The government’s recent Decree 32 represents a significant step toward establishing the social security pension plan called for under legislation passed in late 2019, though further key points (e.g., the plan implementation date) are still to come. The National Social Security Fund (NSSF) will administer the pension plan, along with the previously implemented occupational risk insurance (2008), health care insurance (2016) and maternity benefit (2018) programs.
Employers should comply with the current NSSF registration and reporting requirements, and plan for the future required contributions. Decree 32 does not stipulate the start date for the pension component; that will be addressed by a separate order. Of the companies surveyed by Willis Towers Watson, few (under 20%) provide a retirement plan for their employees, though over 70% provide some type of risk benefit coverage (most commonly for death and disability benefits). While the anticipated new social security retirement, death and disability benefits may take some time to build up, companies may wish to begin reviewing their benefit offerings in light of the expected new programs.