Mr. Driss Azami Al Idrissi precludes the possibility of bankruptcy of pension funds if the necessary measures are taken : 15/01/2013

Mr. Driss Azami Al Idrissi precludes the possibility of bankruptcy of pension funds if the necessary measures are taken

The Minister Delegate to the Minister of Economy and Finance in charge of the Budget, Mr. Driss El Azami El Idrissi, excluded the possibility of bankruptcy of pension funds, if the necessary measures are taken.   

  M. El Azami El Idrissi, who was the guest of "Qadaya wa araâ " program broadcasted, Tuesday, January 15th 2013 on "Al Oula" TV channel , stressed the need to take steps to reform these funds and avoid the "Spector of bankruptcy", listing a number of alternatives, including raising the retirement age and membership fees.

After recalling that the numberof the four national pension fundersbmme s`exceeds 3.6 million, against 1.1 million beneficiaries. Mr. El azami noted that these funds are in deficit since 2012, a situation that is likely to increasein 2014, due to the imbalance between pension receipts and contributions from affiliates.

Similarly, he explained that the pension fundis based on redistribution system and pension receipts are paid through contributions. He noted that the progress achieved by some data, including raising the average age of work integration from 24 to 27 years, due to long term studies, as well as the improvement of people`s health care and longevity,help to reducethe contribution period of the members at a time when the number of beneficiaries increases.

M. El Azami El Idrissi stated in this context, that in 1983, 12 workers for every one retiree, while in 2011 this increased to 3 workers per retiree.

The pension fund assets amounted to 220 billion dirhams, while commitments to participants exceed this figure he noted, stating that the pension system reform is a social project that aims not only to provide pension retirees but also to extend the circle of affiliates to cover categories receiving no social security coverage.

These fundassets contribute to the promotion of economy, both in terms of investment and job creation, as they ensure the sustainability of pension systems, stated the Minister Delegate, noting that the government program stressed the participatory approach to pension system reform, by linking socio-economic operators and parliamentarians.

Mr. El Idrissi El Azami recalled, in this context, that the Head of Government will soon submit to the National Pension reform Committee, within the framework of social dialogue, the report of the technical committee to supply proposals.