The Council of Ministers has ratified two draft regulations to establish government bodies entrusted to administer pensions and social security funds of public and private employees in Ethiopia.
Ethiopian lawmakers amended the public servants’ and private employees’ pension proclamations this year.
The amendments proposed for the Council of Ministers to issue regulations that set up administrative bodies for government and private sector employees’ social security funds.
The draft revised regulations to reestablish the two institutions tasked to administer public and private employees’ social security funds, respectively, were tabled for discussion during the Council of Ministers’ regular session on Wednesday.
The Office of the Prime Minister said the amendments to the existing regulations were made to enhance the operational and working capacity of both institutions.
– Allows investments –
Their names are the Public Servants Social Security Fund Administration, and Private Organization Employees’ Social Security Fund Administration.
The PM said the regulations clearly define the powers and duties of the institutions as well as give them more responsibilities as per the recently amended pension proclamations.
Accordingly, the regulations now permit the administrative bodies to utilize the pension funds to engage in profitable and reliable investments with their respective management boards having a final say on the matter.
The PM Office said the regulations make sure the investment decisions are made based on market research and in manners that benefit both the country and employees in a sustainable and secure manner post-retirement age.
The official retirement age of an employee is 60 years based on the date of birth registered when he/she was employed for the first time.
After adding inputs, the council of ministers approved the regulations with a unanimous vote and decided for both to become effective as soon as their publications in the Negarit Gazette.
During the same session, the council also unanimously voted to ratify two other directives that respectively establish the Ethiopian Agricultural Research Institute, as well as determine the powers and responsibilities of the Ethiopian Construction Authority.
Both directives will become effective as of their publication date in the Negarit Gazette.