The following guidelines are organized in seven parts:
Part A, Governance, covers definition of the mandate, mission and organizational structure of the contribution collection and compliance system.
Part B, Strategy, assists in defining aspects that are strategic for accomplishing the mission on contribution collection and compliance.
Contribution collection and compliance systems comprise different activities. Some concern matters of institutional organization, policy and strategy, while others focus on contribution collection operations and compliance enforcement. In turn, the involved actors consist mainly of the institutions responsible for collecting social security contributions and of different categories of contributors.
These guidelines are intended to cover all the key components of a contribution collection and compliance system. Some are necessarily general, such as those covering the mission, strategy, communication, etc., and could be applied to other social security contexts. But others are quite specific to contribution collection and compliance:
These guidelines are part of the ISSA project on Coverage Extension and Compliance and Contribution Collection. One of the goals of the project is to address the complexities of implementing an effective and efficient contribution collection and compliance system with a view to identifying solutions and sharing the lessons learnt. The aim of these guidelines is to provide a high-level reference point for the management of contribution collection and compliance activities in institutions that carry out social security functions.
Contribution collection and compliance constitutes a core function within social security systems. It plays a key role in attaining the financial sustainability of the overall system. The timely and full payment of contributions by and on behalf of insured persons is necessary if they are to achieve the benefits to which they are legally entitled. The sustainability of social security is more than a simple issue of financial sustainability, however, and involves ensuring its social and political sustainability.
In recent years, several issues such as environmental evolution, uncertainty about future, costs increase, expansion of the organizations and legal constrains have made the organizations to change their paradigm. In this regard, the preliminary idea of outsourcing the social security services was introduced by the Iranian Social Security Organization (ISSO) in 1995 in order to prevent the expansion of executive sectors of the ISSO, decreasing the administrative and staffing costs, facilitating and accelerating the insured and employers affairs to increase the social partners satisfaction.
As part of the Social Security establishment, it is a statutory requirement that every qualified employee is to be registered by a registered and qualified employer. Apparently, there are still employers who fail to register their employees. The failure by employers to register their employees will result in the non-coverage of the employees. The unregistered qualified employees are unfairly deprived of any coverage of social security schemes and benefits in the event they become unfit to work or even worst if they are suffering from permanent disability or invalidity.
Improving the data accuracy and simplifying the process of registration for the employers and their insured persons are always taking consideration by Public Authority for Social Insurance. Previously , Public Authority for Social Insurance was completely depending on the information submitting by the employers for new registration or updating information related to their employees , which has not achieved the accuracy of the required information.
The Fiji National Provident Fund (FNPF) is mandated by law to collect compulsory contributions from the employers for the retirement savings of all workers in Fiji. The employer pays 18% of which 8% is deducted from the employee’s salary. Employers are required to submit the contribution details on a monthly basis to the FNPF. Prior to 2016, these monthly contribution schedules (CS) were physically submitted and posted to member accounts manually. This process posed a number of challenges for the Fund.
