Introduction

Background to the survey

1. In accordance with article 19 of the ILO Constitution, the Governing Body of the ILO decided at its 231st Session (Geneva, November 1985) to request governments to report on the position of their law and practice with respect to old-age benefit as defined by the Social Security (Minimum Standards) Convention, 1952 (No. 102) and by the Invalidity, Old-Age and Survivors' Benefits Convention, 1967 (No. 128) and Recommendation (No. 131). The reports thus supplied by the governments, together with those submitted in accordance with articles 22 and 35 of the ILO Constitution by States which have ratified one of these Conventions and accepted the part relating to old-age benefit, (Endnote 1) enabled the Committee of Experts on the Application of Conventions and Recommendations to carry out, in accordance with its usual practice, a general survey of the situation as regards the implementation of these instruments in so far as old-age benefit is concerned.

2. Minimum standards of social security have already been the subject of a general survey of the Committee of Experts carried out in 1961. In addition, the Governing Body requested governments to report in 1968 on the ratification prospects and difficulties as regards 17 of the most important international labour Conventions, including Convention No. 102. In 1977, the Committee of Experts carried out a general survey on another important aspect of social security -- equality of treatment between nationals and non-nationals -- after the Governing Body of the ILO requested governments to supply reports under article 19 of the Constitution concerning the Equality of Treatment (Social Security) Convention, 1962 (No. 118). The frequency with which the Governing Body has chosen social security instruments as the subject of reports under article 19 of the Constitution clearly shows the importance which it attaches to this fundamental aspect of social protection. Moreover, Conventions Nos. 102 and 128 and Recommendation No. 131 were classified by the Governing Body in its in-depth study of international labour standards carried out in 1979 as instruments which should be promoted on a priority basis. (Endnote 2) This priority was confirmed in 1987. (Endnote 3)

3. Unlike the general survey carried out in 1961, which covered the nine branches of social security provided for by Convention No. 102, this survey, which also concerns Convention No. 128 and Recommendation No. 131, only covers old-age benefit. The Governing Body considered that it would be appropriate to limit the scope of the survey to old-age benefit in order to undertake a more thorough study of the subject and better identify the main trends in this field, taking into account an economic context marked by high unemployment and persistent inflation, which has repercussions, sometimes highly detrimental, for long-term benefits such as old-age benefit.

Standard-setting activities of the ILO

4. Social security issues have always been foremost among the concerns of the ILO. The Preamble to the Constitution urged the Organisation as long ago as 1919 to improve working conditions by "the prevention of unemployment, the protection of the worker against sickness, disease and injury arising out of his employment, ... provision for old age and injury, ...". This concern of the ILO, in its first phase beginning with the first sessions of the International Labour Conference, was expressed in the adoption of standards for the protection of certain categories of workers against specific contingencies, such as maternity, (Endnote 4) industrial accident, (Endnote 5) and occupational disease, (Endnote 6) sickness, (Endnote 7) invalidity, (Endnote 8) death of the bread-winner (Endnote 9) and unemployment. (Endnote 10) More particularly, as regards old-age protection, in 1933 the Conference adopted two Conventions, the Old-Age Insurance (Industry, etc.) Convention, 1933 (No. 35) and the Old-Age Insurance (Agriculture) Convention, 1933 (No. 36).

5. The second phase of the ILO's standard-setting activity focused on a broader, global concept of social security, under the impetus of the Declaration concerning the Aims and Purposes of the International Labour Organisation, adopted in Philadelphia in 1944, which includes as part of the Programme of Action of the ILO "the extension of social security measures to provide a basic income to all in need of such protection and comprehensive medical care". Two important Recommendations, namely the Income Security Recommendation, 1944 (No. 67) and the Medical Care Recommendation, 1944 (No. 69) paved the way for the adoption in 1952 of Convention No. 102. This instrument, which introduced the concept of general minimum standards of social security which member States must reach, marks a turning point in the history of social security.

