World Bank Support for Pensions

Size: px

Start display at page:

Download "World Bank Support for Pensions"

Basil Anthony
8 years ago
Views:

1 World Bank Support for Pensions Mark Dorfman, World Bank Social Protection Conference Abidjan, June

2 Outline 2 Identification system assessment Social security analytical assessment tools 2

3 What are approaches to increasing coverage (for informal workers & retirees) Social Insurance Micro-savings Social Assistance Subsidies for the poorest incl. through a match Savings/Ins. Instruments -Old Age, Disability, Survivors Health Insurance Mobile Payments & Micro-Savings Elderly Assistance Assistance to the Poorest Identification Data/Account Management Payments 3 3

4 Harnessing the ID system for SP Program specific Ensure uniqueness Whether voting, banking, civil service payroll, or paying pensions or cash transfers, it is crucial to ensure that the individual in question is unique Authentication Ensuring that the individual making the transaction (opening an account, taking out a loan, receiving a cash transfer or subsidized good or service) is the right one System-wide Linking databases and cross-checking information A unique common identifier allows cross-checking across databases 4

5 Program specific: same delivery processes needed, starting with how people are identified Transactions (delivery of food, medical services, cash, payment of premia) Potential ID problems Fake delivery of benefits Inaccurate reports Eligibility/enrolment Identification 5 Ghosts Duplicates Management information system Leakages, corruption

6 Authentication: ID-transaction nexus Security Least Manual verfication Some form of ID is shown to the agent/official and may or may not be recorded No electronic record generated at point of transaction What you have Electronic Card/SIM/voucher read by POS and e-record created Off-line or on-line What you have and know Card/SIM plus PIN Off-line or on-line Most 6 What you have and what you are Combination of above Card plus biometric verification Off-line or on-line

7 Indian RSBY functional ID Rollout: 2008 Cost: about $2-3 a head

8 Integration of different processes Program/ Process Identification Registry Eligibility determination Enrolment Transaction Program 1 Program 2 Program 3 Program 4 Program 5 Program/ Process Identification Registry Eligibility determination Enrolment Transaction Program 1 Program 2 Program 3 Program 4 Program 5 8

9 Analyzing Identity Systems Accessibility Robustness Integration Legal Protection & Transparency Extent of coverage of entire population Inclusion metrics How accessible it is to every individual How costly it is Are there barriers to certain groups? Universally available at negligible cost? Resiliency of the system to fraud (uniqueness of identity), duplication of credentials & security breaches Identity authentication post enrollment Data quality Do they contain the right data to perform their function? Interoperability of identity across multiple applications (can a register provide identity for another application) Eg can the NPR provide identity for SP programs? How easy it is to system integrate the register into other applications State of maturity of law under which the register operates Privacy, data protection and protection of other rights. Capacity of responsible organizations to enforce compliance Transparency of ID practices ispa: Assessment tool and methodology developed in cooperation with 16 international organizations (World Bank, ILO, UNICEF, UNDP, etc) primarily focused on fitness of registers for SP purposes 9

10 Identity Systems Analysis Figure 4 Voter card from the 2010 elections. Figure 6 The detailed identity enrollment form for the CNAM (top). The president of the republic being enrolled using the 2-finger at a time procedure (bottom). 10 Figure 7 Using mobile devices to authenticate the identity of the CNAM card holder through the Datamatrix 2D barcode.

11 Outline 11 Identification system assessment Social security analytical assessment tools 11

12 Assessment Tools PROST Baseline. Long-term projections of financing gap for existing schemes + replacement rates for current and future retirees Reform scenarios. Longterm projections financing gap + replacement rates for parametric and/or structural reforms Outputs to simulate other instruments (social pensions, voluntary savings) APEX Individual level benefits across instruments + for different income groups. Individual replacement rates Replacement of average wage Pension wealth ADEPT-SP & ASPIRE DATABASE Elderly welfare Elderly poverty Co-residence Elderly income generation Comparisons of welfare, poverty across elderly, nonelderly & household types. WB Database & External X- Country Data Cross-country comparisons Demographics Coverage Adequacy Affordability Sustainability

13 The Pension Tool-Kit PROST Pick a Language Load Input File APEX Output Check Inputs Produce Output Print Output Sheet Print Output Workbook Diagnostic Assessment Tools International Bank for Reconstruction and Development/World Bank Quit ADEPT Input

14 ASPIRE DATABASE

15 Examples of World Bank Engagements in Pensions and Social Insurance in SSA Kenya Support in the est. of funded public sector pension scheme, continued work on expanding coverage informal sector workers, continued support for pension regulatory authority. SPL support for broader social security reforms. Tanzania Pension Reform Operation under development. PROST modeling of 5 social security funds and implications of reforms undertaken. Prior analytical reports. Uganda Support for pension regulatory authority URBRA. Modeling of fiscal costs public sector pension reform. Support for broader social security reforms. Rwanda On-going support for central bank (BNR) in capacity as pension regulator. Pension Act, covering mandatory and private schemes recently passed. Financial inclusion team providing support for pilot informal sector pension scheme. SPL support for broader social security reforms. Lesotho Support for central bank in capacity as pension regulator. Draft Pension Bill currently under development to cover previously unregulated occupational pension schemes. On-going project for non-contributory pension scheme. Malawi Support for Central Bank as pension regulator (2011 Pension Act). Support from MOF finance to establish public sector pension scheme requested. Zimbabwe SPL project on social security reform. Mozambique Review of pension sector. Proposal for capacity building for pension and insurance sector regulator (ISSM) and to help establish public sector pension scheme. On-going project on broader social security reform. DRC Support for public sector pension scheme and retirement provision. Togo Ghana PROST reviews of main pension funds. Governance reviews of pension regulator (NPRA) and social security fund (SSNIT).

16 And we would like to work with you 16

Pensions Core Course Mark Dorfman The World Bank. March 7, 2014

PENSION PATTERNS & REFORM CHALLENGES IN SUB-SAHARAN AFRICA Pensions Core Course Mark Dorfman The World Bank Slide 1 Organization 1. Design summary 2. Challenges 3. Design reform principles 4. A process