The National Social Security & Welfare Corporation (NASSCORP) now has a new operating law. It is called “An Act to Repeal Decree No. 14 of the People’s Redemption Council of the Armed forces of Liberia and to create a new Chapter 89 of the Executive Law Establishing the National Social Security and Welfare Corporation of the Republic of Liberia.”

The new Act replaces Decree No. 14 issued by the People’s Redemption Council of the Armed Forces of Liberia repealing Chapter 89 of the Executive Law entitled “An Act to Establish the National Social Security and Welfare Corporation of the Republic of Liberia and Welfare fund”, which was used by NASSCORP for 37 years as its operating instrument.

The new Act was approved by the National Legislature on December 27, 2016 and signed by President Ellen Johnson-Sirleaf on February 13, 2017, after which it was printed into handbills. With the passage of this new Act, the administration of the civil service pension program has been abolished with the transferred of accumulated pension liabilities to NASSCORP. Therefore, former civil servants and public servants that were receiving pension benefits under the civil service pension program will continue to receive such pension benefits under the administration of NASSCORP.

Additionally, the new Act stipulates that, “Every person to whom Decree No. 14 applied before amendment to an Act shall continue to be credited for the number of months that person has contributed to social security scheme.” Under the new Act, government shall make budgetary allotment for the payment of existing pension liabilities under the defunct civil service non-contributory pension program to former civil servants and public servants who acquired rights under the civil service pension program. It also urges government to make budgetary allotment for the payment of accumulated pension liabilities of the Government due NASSCORP in settlement of pension benefits for public-sector employees.

The new Act extends coverage of the social security pension program to the President of Liberia, the Vice President of Liberia, the Speaker of the House of Representatives, the President Pro-Tempore of the Liberian Senate, members of the Legislature, the Chief Justice and Justices of the Supreme Court of Liberia, members of the Judiciary and cabinet ministers, the Police and other paramilitary institutions.

Notable changes in the new Act include increase in the contribution rate from 7.75% to 10%, increase of the vesting period from eight years four months to twelve years for all workers born 1980 and afterwards, the payment of survivor’s pension and death benefits in lump-sum, and the receipt of death benefit by widower without the precondition of dependence on his wife for support as contained in the old law, among others. With such broad mandate, the National Social Security & Welfare Corporation, observers believe, will” burn the candle at both ends” to measure up the expectations.