Skip to playerSkip to main content
CCNTV6
  • 2 years ago

Category

🗞
News
Transcript
00:00 We have always ensured that the fund remains sustainable
00:03 with an appropriate actuarial balance
00:05 between benefit spending and contributions revenue.
00:09 And despite current challenges, we will continue to do so.
00:13 Since 2013, based on the actuarial reviews,
00:17 the fund has begun to face sustainability challenges
00:22 and the risks of reserve exhaustion.
00:25 Whether from the expenditure
00:26 of the national insurance system exceeding its income
00:29 or from its assets becoming depleted,
00:32 occasioned by our life expenditure,
00:35 which like many other countries,
00:37 has increased steadily over the last 50 years,
00:39 while birth rates have decreased.
00:42 These demographics mean that the national insurance system
00:47 is expected to pay more for an extended period.
00:50 The gap between benefit spending and contribution revenue
00:55 has widened with an aging population
00:58 and generous benefits.
01:01 We have been reviewing mechanisms to close the gap based
01:04 on many technical assessments.
01:07 We are not convinced at this time
01:10 that we should increase the rate of contributions
01:12 by employers and employees.
01:13 Still in the context of evolving worldwide standards,
01:18 we consider a higher retirement age broadly appropriate.
01:22 Through actuarial assessment, we have determined that an increase
01:26 in the retirement age by five years from 60
01:29 to 65 years will support pension adequacy
01:33 and the system's sustainability.
01:36 We are now in the process of completing consultations
01:39 with major stakeholders on the increase in the retirement age.
01:43 And we're encouraged by the progress being made
01:46 in the consultative sessions relating to an increase
01:49 in the retirement age from 60 to 65 years.
01:53 This process, including with labor unions,
01:55 is at an advanced stage of conclusion
01:58 with majority support for increasing the retirement age.
02:01 In the interim, I am heartened with the work
02:04 of the National Insurance Board on bringing
02:06 up to date the employer database.
02:09 This process with additional contributions will strengthen
02:12 the integrity of the fund.
Be the first to comment
Add your comment