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Selwyn Jehoma
Social Security » History
Most men became employees of firms – with social security coverage as from late 19th centuryThis grew significantly after 1st and 2nd World Wars
Industrialization Impact
• Social Security is money, goods, services policies that any modern and decent society makes available to its citizens in order to ensure they make ends meet.
• Social Assistance is a grant or an in-kind benefit paid for by the government from taxes
• Social Insurance is a grant paid for from savings into a fund by those who have work employed
• Private provision has grown in the absence of state provision or when state scales down
• Parallel to social security, many Anglo-American countries developed employee benefits schemes:– Savings and risk pooling schemes existed as
far back as the 1850– South Africa’s employee benefit schemes date
back to date back to 1890’s for occupational injuries
– Unemployment, maternity and sickness benefits came later in the 20’s
• Proper social security lagged behind
Child benefits
Disability or sickness benefits when work is interrupted
Pension from state and/or contributions
workers contribute: social insurance
family benefitscomplete school
Where are we?
Is this affordable? 5 million tax payers?
Old age pension and Disability CSG growthGDP share of all grants- from 1.5% to 3.4%
Partial coverage of pensions and others
Future trends in Child Support Grant
What should be done in SA?
04/19/23 Social Security and Retirement Reform IMC/IDTT
10
Middle and high income people
Pillar 3 Improve Regulation
Low and middle income
Pillar 2: National Social Security Fund Oblige everyone to contribute towards:A national pension system, UIF, Accident and work injuries and diseases and health care
Pillar 1: Social assistance for the poor
Implications1. Not a threat but a diversification of risk
2. For current financial arrangement:– Provident funds will decline – Reduce financial flow
3. New challenges:– Depending on your place in the market, space for
brokers will be reduced– Companies must innovate to compete for skills– Design new ways to become employer of choice
Implications1. A new balance will have to be found in the best
interest of all– having more income security for – A more inclusive society, – a reduction of poverty, – a reduction in equality, a more fair society, – a more certain future for all
