Minister of Finance Mohamed Maait said that in implementation of the presidential directives to end financial entanglements with the National Authority for Social Insurance, the state’s public treasury has transferred EGP 465.4bn to the National Authority for Social Insurance over the past 33 months.
This brings the total transferred from the treasury to the Pensions and Insurance Fund to EGP 510.5bn by the end of next June, in light of Social Insurance and Pensions Law No. 148 of 2019. This ensures the necessary financial liquidity to serve pensioners, their beneficiaries, and the insured is provided.
“We allocated EGP 190.5bn in FY2021/22’s budget for the National Social Insurance Authority. This amount will help disburse the annual increase in the value of pensions by 13%, with a minimum of EGP 120, starting from the beginning of this April,” Maait said.
The minister also pointed out that the increase in the annual premium for settling entanglements transferred from the state’s public treasury to the National Authority for Social Insurance was amended to 5.9% instead of 5.7%. This amendment was made to accommodate the measures taken by the state to improve the living conditions of pensioners.
Furthermore, he said that the total amount the state’s public treasury paid to the National Authority for Social Insurance over the seven years since the signing of the agreement to break up the entanglements as of July 1, 2019, is approximately EGP 1.363 trillion.
Maait explained that the state’s public treasury will pay about EGP 45 trillion to the National Authority for Social Insurance over 50 years, which is the agreed upon term to resolve entanglements as of 2019.