1. Social Security: Past Lessons, Future Challenges
Letlhokwa George MPEDI
7 September 2017

2. Outline Introduction Reforms and extension of coverage
Future challenges
Concluding observations

3. Introduction

4. Social security system1 2
Apartheid
Democracy
Racial, gender and geographic inequalities
Fragmented social system administration
Exclusion and marginalisation
Constitutional values: human dignity, equality, and non- racialism and non-sexism
Right of access to social security
Internal and external limitation 3 4
Contingencies covered
Main schemes / measurers
ILO’s 9 classical risks: i.e. medical care, sickness, unemployment, old age, occupational injuries and diseases, family, maternity, invalidity and survivors’ benefits.
Well developed social security system for a developing country.
Non-contributory: means-tested, tax financed and categorical
Contributory: public and private schemes
Informal coping strategies: kinship-based and community- based

5. Reforms and extension of coverage

6. Implemented, planned and debated interventions1 2
Social assistance
Social insurance
Old Age Grant: Age of eligibility equalised at 60 years.
Child Support Grant: Extended up to the age of 18 years.
Social assistance: Granted to non-citizens with permanent residence status and refugees.
Taking social grants to deep rural areas through ICROP.
Alternative forms of identification in support of grant application.
Social grants amounts adjusted almost on an annual basis to protect against inflation.
There are plans to extend the child support grant from 18 years to 21.
The universalization of the Child Support Grant and Old Age Grant debated.
Unemployment insurance: Coverage extended to, for example, civil servants as well as domestic, seasonal and taxi sector workers.
National Health Insurance: Revised white paper published in June 2017.
Cabinet supported proposals on mandatory contributions for retirement, death and disability benefits and the establishment of a single National Social Security Fund.
It has been proposed that a no-fault road accident benefit system premised on social security principles be adopted.

7. Key drivers of social security reforms1 2
Policy-makers
Individuals and NGOs
Comprehensive social protection
Legislative amendments
Political will
Advantage:
Can establish committees/commissions and identify issues and possible solutions.
Disadvantages:
Implementation of plans or recommendations are not always (rapidly) implemented.
Policy-makers often struggle to speak in one voice.
Enforcement of social protection (related) rights: (extension of access to social assistance to permanent residents; ensuring that the right to just administrative action is respected by those responsible for the administration of social security).
Disadvantages:
Court action involves financial resources and know-how which are not always available to most of the socially excluded and vulnerable.
Court decisions have an unfortunate consequence of shaping social policy in a piece-meal fashion.

8. Future Challenges

9. Persistent socio-economic difficulties
Inequality
Exclusion and marginalisation
Urban and rural divide
High unemployment
Skills deficit
Informal sector
Poverty
Labour market issues
Corruption and fraud
Poor Governance / administration
Institutional inefficiency.
Accountability
Litigation
Poor levels of service
Unscrupulous service providers
Administrative costs
Insolvency

10. Affordability and sustainability
Small fiscal base (very few tax- payers)
Widespread poverty (large number of (potential) beneficiaries)
Prevention and (re-)integration mechanisms are essential
Few persons with contributory capacity
Large number of (potential) beneficiaries
Lack of statutory duty to participate
Prevention and (re-)integration mechanisms are critical
Social Assistance
Social insurance
Informal coping strategies
Private insurance
Provide insufficient protection.
Unreliable, inconsistent and unstable.
Susceptible to external shocks.
Vulnerable to a variety of challenges such HIV/AIDS, urbanisation and migration
Strengthening informal coping strategies is vital
Generally unaffordable and/or unsuitable for low income earners
Appropriate private insurance products are indispensable

11. Legislative deficits and possible solutions
Plethora of dispute resolution mechanisms and institutions
Laws not accessible
Proliferation of laws and regulations
Conflict between various laws
11 languages.
Too legalistic.
No direct legal duty to inform the public about rights and duties.
Social security laws not codified.
Cele case.
Codification of social security laws necessary.
Speedy resolution of social security disputes.

12. 1 2 3 Other challenges Closing the social security loop
Broadening coverage
Prevention
Compensation
(Re-)integration
Social insurance schemes:
Social insurance-type schemes (self-employed and informal sector workers).
Commercial insurance products targeted at specific categories of excluded people.
Welfare funds.
Social assistance: scope of coverage and value of benefits.
Introducing universal schemes
Combining universal benefits with (other) tax-financed benefits or services
Improving the administrative and institutional efficiency (integrated agency?) 3
Trade union role and involvement
Organising the informal sector
Social security in collective bargaining
Social security reform matters

13. Concluding observations

14. 1 2 Legal entitlement Reforming the system
Social security is a fundamental right.
Right and not a privilege.
Social security legislation must be accessible, effective and predictable.
Social security monitoring and enforcement mechanisms must be accessible, operational and efficient.
Guiding principle: Social security system should be sustainable, reliable and relevant/appropriate for local context.
Reforming a social security system is not a ‘one man / department job’.
There are different role players (e.g. workers, policy-makers, non-governmental organisations).
Role players may at time operate as opponents (but this is how it should be).
Social security reform is on-going, progressive and influenced by a variety of factors (e.g. political, economic and social dynamics).