Labour market supply and demand data is published and monitored to anticipate needs and send the appropriate signals to participants early.

The competent institutions ensure that benefits are adequate and provide an appropriate income to jobseekers, permitting active job-searches while avoiding unemployment traps (i.e. lack of financial gain in the case of the return to work).

To achieve an effective return to work, the return-to-work process begins at the initial stage of an accident, illness or chronic health condition, as soon as is medically feasible.

Productive relationships are cultivated with national, regional and local networks which have potential impact in the return-to-work process, and there is a strategy in place for maximizing the opportunities they offer the return-to-work programme.

Achieving and maintaining service quality is a management philosophy. It requires structure and form, which can be achieved through a service quality framework. A service quality framework is based around the higher order goals of the social security system, which include:

This part describes the basic elements that should be in place to enable social security institutions to develop workplace health promotion activities:

• Legal framework;
• Definition of the role of the social security institution;
• Structures for workplace health promotion.

The social security institution ensures that there are adequate resources to conduct a health needs assessment and that responsibility for performing it is clearly assigned.

The institution promotes and supports good practice in workplace health promotion in its client enterprises/organizations.

Assumptions used for a valuation of a social security scheme are sufficient to value the scheme in accordance with its financing objectives and consistent with the overall socio-economic environment of the country. The development of assumptions combines the analysis of historical trends with a forward-looking approach. Social security institutions assign major responsibilities to an actuary in the assumption-setting process.

Where it is the responsibility of the actuary, he or she uses appropriate methodology and assumptions to determine the conversion factors of lump sums to income. Unless these factors are set so as to meet specific policy objectives, they are determined as cost-neutral. If the factors are not cost-neutral, the actuary discloses this fully and determines and reports on the implications on adequacy and sustainability of the scheme.

The social security institution sets out appropriate processes and structures to measure risk.

The measurement of risk consists of assessing the frequency and severity of the risks identified as well as the likely distribution of outcomes. The frequency of a risk is the probability the event will occur; the severity is the financial implication; while the distribution refers to how widely outcomes are likely to vary from the mean expected event.

The current legal and effective coverage situation are analysed both in the light of current legislation and scheme administration, as well as within the global context of employment trends and population changes which may trigger changes in both legal and effective coverage.

The institution develops a long-term social security coverage extension plan subject to the guidance and support of the relevant authority. The inclusion of relevant stakeholders in the development of the plan helps to identify issues early but also helps in securing external support in the implementation phase.

The institution combines administrative solutions with supporting policy measures to foster compliance with minimal intervention required.

To increase the efficiency and effectiveness of its communication activities, the institution identifies the major groups and sub-groups of its stakeholders.

The communication unit establishes service level agreements with relevant internal units for the provision of communication services.

The ISSA defines governance as the manner in which the vested authority uses its powers to achieve the institution’s objectives, including its powers to design, implement and innovate the organization’s policies, rules, systems and processes, and to engage and involve its stakeholders.

The institution defines a strategy on fraud control and error risk management.

The strategy should include an organizational structure, specialization of roles (e.g. analysis, planning, control in the field), methodologies and procedures. It should balance preventive and corrective approaches, and be based on both intensive use of information and field activities (on-site inspections).

The concept of governance is understood in many ways by different people. Its definition often depends on the goals to be pursued, the entities involved, and the socio-political environment within which these goals are to be achieved.

The board implements the established actuarial measures to ensure the financial sustainability of each of the social security programmes established by the institution. For institutions that have investment reserve funds, standards and benchmarks are established for the returns on investments to support the financial sustainability of the social security programmes.

The principle of accountability is at the heart of good governance. At a political level, it means making rulers accountable to the ruled. To enforce accountability, governance structures and mechanisms are needed to enable the principals to hold their chosen trustees legally responsible for their acts and decisions.

The management regularly informs the stakeholders and the general public on the status of the institution and its operations.

The strategic plan spells out the institution’s plan of action, goals, targets, milestones and deliverables to achieve its vision. It articulates the programmes and activities to be implemented, and the management environment that would ensure coherence and maximize synergies within the institution. The formulation process ensures the consistency of the strategic plan with the institution’s mandate.

To maintain its financial sustainability, the contribution rates are set according to the promised benefits of the social security programme.