By Foday Moriba Conteh
Mohamed Fuaad Daboh, the Director General of the National Social Security and Insurance Trust (NASSIT), has called on social security administrators to exercise heightened vigilance and diligence in the management and investment of social security funds. His appeal was made during the opening ceremony of the International Social Security Association (ISSA) Technical Seminar, held on Monday, September 9, 2024, in Abidjan, Côte d’Ivoire. The seminar, themed “Investing Social Security Funds for Viable and Sustainable Social Protection Systems,” drew participants from around the world to discuss the critical role of fund investment in ensuring the sustainability of social protection systems.
Representing Mohamed Ali Bensouda, President of the ISSA Technical Commission on Investment of Social Security Funds, Mr. Daboh emphasized the importance of safeguarding social security funds, which he described as a fundamental human right. He noted that social security institutions are tasked with ensuring that citizens can access these benefits under the most favorable conditions, highlighting the responsibility that comes with managing these funds.
As Vice President of the ISSA Technical Commission on the Investment of Social Security Funds, Mr. Daboh underscored the role that social security institutions play in shaping the development of social protection systems. “We have the unique privilege of being part of the decision-making architecture that sets the course for the development of social protection in our countries,” he remarked.
Mr. Daboh further described the investment of social security funds as a central pillar of social security governance. He explained that social security administration revolves around three core functions: collecting contributions from employers and employees, paying benefits to members, and accumulating reserves through investment. These reserves ensure that benefits can be paid even when expenditure surpasses contributions.
While acknowledging that social security administrations face challenges such as evasion, default in contribution payments, and errors in benefit disbursement, Mr. Daboh noted that existing verification and control mechanisms help mitigate these issues. However, he stressed that the situation is more complex when it comes to investing social security funds. “Investment is focused on managing modelled risks to create value for social protection systems,” he explained. “Errors in risk assessment can lead to substantial losses, underscoring the need for greater vigilance and diligence at every stage of the decision-making and investment management processes.”
Beyond ensuring intergenerational equity and reinforcing the sustainability of social protection systems, Mr. Daboh emphasized the development role that social security reserve funds play. These funds, he noted, support government development policies and contribute to the financing of the broader economy.
Highlighting the work of the ISSA, Mr. Daboh pointed out that the association’s Technical Commission on the Investment of Social Security Funds, one of thirteen technical commissions, is dedicated to developing and sharing knowledge among professionals managing social security programs. He noted that the commission is responsible for the ISSA guidelines on the investment of social security funds, which serve as a critical resource for social security administrators worldwide.
During his remarks, Mr. Daboh expressed his gratitude to Adama Kamara, Côte d’Ivoire’s Minister for Employment and Social Protection, for the support and guidance the ministry provides to social security institutions. He also acknowledged ISSA Secretary General Marcello Abi-Ramia Caetano and Denis Charles Kouassi, Director General of Côte d’Ivoire’s National Social Insurance Fund (IPS), for hosting the seminar.
The three-day ISSA Technical Seminar, running from September 9 to 11, 2024, at the Hotel Sofitel Ivoire in Abidjan, is expected to cover a range of topics related to the investment of social security funds, with the goal of ensuring the long-term viability and sustainability of social protection systems globally.
