Jordan's Social Security Fund Shows Stable Financial Position, Reforms Needed

Alanbatnews -

Jordan's Social Security Corporation (SSC) has released its 11th actuarial study, revealing a generally stable financial position for its managed insurance funds, particularly in areas such as occupational injuries, maternity, and unemployment.

However, the study also underscores the necessity for legislative reforms to ensure the long-term sustainability of the social security system, particularly concerning old-age, disability, and death insurance.

The SSC highlighted that the study, conducted every three years, serves as a crucial tool for evaluating the financial health of the institution and its long-term sustainability.

The study indicates that the first break-even point, where direct insurance revenues from contributions equal insurance expenditures, is projected for 2030. A second break-even point is anticipated in 2038, when annual insurance revenues and investment returns may become insufficient to cover required insurance expenses if investment returns do not improve.

The report identifies early retirement, insurance evasion, and demographic pressures, including rising life expectancy and declining fertility rates, as key factors contributing to rising old-age, disability, and death insurance expenses.

The SSC emphasized that early retirement remains a significant challenge, with retirees under this scheme representing a high percentage of the total, thus straining insurance resources. Data indicates that early retirees currently constitute 64% of all retirees.

The corporation also stressed the importance of combating insurance evasion and expanding coverage to workers in the informal sector to promote social justice. The study revealed that 22.8% of workers in Jordan's organized labor market are not covered by social security.

To address these challenges, the SSC plans to implement reforms to the Social Security Law, aligning it with demographic shifts and ensuring the system's sustainability for future generations. The corporation reaffirmed its commitment to transparency in disclosing actuarial and financial indicators to the public.