On Monday April 29, 2013, under the high patronage and presence of the Minister of Labor, His Excellency Mr. Salim Jreissaty, the Faculty of Law at the Holy Spirit University of Kaslik (USEK) organized an international conference entitled “What is the Future of Retirement Rights in Lebanon?”
The Member of Parliament Nabil Nicolas, the President of USEK, Rev. Fr. Hady Mahfouz, the Vice Dean of the Faculty of Law, Rev. Fr. Talal Hachem, along with judges, lawyers, members of the University Council, and social, educational and judicial figures, all attended the event.
Following the Lebanese National Anthem, the Vice Dean of the Faculty of Law, Rev. Fr. Talal Hachem, took the floor and stated that “The issue of retirement right is currently the front of the Lebanese scene. An overview of the changing Lebanese retirement system allows us to predict the adverse consequences that may result from the aging population and to highlight the alarming urgency to undertake a reform. The gap between the systems in the public and private sectors is even more alarming.”
The National Social Security Fund (NSSF) Chairman, Mr. Tobie Zakhia, maintained that “The Administrative Board of the NSSF had access to a project that some partners drafted in 2008, which could be considered as an advanced step in the field of social protection.” He added, “The three social partners (the government, employers and workers) should gather to work on all the details and the guaranteeing mechanisms of a new pension system that would meet the aspirations and hopes of the Lebanese people for a decent life.”
The Economic Expert at the World Bank, Mr. Gustavo Demarco pointed out that “…the pension system in Lebanon is fragmented and leads to inequalities. The services of this system only cover a small part of society and marginalize the rest; thus we can say that it is not sustainable.” He added: “There is no universal model, but choices should respect the following principles; the pension system should be self-sustainable, redistribution should be transparent and progressive preventing the system from minimizing economic distortions, and administration should be efficient.”
Afterwards, the Senior Regional Social Security Specialist in the ILO Regional Office for Arab States, Ursula Kulke, took the floor and said: “Lebanon is one of the few countries in the world which has not yet established a pension scheme, which would provide periodic benefits for workers in the private sector…In view of the interactions of the new pension scheme with other social protection policies, it is necessary to embed this new scheme into a broader employment and social protection strategy.”
The President of the Economic and Social Council (ESC) in Lebanon, Mr. Roger Nasnas, stated that “Lebanon still adopts the pension system set in the sixties. The Lebanese State, after many attempts, has failed to change this system…The ESC has submitted a project based on three pillars - the distribution principle based on the contribution of those who get the minimum wage, the contribution of those whose salaries exceed 3 to 6 times the minimum wage, and the contribution of those whose salaries exceed the salaries of both the first and the second pillars.”
The Chairman of the Steering Board of the Pension System in France, Mr. Raphael Hadas-Lebel, declared that despite the multiple differences between Lebanon and France regarding administrative and structural levels, both countries face the same challenges. He concluded by suggesting three conditions necessary for a sound pension system; a technical vision, agreement on the goals of the system’s reform, as well as political will and continuity.
Then the President of the Holy Spirit University of Kaslik, Rev. Fr. Hady Mahfouz, stated that “…the right to retirement is at the core of human and social rights.” He continued, “Obviously, the ideal would be a society with jobs for all, without unemployment, without poverty, and with full pension rights, corresponding in all respects with the recommendations of the International Labor Organization (ILO). While we recognize that this is a utopian vision in our world, given the continual struggle with socio-economic changes, the consequences of which are often, if not always extremely heavy and restrictive.”
Finally, the Minister of Labor, H. E. Mr. Salim Jreissaty declared that the Bloc of Change and Reform had presented a draft law to address this great gap which affected citizens, especially, those working in the private sector. He added: “I tried to get international assistance to amend the draft law, in order to abolish obstacles, since these amendments rely on the recommendations of the ILO and the World Bank.” He concluded: “The implementation of a new system imposes new provisions, in order to build the capacities of institutions and monitoring within the NSSF.”
In conclusion, Rev. Fr. Mahfouz presented the University medal to Minister Jreissaty and Rev. Fr. Hachem presented medals to each of the speakers.