Review of the Actuarial Forecasts of the Proposed Contributory Social Security Regime in Timor-Leste
This report briefly summarizes the results for the analysis of the design, financing and administrative processes for a national social security system covering all salaried workers in Timor-Leste, including analysis of the actuarial report (ACL Re...
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| Language: | English en_US |
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Jakarta
2015
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| Online Access: | http://documents.worldbank.org/curated/en/ http://hdl.handle.net/10986/21112 |
| Summary: | This report briefly summarizes the
results for the analysis of the design, financing and
administrative processes for a national social security
system covering all salaried workers in Timor-Leste,
including analysis of the actuarial report (ACL Report)
prepared for the Directorate General of Social Security by
its consultant. The report is divided into seven sections:
(i) Scope of Work; (ii) ACL Report Assumptions and Methods
Comment; (iii) ACL Plan Design Comments; (iv) PROST
Analysis: ACL Report Design, Assumptions and Methods; (v)
PROST Analysis: ACL Report Design, Bank Assumptions and
Methods; (vi) Social Security Pension Fund Establishment;
and (vii) Conclusion. In the final analysis it was
determined that the ACL report does not meet international
standards for actuarial reports for national social
insurance systems. Furthermore it misrepresents the
long-term costs of the proposed Timor-Leste national social
security system by using non-standard assumptions and
methods and an unusually short analysis period. It is
suggested that the government of Timor-Leste carefully
consider all aspects of design and funding before adopting
the new system, as the decisions made will have very
significant macroeconomic, labor market, budget, and social
policy implications for the country for decades to come. |
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