Govt to review Social Security Fund guidelines
Kathmandu, December 23
After persistent complaints from employers, employees and other stakeholders regarding some provisions in the Social Security Fund (SSF) being unrealistic, the government has finally planned to review certain provisions in the SSF’s guidelines within three months. There have also been complaints that the guidelines discriminate between public and private sector employees and that participants in the fund will have to actually pay double taxes.
Moreover, stakeholders have also criticised the policy as both workers and employers seem to be reluctant to participate in the social security programme.
Kapilmani Gyawali, executive director of the Social Security Fund, said the government is going to make amendments as the fund has been receiving widespread criticism due to the lower benefits it offers and unprofitable provisions.
“We’re going to hire a group of ‘actuaries’ from abroad who will look into the issues being raised by different stakeholders and will make adjustments to the facilities that will be provided by SSF,” he said.
An actuary is a business professional who deals with the measurement and management of risk and uncertainty. The name of the corresponding field is actuarial science. These risks can affect both sides of the balance sheet and require asset management, liability management, and valuation skills.
Gyawali further said that the government was ready to amend the law after objections were raised regarding the age limit of retirement and insurance arrangements being unrealistic and the fund being discriminatory between public and private sector employees.
He said that the provision related to insurance and taxation will also be revised. “We will come up with arrangements that can be easily integrated into the fund.”
Last week, a team from the Federation of Nepalese Chambers of Commerce and Industry had also requested the government to revise and include more realistic provisions that could help attract more contributors.
Meanwhile, stakeholders have also said that most of the government and private sector associations are currently associated with the Citizen Investment Trust and the Employees’ Provident Fund and since these two organisations provide better facilities there was no point in joining the SSF.