6. Parallel to Convention No. 102, the possibility was envisaged of adopting an instrument providing for a higher standard of social security. Owing to lack of time and in view of its complexity, the question was not discussed by the Committee on Social Security of the 1952 Conference. However, at that Committee's recommendation, the Conference issued a resolution inviting the Governing Body to take up the question again in due time. In accordance with this resolution, and taking into account the experience acquired in the application of Convention No. 102, the social security Conventions adopted from 1925 to 1934 were gradually revised by adopting a new series of instruments, including the Invalidity, Old-Age and Survivors' Benefits Convention, 1967 (No. 128), supplemented by Recommendation No. 131. (Endnote 11)

7. The picture given above of the development of international standards on social security would be incomplete if it failed to mention the ILO's constant concern to provide protection for migrant workers, and non-nationals in particular, in the field of social security. Here twin goals have been pursued: on the one hand, to ensure that non-nationals are treated on an equal footing with nationals and, on the other, to guarantee the maintenance of rights, both acquired and in the course of acquisition, in the event of workers transferring their residence from one country to another. The principle of equality of treatment is enshrined in many general instruments on social security, including Convention No. 102. It has also been the subject of specific standards, of which the following should be mentioned in particular: the Equality of Treatment (Accident Compensation) Convention, 1925 (No. 19) and the Equality of Treatment (Social Security) Convention, 1962 (No. 118). As regards maintenance of migrant workers' acquired rights and rights in the course of acquisition in the event of transferral of residence, this issue is fraught with particularly complex problems which have been the subject of several international instruments, including the Maintenance of Social Security Rights Convention, 1982 (No. 157) and Recommendation (No. 167).

8. Lastly, in accordance with the practice regarding the drafting of standards on maritime labour, a number of Conventions and Recommendations concerning seafarers' old-age benefits have been adopted by special maritime sessions of the International Labour Conference. (Endnote 12)

Contents of the instruments covered by the General Survey

Convention No. 102

9. Unlike the Conventions adopted previously, Convention No. 102 deals in a single instrument with the nine main branches of social security: medical care, sickness benefit, unemployment benefit, old-age benefit, employment injury benefit, family benefit, maternity benefit, invalidity benefit and survivors' benefit. Its scope is no longer defined in terms of branch of economic activity (industry or agriculture), but is determined, at the option of the member States, by reference to employed persons, or active population, or residents. Lastly, the Convention fixes the minimum amount of benefit; periodical payments are calculated by reference to wages in the country concerned, while earlier instruments left the determination of the rate of benefit to the national legislation.

10. Convention No. 102 comprises 15 parts, of which Parts II to X correspond to the nine branches of social security mentioned above. The other parts (Part I and Parts XI to XV) contain provisions which apply to all branches. In order to ratify Convention No. 102, a country must merely accept three of these nine branches, including at least one of the following: unemployment, employment injury, old-age, invalidity or survivors' benefit (Article 2). States may subsequently accept the obligations in respect of other parts of the Convention (Article 4).

11. For each branch, the Convention contains provisions pertaining to the definition of the contingency covered, minimum coverage, and the rate, duration and conditions for the grant of benefit. The Convention has been drafted with sufficient flexibility on these points to take different methods and stages of development into account. Moreover, Article 3 provides for a number of temporary exceptions for countries "whose economy and medical facilities are insufficiently developed". In order to avail itself of such exceptions, a country must append a declaration to its ratification.

12. More particularly, as regards old-age benefit, Part V of the Convention lays down the age for entitlement to pension, which is, in principle, fixed at 65 years (Article 26, paragraphs 1 and 2). The persons protected must, at the government's option, include one of the following: not less than 50 per cent of all employees; or prescribed classes of the economically active population, constituting not less than 20 per cent of all residents; or all residents whose means during the contingency do not exceed a certain limit. For countries which have made a declaration in virtue of Article 3 at the time of ratification, coverage may be reduced to a smaller number of persons calculated by reference to the number of persons employed only in industrial workplaces of a certain size.

13. Old-age benefit, which must consist of periodical payments, may be calculated using one of three methods prescribed by the Convention. The rate of benefit, in principle, is equal to 40 per cent of the beneficiary's previous earnings (this level must be attained even for a skilled manual employee) or of the wage of an ordinary labourer, or it may be determined according to a scale taking into account other means of the beneficiary's family. Moreover, old-age benefit must be reviewed to take into account changes in the general level of earnings (Articles 28, 29, 65, 66 and 67 and Schedule appended to Part XI).

