UNIVERSITY OF THE WITWATERSRAND, JOHANNESBURG

Managing Social Security and Pensions

The course gives students practical knowledge of social security systems and how they are designed and managed.

The course is being run jointly by Wits, through the Old Mutual Chair of Social Security Systems Administration and Management Studies, and the International Labour Organisation (ILO). The course will include sessions provided by content experts from the ILO as well as Wits.

The course is designed to:

Equip participants with a basic foundation of the conceptual frameworks, core principles, theories, and practice of social security in general and more specifically as it relates to pensions provision.
Promote a comparative systems approach to understanding social security and pensions policy.
Provide participants with a practical knowledge of social security interventions related to the provision of pensions and be able to reasonably apply this understanding to South Africa or their national contexts and to participate in policy discussions and debates.
Access international expertise and knowledge which can be applied to the South(ern) African context.
Support participants with their professional career development in their chosen fields.
Support the achievement of strong capacity within public entities while also strengthening the quality of public discourse within the field of social security.

Target groups and admission requirements

The Certificate Programme in Managing Social Security and Pensions is aimed at:
Middle- and senior- level managers and policy analysts working in national government, supervisory and regulatory authorities and government agencies;
Managers and analysts working in private regulated entities responsible directly or indirectly for the provision or financing of pensions;
Actuaries and financial modellers interested in strengthening their knowledge and skills on the policy aspects of the analysis of social security; and
Trustees and members of boards of administration of publicly mandated public or privately managed social security institutions.

Course Approach

The initial three modules prepare participants for a detailed examination of the South African context (in the final and fourth module) and a practical evaluation of the role of social security interventions and on the institutional and management implications of social security reform.

With respect to pensions, the course will clarify the role in achieving social security objectives played by non-contributory and contributory systems, including regulated private pension schemes. Course content will address different dimensions involved in analysing social security systems including financing, benefit designs, institutional frameworks and governance (general and financial; supervision and regulation of pension systems, and elements of organization and administration).

Contents and Course Structure

This course consists of two one-week modules, separated by one week to allow participants the notional learning time.

This course will provide participants with the tools to interpret domestic social security reform with a special emphasis on the provision of pensions. It will initially present the core values and principles that have become associated with social security systems and then cover practical experience globally taking account of regional tendencies. From this it will move on to framing generalizable constructs of specific relevance to South Africa and to other contexts.Taking this into account the course will then evaluate the South African context in detail.

Course Outline

Module 1: Introduction to Social Security

This would introduce students to the values, principles and programmes associated with social security systems globally. This would cover the evolution of social security systems including issues such as political economy, financing, institutional frameworks and policy development.

Basic economics of pension reform : objectives, principles of public pension systems
Principle features of social security systems
Risks to individuals, risk sharing, transfers and redistribution
Economic effects of pensions
Consequences for Public finance

Module 2: Comparative Social Security Reforms relating to pensions provision

This module looks at a range of country developments in pension systems within a global context drawing on the foundations raised in module 1. The countries selected will seek to highlight trends within a range of regional settings and focus on issues of relevance to the South African context. The components of reform addressed will include institutional approaches, governance (including financial governance), public finance principles and financing, approaches to investments, coverage and the quality of coverage (particularly in relation to vulnerable groups and those easily excluded). Areas covered include:

Pension systems in selected countries
The political economy and management of reform in selected countries
Non-contributory schemes
International diversity and trends
Selected Issues:
- pluralistic design and flexible systems
- extension of coverage
- contribution evasion / compliance
- improving governance

Module 3: Financial and Institutional Frameworks for Social Security and pensions provision

Participants will gain in-depth exposure to alternative financial and institutional constructs drawing on the comparative reviews derived from module 2. A key outcome of this module for participants is an understanding of generalizable principles associated with the design of institutional and financial approaches to social security and pension systems including a comprehensive focus on governance and accountability aspects and their role in ensuring sustainable and accessible pensions systems relevant to both public and private agents and actors. Areas covered include:

Redistribution and risk sharing
Funding and financing
Pensions and labour markets
Gender and family
Financial governance and impact of demography, options for reform adjustments in public schemes
The management of Investment
Governance and administration
The distinct roles of supervision and regulation in pension systems

Module 4: Social Security and Pension Reform in South Africa

This capstone module addresses the South African context and domestic debates, options and potential reform trajectories taking into account insights drawn from earlier modules. It will include: a full review of the existing South African pension system within the context of social security; and an evaluation of shortcomings and potential options going forward. Areas covered include: