Extension of Coverage to Self-employed Persons
The report presents an update of the financial projections performed in 2010 concerning the extension of coverage to self-employed persons (SEP). Benefits offered to this group would include Long-term benefits (retirement, invalidity, survivorship) and Short-term benefits (incapacity, maternity, funeral grant). They would have access to a retirement pension from age 60 (as for salaried employees). The contribution rate would be 11.2 percent, entirely paid by the SEP (the government could consider the possibility to support part of the contributions of low-income workers). Age credits (for eligibility purposes) would be granted at a rate of 50 contribution weeks for each complete year elapsed between the age of 50 and the attained age of the person at the introduction of these measures (up to a maximum of 6 years of credit).
After the year of implementation, during which administrative costs would be higher, the PAYG rate slowly increases from 1.4 percent in 2013-14 to 3.5 percent in 2019-20, to reach around 25 percent from year 2053-54. The general average premium associated with the SEP provisions is 9.4 percent. Total assets increase until 2051-52 and still represent 4.0 times the annual SEP expenditures in 2059-60.