14. The provisions common to all branches refer in particular to equality of treatment of non-national residents (Article 68), cases in which benefits may be suspended (Article 26, paragraph 3, and Article 69), right of appeal (Article 70) and certain principles concerning financing (Article 71, paragraphs 1 and 2). The State must also assume general responsibility for the due provision of benefits and proper administration of institutions and services (Article 71, paragraph 3 and Article 72, paragraph 2). Lastly, representatives of the persons protected must participate in the management of social security or be associated therewith in a consultative capacity, if the administration is not entrusted to an institution regulated by the public authorities or to a government department (Article 72, paragraph 1).

15. The Convention does not apply to seamen or sea fishermen (Article 77).

Instruments of 1967

16. Convention No. 128, which comprises eight parts, covers only three long-term contingencies: invalidity, old age and loss of bread-winner (survivors' benefit). Like Convention No. 102, it contains provisions relating to each of these three branches (Parts II to IV) and common provisions (Part I, and Parts V to VIII). A Member must accept one of the three branches covered in order to ratify the Convention (Article 2).

17. Most of the common provisions, as well as those defining the contingency and the form, calculation and duration of benefit have been drafted in a very similar way to those of Convention No. 102. Convention No. 128 also provides for maintenance of rights in the course of acquisition, for example where the beneficiary changes schemes (Article 30). Convention No. 128, however, provides a higher degree of protection, both as regards coverage and in terms of the rate of benefit. In the case of old-age benefit, covered in Part III of the Convention, the persons protected must comprise all employees, or prescribed classes of the economically active population, constituting not less than 75 per cent of the whole economically active population, or all residents whose means during the contingency do not exceed a prescribed limit (Article 16). The rate of benefit is fixed at 45 per cent of the reference wage (Schedule to Part V of the Convention).

18. In view of the higher objectives set by the Convention, it contains a number of flexibility clauses. In particular, it allows the exclusion of certain categories of employees (Article 37) and temporary exclusion of agricultural employees (Article 38). Seafarers and public servants may also be excluded under certain conditions (Article 39). Other exceptions, some quite broad in scope, are allowed for States which accept the obligations of the Convention as a whole and where protection covers a given percentage of the economically active population higher than that required by the Convention (Articles 41 and 42).

19. Recommendation No. 131 increases the degree of protection provided for by Convention No. 128 by supplementing it on a number of points, including for old-age benefit, scope (Paragraph 2), pensionable age (Paragraphs 6 and 7), qualifying conditions (Paragraphs 8, 16 and 17), conditions for suspension of benefit (Paragraphs 11 and 26), deferred retirement (Paragraph 18) and rate of benefit (Paragraphs 22 to 25).

20. The texts of the relevant provisions of the three instruments are found in Appendix I of this Survey.

Other activities of the ILO in the field of social security

21. From the earliest years of its existence, the ILO has been fully aware of the need to promote and encourage the exchange of information and experience in the field of social security. In this context, officials at headquarters began to travel to various countries, on short missions at first, in response to governments' requests for the ILO's advice and technical assistance in setting up or developing their social security systems. Such technical co-operation became increasingly widespread following the Second World War, when the technical assistance programme of the United Nations and specialised agencies was launched. It is estimated that more than 400 missions of ILO experts or consultants in the field of social security have been undertaken since 1950 in over 100 countries. ILO assistance first focused on Latin America, later spreading to Africa and the Caribbean. Recently, experts have also been sent on mission to Asia and the Gulf States. In a great many cases, the ILO provided assistance throughout the process of setting up the social security scheme. In the last decade, technical co-operation has developed further in order to meet the constantly changing needs of States facing new challenges.

22. The ILO provides assistance in a number of different ways. Firstly, it assists countries wishing to set up a social security system by collaborating in studying the underlying economic, social and administrative conditions and in drawing up guide-lines taking into account immediate needs, the country's administrative resources and future prospects. It also carries out actuarial studies, which are of fundamental importance to the viability of the future scheme. The ILO also assists in drafting social security legislation, whether by framing new laws or regulations or by revising or amending existing legislation. The technical assistance provided by the Office adheres closely to the objectives laid down in the ILO instruments on social security and Convention No. 102 in particular. Lastly, the ILO studies problems involved in the organisation and administration of social security institutions with a view to improving their methods and operation. Such studies may cover the administration as a whole or deal with certain aspects of it. In addition to sending experts to the field, the ILO provides scholarships enabling young officials in developing countries to undergo training in the national administrations or social security institutions of other countries which have acquired substantial experience in this field. The ILO also organises courses and seminars at the national or regional level enabling senior staff, administrative staff and specialists in the field of social security to improve their knowledge. Regional advisers on social security are appointed for each region, chiefly in order to reply to governments' urgent requests and to follow up the recommendations made in the course of technical assistance projects; these advisers undertake to promote technical co-operation on a permanent basis, taking into account the instruments adopted by the International Labour Conference.

