NATIONAL SOCIAL SECURITY FUND - NSSF
The law of the NSSF was enacted in 1963 and the Fund became operational in 1965
The NSSF was the first of its kind in the Arab world. It was inspired by the French system that was reinforced by President De Gaulle in order to confront the hegemony of communism and socialism after World War II.
In 1963, facing the dramatic rise of the Nasserite Socialism in Syria, President Shehab
launched its social justice project with the NSSF and the ministry of Social Affairs as a basis.
The NSSF is composed of three branches:
- End-of-service indemnity branch
- Sickness and maternity branch
- Family allowances branch
the outcomes of the law required the establishment of a fund for work accidents and moving from the End-of-Service Indemnity scheme to the Pension Scheme... Not applicable to this day.
The Fund is managed by a Board of 26 members:
- 10 representatives of workers and unions,
- 10 representatives of the business community and liberal professions,
- 6 representatives appointed by the government,
- President, elected by the Council of Ministers,
- President of the control body, appointed by the Council of Ministers for an indefinite period,
- Director General, appointed by the Council of Ministers for an indefinite period.
It must be noted that the NSSF operated satisfactorily until the beginning of the war.
Neglected by various Governments during the war, the Fund remained without any real control which gave the staff members the opportunity to grant themselves exceptional benefits and privileges, unmatched in Lebanon:
- Automatic annual increase of 5%
- 14 months Salaries
- Upon retirement, an amount that equals 25 salaries in addition to the amounts stipulated in the law and a lifetime medical insurance!
The members of the staff now claim that the amount of indemnities collected after 20 years of service is considered as a loan to be repaid with interest while benefiting from a retroactive advantage from the date of subscription in the fund or paying an additional half salary starting from the 20th year.
The cost of this aberration amounts to 40 -50 millionUS $ without taking into account the retroactive effects and precedents that can be inevitably applied to the private sector...
The financial reserves of the end-of-service indemnity were maintained in LL but fused with the devaluation of the LL.
Thus, the Private Sector took the burden of compensating a large part of the difference. This situation had dramatic effects on a large number of subscribers who found themselves in poverty once they reached the age of retirement.
The Sickness Fund provides poor services especially under the "DAMAN EKHTIARI
" cover for optional social security introduced at the end of President Lahoud's mandate. This fund, in chronic deficit, borrowed more than US $ 600 million from the End-of-Service Indemnity Fund in an illegal manner.
The term of the current board was renewed twice, in an illegal manner and without elections.
The Administration, which should count 1,400 employees and cadres, barely counts today a thousand employees with an average age of 50 years, while dangerously missing qualified personnel. The average cost per employee is the highest in the country, amounting to approximately US $ 65,000 / year, without taking into account the inefficiency and the dramatic carelessness.
Despite a decision unanimously taken 11 years ago by the Board for the recruitment of 4 high-level technicians to support the DG who is facing complex problems, the DG refused to recruit them, except for the "IT Manager”.
Unlike the Central Bank
, which is equipped with very good human and technical resources and is the heart of initiatives in the banking sector, the Fund is increasingly trapped by incompetence and mediocrity.
As a dramatic consequence of the lack of staff and technicians, the sum of arrays due by the Fund to hospitals and businesses and lurking for years is now estimated at US $100-120 million. Some hospitals are heavily into debt while other privileged hospitals have their accounts settled within months after the issue of the statements.