SOCIAL PROTECTION AND FORMALIZATION NATIONAL PRESENTATION ANTIGUA & BARBUDA Geoffrey Joseph Deputy Director 15 March 2017 FOCUS AREAS FOCUS AREAS FOCUS AREAS FOCUS AREAS � Our Our Vision Vision Our Our Vision Vision � Our Our Mission Our Our Mission Mission Mission � Genesis Genesis Genesis Genesis of of Social of of Social Social Security Social Security Security Security in in Antigua in in Antigua & Antigua Antigua & Barbuda & & Barbuda Barbuda Barbuda th and th Actuarial � Key 10 th 11 th Key highlights highlights of of the the 10 th th and 11 th th Actuarial Reviews Reviews Key Key highlights highlights of of the the 10 10 and and 11 11 Actuarial Actuarial Reviews Reviews � Current Current Current Current Social Social Social Social Security Security Security System Security System System System � Key Key Key Key Performance Performance Performance Indicators, Performance Indicators, 2014 Indicators, Indicators, 2014 2014 – 2014 – – 2016 – 2016 2016 2016 � Social Social Security Security Self Self- -Employed Employed Provisions Provisions Social Social Security Security Self Self - - Employed Employed Provisions Provisions � Difficult Difficult- Difficult Difficult - - -to to to to- -Cover - - Cover Groups Cover Cover Groups Groups Groups � The The Way The The Way Way Way Forward Forward Forward Forward
OUR VISION OUR VISION OUR VISION OUR VISION � We We We We are are are are a a a a customer customer customer customer- - - -centric, centric, centric, centric, strategy strategy- strategy strategy - - - focused and focused focused focused and and and technology technology technology technology- - - -driven driven institution driven driven institution institution institution with with with with a a commitment a a commitment commitment commitment to to to to excellence excellence excellence excellence . . . . OUR MISSION OUR MISSION OUR MISSION OUR MISSION � To To To To efficiently efficiently provide efficiently efficiently provide provide provide Social Social Social Social Security Security Security Security Services through Services Services Services through through through the the the the sustained sustained sustained sustained efforts efforts efforts efforts of of of of strong strong strong strong leadership, leadership, leadership, leadership, robust robust robust robust compliance, compliance, a a highly highly- -motivated motivated and and compliance, compliance, a a highly highly - - motivated motivated and and knowledgeable knowledgeable knowledgeable staff knowledgeable staff staff staff and and and and the the prudent the the prudent prudent prudent investment investment investment investment of of of of the the the the Social Social Social Social Security Security Security Security Funds Funds Funds Funds. . . .
Genesis of Social Security in Genesis of Social Security in Genesis of Social Security in Genesis of Social Security in Antigua & Barbuda Antigua & Barbuda Antigua & Barbuda Antigua & Barbuda � Mid – to – late 1960’s � Need to provide for the social welfare of its citizen � Poor Relief Ordinance � National Provident Fund Act – 1970 � Change of Government – 1971 � Passing of Social Security Act – 11 th July 1972 � Commenced operations – 2 nd April 1973 th and 11 Key highlights of the 10 th th th and 11 th th th th Key highlights of the 10 Key highlights of the 10 Key highlights of the 10 and 11 and 11 Actuarial Reviews Actuarial Reviews Actuarial Reviews Actuarial Reviews � Deficits in each year since 2011 � All liquid investments used to meet expenditure � Pensions and benefits being paid late � Fund operating on “extreme” Pay-As-You-Go basis � No reserve funds � Contributions insufficient to meet expenditure � Extra funds supplemented by the Government of Antigua & Barbuda � Public confidence in Social Security diminished Actuary: Derek Osborne Actuary: Derek Osborne Actuary: Derek Osborne Actuary: Derek Osborne
Current Social Security System Current Social Security System Current Social Security System Current Social Security System � Legislative Framework � Utilization and Coverage � Governance and Administration � Solvency, Robustness and Sustainability � Contributions Current Social Security System Current Social Security System Current Social Security System Current Social Security System � Social Social Security Social Social Security Security Security Act Act Act Act � All employed and self-employed persons are covered for two main types of social security benefits � Short-term Benefits � Long-term Benefits � Provision of a Non-contributory Pension (1993) � Old Age Assistance � Employment Injury Benefits are not currently offered
Current Social Security System Current Social Security System Current Social Security System Current Social Security System The Social Security System is financed by: - � Contributions levied on insurable earnings up to a maximum of $6,500 as at 1 May 2013 � For the Private Sector, contribution rate of 12% 12% 12% as at 1 Feb 2017 12% � Employers – 7% � Employees – 5% � For the Public Sector, contribution rate of 11% 11% 11% 11% as at 1 Feb 2017 � Employers – 7% � Employees – 4% � Self-employed persons pay 10% 10% of all declared earnings as at 1 10% 10% May 2013 Key Performance Indicators Key Performance Indicators Key Performance Indicators Key Performance Indicators 2016 P P P P Indicators Indicators Indicators Indicators 2016 2016 2016 2015 2015 2015 2015 2014 2014 2014 2014 Total Revenue (EC$M) 105.27 108.83 113.45 Total Contribution Income (EC$M) 88.73 96.68 101.87 Total Administrative Expenditure (EC$M) 11.85 12.80 9.89 Benefits Expenditure (EC$M) 121.75 114.08 105.70 Number of Age Pensioners 10,540 10,173 9,589 Insured Persons Registration 2,643 2,457 2,384 Active Insured Persons (16 – 59 years) 40,428 39,838 39,046 Contributing Self-Employed Persons 1,752 1,747 1,638 Contributing Employers 2,942 2,933 3,046 Total Assets (EC$M) 629.85 665.25 675.25 P P P P -- Provisional Source: ABSSB
Performance Indicators Performance Indicators Performance Indicators Performance Indicators TOTAL REVENUE vs TOTAL EXPENDITURE TOTAL REVENUE vs TOTAL EXPENDITURE TOTAL REVENUE vs TOTAL EXPENDITURE TOTAL REVENUE vs TOTAL EXPENDITURE 2011 2011 - 2011 2011 - - - 2016 2016 2016 2016 $160.00 $140.00 $133.60 $133.60 $133.60 $133.60 $126.99 $126.99 $126.99 $126.99 $120.00 $115.65 $115.65 $115.65 $115.65 $112.44 $112.44 $112.44 $112.44 $113.45 $113.45 $113.45 $113.45 $108.83 $108.83 $108.83 $108.83 $105.27 $105.27 $105.27 $105.27 $100.32 $100.32 $100.32 $100.32 $95.41 $95.41 $95.41 $95.41 $100.00 $98.69 $98.69 $98.69 $98.69 $88.39 $88.39 $88.39 $88.39 EC$M $78.43 $78.43 $78.43 $78.43 $80.00 $60.00 $40.00 $20.00 $- 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 YEAR YEAR YEAR YEAR Total Revenue Total Expenditure Source: ABSSB Social Security Social Security Social Security Social Security Self Self Self Self- - - -employed Provisions employed Provisions employed Provisions employed Provisions � Self-Employment contribution became mandatory as at 1 May 2013. � A self-employed person is exempted from paying contributions if such person’s income is less than the minimum rate set by the Labour Code. � A self-employed person is not required to pay contributions in respect of any period during which he or she is in receipt of a benefit other than survivors’ benefit. � Self-employed persons are classified into 5 classes based on the declared earnings. � Self-employed persons can be subjected to penalties ranging from imprisonment not exceeding three years, or a fine of $12,000 or both.
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