National Social Security Fund of Burkina Faso (CNSS)
BACKGROUND AND PROBLEM:
The National Social Security Fund (CNSS) is a public social security institution responsible for managing the social security system in favor of salaried workers and their dependents. From 2003, the CNSS introduced major changes to its regime. These include: (i) modification of contribution rates; (ii) raising the ceiling for salaries subject to contributions; (iii) raising the retirement age; (iv) improving the pensions and (v) introducing voluntary insurance for the self-employed, the liberal professions and those in the informal sector.
The improvement of benefits in the pensions branch took place in 2006 with the entry into force of Law No. 015-2006 on the social security system for salaried and similar workers in Burkina Faso. This law increases the annuity rate from 1.33% to 2% of the reference salary, without retroactive effect and in accordance with generally accepted international practice. However, since 2010, the workers’ unions have questioned this provision of the law and demand a standardization of the annuity rate of 2% over the entire career of the insured.
The Council of Ministers of May 21, 2013 thus authorized the application of the standardization of the annuity rate of 2% and an increase of 40% for the lowest pensions notwithstanding the recommendations of the 2011 actuarial study.
Despite its increases and always seeking continuous improvement of its services for the benefit of its policyholders, the CNSS and its social partners are considering, in addition to the compulsory basic scheme, the introduction of a supplementary old-age insurance to safeguard the standard of living of the policyholders in their old age, as well as for their beneficiaries.
To do this, a feasibility study for the introduction of this supplementary old-age insurance should allow the CNSS and its social partners to ensure the feasibility and financial viability of this new scheme.
The main objective of the mission is to provide technical assistance for the realization of a feasibility study for the introduction of supplementary old age insurance to the CNSS of Burkina Faso. The study aims to determine the detailed characteristics of the new retirement product to be created and to develop the necessary tools for its management.
- Design of the supplementary retirement product to be implemented. Following the realization of the pre-feasibility study, which outlines the retirement product to be created, we proposed the supplementary retirement product that best meets the realities of Burkina Faso, and carried out its technical design.
- Actuarial valuation of the new regime. Realization of actuarial projections on the assets and liabilities of the proposed supplementary pension scheme, which made it possible to propose the right starting parameters.
- Production of management tools and draft laws and decree for the supplementary retirement scheme to be created.
- Production of a roadmap for the adoption of laws and decree for the introduction of the supplementary retirement scheme to the CNSS.
The results of this study laid the groundwork for the introduction of supplementary old age insurance in Burkina Faso.