23. The most recent technical assistance projects include those undertaken in Algeria, Burundi, Cuba, Guatemala, Kuwait, the Libyan Arab Jamahiriya, Malaysia and Mauritania, involving financial and actuarial evaluation of national social security systems, and pension schemes in particular. A tripartite consultation was held at ILO headquarters in order to examine specific methods for the introduction of a pension scheme in Lebanon. In Algeria, Bolivia, Guinea, Indonesia, Rwanda, Senegal, Suriname and several Caribbean countries, emphasis was laid on an analysis of the efficiency of existing programmes and a study of the possibility of adopting new schemes or extending coverage of social security. Projects also focus on training senior social security staff, especially in Africa where there is a shortage of qualified personnel. Lastly, projects are now under way in Angola and Mozambique with a view to setting up and reorganising their social security schemes.

24. The ILO's activities in the field of social security also include research and publication of studies aimed at achieving a better understanding of the various problems encountered. In addition to the preparatory reports drawn up by the Office with a view to adopting new social security standards and those prepared for regional conferences (Endnote 13) and other technical meetings, the ILO also undertakes studies and thorough analyses of current issues. (Endnote 14) These studies are carried out by the research staff of the Social Security Department of the ILO or outside specialists. Parallel to these studies, which provide important guide-lines for social security, the ILO produces manuals intended chiefly for social security directors and administrators, although they may be of interest to a wider readership, in particular in the actuarial and accounting fields.

25. Thus, the standard-setting activity of the ILO is effectively supplemented by technical co-operation activities taking into account both the Conventions and Recommendations adopted by the International Labour Conference, on the one hand, and the comments of the ILO supervisory bodies, on the other. Recent years have seen an increase in this tendency to link standard-setting and technical co-operation activities as closely as possible.

Activities of other organisations

26. At the universal level, the right to social security is enshrined in Articles 22 and 25 of the Universal Declaration of Human Rights. In addition, the International Covenant on Economic, Social and Cultural Rights provides in general terms that the States Parties to the Covenant "recognise the right of everyone to social security, including social insurance", but without specifying the nature or extent of the protection to be provided (Article 9).

27. At the regional level, the Council of Europe has adopted a number of instruments containing the principles reflecting that Organisation's systematic approach to social security. Firstly, the European Social Charter, a comprehensive instrument, contains a number of provisions on this subject. The Charter, adopted in 1961, sets social objectives to be followed by ratifying States. Thus, Article 12 concerning social security lays down the principle of the right to social security and requires the contracting parties to maintain a level of protection at least equal to that prescribed for ratification of Convention No. 102 and to endeavour to raise progressively the system of social security to a higher level. It also provides for the conclusion of bilateral or multilateral agreements in order to ensure co-ordination of national legislation of various countries as applied to nationals of the contracting parties. The Charter further stipulates the right to social and medical assistance (article 13). The Council of Europe has also adopted specific texts in the field of social security. These include the European Code of Social Security, which was adopted in 1964 and entered into force four years later. Convention No. 102 was taken as a model, and most of its provisions are reproduced in the Code. (Endnote 15) The Code is supplemented by a protocol which sets higher objectives than those laid down in the Code itself. (Endnote 16) A revision of the Code is now under way. Lastly, the Committee of Ministers of the Council of Europe has adopted a number of resolutions and recommendations in the field of social security, including Recommendation No. R(87) 5 (dated 12 March 1987) on making old-age and invalidity benefits generally available.

28. The European Communities have also adopted standards concerning specific aspects of social security. Thus, several regulations have been issued on the problem of social security of migrant workers as an element of the free movement of workers provided for by Article 51 of the Treaty of Rome. (Endnote 17) Two directives have also been drafted on equal treatment for men and women in social security. (Endnote 18)

29. A social insurance minimum standards convention was adopted by the Arab Labour Organisation in 1971. This convention, the application of which shall be gradually extended to the whole active population, covers all contingencies provided for by Convention No. 102.

