SPPF TO ABOLISH SOCIAL SECURITY BENEFITS
The reason for setting up the elaborated Pension Scheme has become obviously clear in letters being sent out to recently retired workers. This newspaper has seen copies of these letters, but the recipients have requested we keep their identities anonymous.
According to these letters, the recipients are being informed that their social security benefits are included in the amount they will be receiving as state pension. Social Security benefits were introduced by former President Rene on assuming power immediately after the 5th of June 1977. Mr. Rene after the coup had to do something quickly to please the masses and social security benefits were announce on the spur-of-the-moment to boost his popularity and that of his newly installed government.
It has long been suspected that eventually the SPPF will do away with the Social Security system, as we know it. The IMF and the World Bank have on several occasions registered their reservations on the way social security is collected and benefits disbursed. In fact, certain members of the Central Committee of SPPF have been meeting secretly to discuss on how best to sell this latest pie to the country after the National Assembly elections. SPPF is hoping they will get a majority to amend the legislation, which governs the way the social security benefit system is administered.
Information filtering out indicates that the way social security contribution is currently being collected will not be affected. The changes will be with the way that benefits are paid out. The new administration at State House is of the view that the current benefits system is to be blamed for the chronically sluggish state of the economy. They have tried everything in the last sixteen years since the re-introduction of multi-party, MERP, GST - even going as far as changing notes in circulation on more than one occasion to restrain an otherwise over heated economy. But nothing seems to have worked either for the Government of Mr. Rene, or that of the current head of state President Michel. The SPPF is eager to get the National Assembly elections over and done with so that they can finally lay their hands on restructuring the way social benefits is paid out.
This newspaper is of the view that in fact there is nothing severely wrong with the way social security benefits are paid out, except that the administration of the social security fund is incompetent and is taking orders directly from the Minister on who gets benefits, especially at election time. In 1998, when the Social Security Fund was being administered by Mr Francis Chang Leng, the IMF has documented that the SSF paid out over SR 20,000,000 in additional benefits compared to its previous and following year. 1998 was an election year. The payment was halted only after the international observers intervened. Today 75% of the Social Security Fund's revenue is transferred to the Consolidated Fund to support the budget.
The problem with the economy is that the government should remove itself completely from economic business activities - curtailing its role to policing, regulating as well as being facilitator. So long as the SPPF refuses to adhere to the norms already established in successful economies like