Lukashenko comments on new mechanisms of social payments
The Belarusian Head of State requires a careful approach to the issue of personal data security with the possible introduction of modern mechanisms for social payments. The President stated this while receiving a report from Labour and Social Protection Minister Irina Kostevich.
In particular, the Minister proposed establishing a centralised structure on the basis of the Social Protection Fund to ensure the solution of the full cycle of state social insurance tasks. Such a reform envisages several stages, stretched over a few years. The first step provides for the unification in one state body – in the Social Protection Fund and its territorial bodies – of the full cycle of functions of pension insurance (from the collection of contributions to the assignment and payment of pensions). Aleksandr Lukashenko believes that, firstly, we should make sure whether we need a new system, whether it will be more efficient, and secondly, if the developers of innovations are convinced of their necessity, then why stretch this process into stages and over time, “If we are convinced of this, then let’s take two steps. The first step that we can take is from January 1st next year, and the second step – from the middle of 2023. There is no need to drag out the processes that need to be solved faster if they can be settled faster. That’s why we are here to discuss this issue. Meanwhile, this issue is connected with the first question: is it necessary or not, what do we lack here? The system seems to work, and people are used to it. What will this improvement bring to us?”
Some proposals of the Labour and Social Protection Ministry also include a phased digitisation of information about persons’ work path, which is necessary, in particular, for the introduction of predominantly paperless assignment of pensions, based on personalised accounting data.
“You propose to download everything to a computer, as is often the case with us, to digitise the entire accounting of labour activity,” said Aleksandr Lukashenko, addressing Irina Kostevich. “Maybe... If we can’t do without it. But I would not like to see all this base again tomorrow in the opposition or enemy Telegram channels. This is where we need to decide. Do we need to do it now? Should we do it tomorrow? How much is it? Is it necessary at all? It seems that the system is functioning. If we get some benefit for people and for the state, taking into account all the risks, – well, let’s do it. If not, it is necessary to go another path. These are questions that arise during the first reading of your proposals.”
As far as the proposals for the transfer of all functions for pension provision to the Social Protection Fund are concerned, Irina Kostevich explained, “It is proposed to restructure the social insurance system so that the entire cycle of pension and social insurance, sick leave certificates and child allowances, so that everything (both money, assignment and payment) is under the Social Protection Fund.”
“Why under the fund rather than under the district executive committee?” a reasonable question followed from Aleksandr Lukashenko.
“Contributions go to the fund, assignments and payments go through the social protection departments of the district executive committees. Regional executive committees co-ordinate this work,” Irina Kostevich explained.
“Everything is done there, and they take money from the fund’s ‘bag’,” Aleksandr Lukashenko explained the Minister’s words figuratively and in accessible language. “Do you propose to attach a control organ to this ‘bag’ today?”
“What are the concerns nowadays? The Social Protection Fund today is more than Br20bn in revenue. Money is managed, and money is spent within the same structure, but actually these are still different structures,” Ms. Kostevich explained the motivation of her ministry.
“Yes, they are different. So what? They are absolutely manageable in our country: the state fund and those who assign and pay pensions, this is also a state authority,” Aleksandr Lukashenko retorted.
“Yes. But we want to take two steps. The first is to take away the assignment of pensions from the social protection departments. The second step covers almost Br5bn and includes our sick leave certificates and child allowances. Today they are appointed by enterprises while we have an accounting mechanism. We now see problems, including in the payment of allowances: either overpayment, or underpayment, or late payment, as well as problems with wages, if it is a problem organisation. A particular person who is on childcare and parental leave suffers,” the Minister gave examples.
“It means that the authority that controls this (it’s not the fund’s function to control) does not work. Will it work if we transfer it all to the fund?” the President asked.
The Head of State also wondered why it is proposed to transfer the issue of assigning pensions and allowances to the Social Protection Fund, and not to another authority that will be in charge of the Social Protection Fund.