30. Lastly, it should be borne in mind that regional organisations such as the African and Mauritian Common Organisation (OCAM), the Economic Community of the Great Lake Countries and the Council of Europe have adopted numerous co-ordination agreements in order to ensure the protection of migrant workers. (Endnote 19) These instruments concern the legislation applicable in the field of social security, the principle of equal treatment and the maintenance of acquired rights and those in the course of acquisition.

31. Both the Social Charter and the European Code of Social Security, as well as most of the co-ordination agreements mentioned above, were drafted and adopted with the collaboration, often very close, or the technical assistance of the ILO. In addition, the Committee of Experts is involved in the procedure for supervision of compliance with the European Code of Social Security and its Protocol, so that a degree of uniformity is achieved between supervision of the application of these instruments, on the one hand, and Convention No. 102, on the other. (Endnote 20)

Ratification of Conventions Nos. 102 and 128

32. Convention No. 102, which entered into force on 27 April 1955, has been ratified by 32 countries to date; 21 of these ratifications occurred since the general survey of 1961. Four States did not accept Part V of the Convention, concerning old-age benefit. (Endnote 21)

33. Convention No. 128 entered into force on 1 November 1969 and by March 1989 had been ratified by 14 States, of which only one did not accept Part III concerning old-age benefit.

34. Detailed information on the States bound by these instruments is given in Appendix II of this Survey. It should be borne in mind that, under Article 45 of Convention No. 128, and in conformity with Article 75 of Convention No. 102, Part V of Convention No. 102 ceases to be binding on a member which has ratified Convention No. 128 and accepted obligations in respect of Part III of this Convention, in so far as no declaration under Article 38 of Convention No. 128 is in force.

Available information

35. One hundred and five States and 11 non-metropolitan territories have communicated reports under article 19 of the Constitution on Conventions Nos. 102 and 128 and Recommendation No. 131 and under article 22 on these Conventions when they have been ratified. Appendix III of this Survey contains detailed information on the countries which have sent such reports. The Committee has also taken into account observations made by employers' and workers' organisations to whom government reports have been communicated in accordance with article 23, paragraph 2, of the ILO Constitution. (Endnote 22)

36. The nature and extent of the information available vary considerably from one country to another. Some reports are very comprehensive, while others give an inadequate or an incomplete picture of the situation. In this respect, the Committee should point out that the evaluation of the implementation of certain fundamental provisions of Conventions Nos. 102 and 128, and in particular those concerning coverage and the rate and review of benefit, has been made particularly difficult by the absence of statistical information. Except for the countries which have ratified one of these Conventions, very few governments indeed have supplied such information, although it was expressly requested in the report forms adopted by the Governing Body under article 19 of the Constitution. This lack of information can probably be attributed to the fact that such information is not always available, particularly in developing countries where statistical services are not yet fully operational. In any case, the Committee has, according to its usual practice, endeavoured to supplement the information supplied by governments in order to achieve the most possible complete evaluation of the implementation of the principles laid down in the instruments under consideration.

Outline of the survey

37. The introduction is followed by Chapter I, dealing with the fundamental objectives of the instruments as regards old-age protection and with methods of protection. Chapter II deals with scope. Chapter III contains an analysis of the qualifying conditions for old-age benefit, while Chapter IV concerns the form, calculation and rate of benefit. Chapter V deals with the review of benefit, an issue of particular relevance today. Chapter VI examines various aspects, such as the financing, organisation and operation of social security schemes, the beneficiary's right of appeal, the principle of equal treatment and the suspension of benefit. Chapter VII of this Survey contains the Committee's conclusions.

38. As in the past, the Committee refers to the situation in individual countries by means of footnotes. In view of the large number of countries surveyed, these notes, which are intended to throw light on the scope and implementation of the various instruments, contain only the most representative examples and do not claim to be comprehensive.

Endnotes

Endnote 2

Endnote 3

Endnote 4

Endnote 5

Endnote 6

Endnote 7

Endnote 8

Endnote 9

Endnote 10

Endnote 11

Endnote 12

Endnote 13

Endnote 14

Endnote 15

Endnote 16

Endnote 17

Endnote 18

Endnote 19

Endnote 20

Endnote 21

Endnote 22

Cross references
Constitution: Article 19
Constitution: Article 22
Constitution: Article 35