The 2007 reforms identified that the social security pension’s structure at the time allowed a person to accrue the social security contribution pension after 30 years of employment. This resulted in a number of negative impacts. Most individuals continue to contribute until they reach the statutory retirement age. In essence, therefore, this means that people working up to retirement age will not accrue any tangible benefits for the period worked beyond the 30-year contribution period.
It was concluded that a fairer and truer reflection was to establish the accumulation of the social security contribution basis on a work career lifetime basis – set at 40 years. For the reasons explained earlier, the reforms were introduced in a scaled matter targeting the different age cohorts in order to smoothen the impact of its introduction with particular regard to those reaching retirement age. The Table below presents the reforms to the accumulation period introduced as a result of the 2007 reforms.
Table: 2007 Reforms to the Accumulation Period for Qualification for the Full Social Security Contribution