associations. The frameworks, including rules and regulations, were aligned with national-level associations, with leadership ensuring compliance with laws and regulations, such as those governing the bodaboda association.

Voluntary Contributions to Pension Schemes: A Study Among Actors in the Informal Economy in Tanzania

The research delves into the participation of informal economic actors in voluntary contributions to pension schemes. It sheds light on the difficulties faced by the Social Security Fund in reaching out to informal actors regarding membership and voluntary contributions. The study investigates the operations and strategies employed by informal social organizations, such as the bodaboda association, food vending network, and fishing group, to encourage members to contribute voluntarily. Through qualitative methods, interviews with pension scheme participants were conducted to comprehend the initiatives aimed at including excluded individuals, particularly those engaged in the informal economy. Following the NSSF Act 2018 revision, there is no alternative arrangement to provide coverage for informal workers besides the formal social security. This study contends that excluding a significant portion of the population from pension schemes limits social services in Tanzania. Informal economy actors willingly contribute to informal social organizations. The contribution assists in addressing the challenges associated with irregular incomes. It was observed that the administrative and regulatory structure designed for the formal sector is not conducive to informal actors, mainly due to bureaucratic processes related to contributions and provisional pensions.

Temporary wage subsidies and post-COVID re-employment in Morocco: a regression discontinuity approach

ABSTRACT This paper aims to evaluate the causal effect of a temporary wage subsidy scheme implemented in Morocco during the COVID-19 crisis. It exploits a discontinuity in the eligibility condition of this subsidy, which is the number of days reported before job loss, to identify its causal effect on beneficiaries’ unemployment duration and re-employment probability by using the regression discontinuity method based on administrative data from the National Social Security Fund (CNSS). Our findings indicate that this subsidy has reduced the duration of unemployment and improved the probability of re-employment of beneficiary employees. However, they also show that these positive effects seem to have been less pronounced among those most excluded from the labour market, namely women and young people.

On the financial sustainability of social security pension fund in Macao: a simulation analysis

This paper constructs a simple simulation model to assess the financial sustainability of the Macao Social Security Fund (FSS). This model takes into consideration the future demographic structure of Macao and some key parameter settings of the FSS to project the balanced contribution necessary to close the financing gap. The simulation results show that the projected contribution (or balanced contribution) is affected substantially by different funding scenarios and pension benefits plan of Macao FSS, and different economic growth hypotheses of Macao. In most occasions, the balanced contribution in the next two decades is far more than the current status quo, suggesting that the financial sustainability of Macao FSS is questionable. Several measures are proposed for Macao SAR government to close the financial gap and maintain the sustainable development of the Macao FSS.

Using Balanced Scorecard to Evaluate Overall Performance of Social Security Fund in Benghazi – Libya

The study aims to evaluate overall performance of Social Security Fund in city of Benghazi – Libya. The study population included the employees at Social Security Fund at East Benghazi branch for the period from February 2024 to March 2024. The data for this study were collected by distributing a questionnaire form on a random sample of the study population. The study has only one variable balanced scorecard with its perspectives (Financial, Customer, Internal Processes and Learning and Innovation perspective). The Statistical Package for Social Sciences (SPSS) was also used to analyze the data obtained. Results showed that there is a high percentage using of all perspectives of the balanced scorecard in the Social Security Fund East Benghazi Branch, In addition, the results showed that there are no statistically significant differences between the averages of the respondents’ responses regarding the degree of using the balanced scorecard as a tool to evaluate the overall performance of the Social Security Fund East Benghazi Branch, due to personal data (gender, age, qualification, years of service and job title). The study suggested that supporting and adopting the balanced scorecard as a tool for evaluating the overall performance of the Social Security Fund East Benghazi Branch, and need to enhance interest in using the perspectives of the balanced scorecard as a tool for overall performance evaluation.

Determinants of financial performance of pension funds in Tanzania: The case of national social security fund

This study was set to examine the determinants of financial performance of pension funds in Tanzania. According to literature millions of the people under the globe depend on the pension funds as their principal sources of income at their retirement age. This study adopted a descriptive design to examine the determinants of financial performance of pension funds in Tanzania. The study uses regression analysis approach to examine the effect of determinants on financial performance of pension funds. Data were collected from National Social Security Fund (NSSF)’s financial statements for the period from 2005 to 2022. Different tests were employed such as normality test, heteroscedasticity test multicolliniality test and autocorrelation test in multiple regression modelling. The findings from this study revealed that investments and contribution density have a positive relationship to return on assets. However, the age of the contributors has depicted a weak and insignificant relationship to the return on assets of the pension fund under investigation. Therefore, it is recommended that the pension funds have to put more efforts on its investments as well as contribution density which are key contributors to the financial performance of pension funds in Tanzania.

The Beneficiary's Perception of their Awareness of Delay in Payment in Social Security Benefits in Tanzania

The study investigates beneficiaries' perceptions of their awareness of social security benefit delays, the relationship between employers' responsibility and social security benefit delays, and the effects of persistent NSSF bureaucracy on social security benefit delays in Tanzania. An explanatory study design was employed in this study with the use of a mixed quantitative and qualitative approach. The study included 150 NSSF customers and 5 key informants from employers. Data collection was conducted using a questionnaire and interview guide, respectively. This study examined NSSF beneficiaries' perceptions in Tanzania regarding delays in social security benefit payments. It reveals that a substantial proportion of customers attribute delays to employer actions, such as failures in timely contributions and inactivity in following up. The study underscores shared responsibility among customers, employers, and the system. It is concluded that addressing customer views through increased communication, employer engagement, and streamlined processes is critical for improving NSSF system efficiency and customer satisfaction. The study recommended that to improve the efficiency of benefit payments within Tanzania's National Social Security Fund (NSSF), it is advised to increase employer engagement and education, strengthen communication with stakeholders, revise policies to hold employers accountable, streamline bureaucratic processes, modernize operations, and investing in employee training

The impact of Social Security Fund shareholding on corporate ESG performance: evidence from China

The impact of Social Security Fund shareholding on corporate ESG performance: evidence from China