Tuesday, August 2, 2011


WHEREAS, it is necessary to organize the Social Security Authority in such a way as to enable it perform its duties efficiently;
NOW, THEREFORE, in accordance with Articles 55(1) of the Constitution, it is hereby proclaimed as follows:
1. Short title

This Proclamation may be cited as the "Social Security Authority Establishment Proclamation No. 38/1996." 2.    Establishment
    1. There is hereby established the Social Security Authority/hereinafter "the Authority"/ as an autonomous federal public office, having its own juridical personality.
    2. The Authority shall be accountable to the Council of Ministers.
4.    Head Office
    The Authority shall have its head office in Addis Ababa and may have branch offices elsewhere as necessary.
5.    Objective
    The objective of the Authority shall be to strengthen and expand social security programmes.
6.    Powers and Duties The Authority shall have the power and duties to:
    1. implement social security laws, regulations and directives;
    2. undertake studies to strengthen and expand social security programmes and submit same to the Government;
    3. collect social security contributions, ensure that proper records of same are kept by every employer, inspect such records and documents where necessary and take legal action against employers who fail to pay in contributions and to furnish information on time;
    4. administer social security funds and maintain separate books of accounts for each fund;
    5. collect in advance, verity and record evidentiary data that entitle persons to social security benefits; update such records upon notification of changes received from employers from time to time;
    6. determine the amount of social security benefit to which a rightful claimant is entitled pursuant to the relevant law; ensure that preparation of the necessary documents is completed and that payment is properly effected;
    7. publicize centers already designated for payment of social security benefits and, where necessary, designate new ones in cooperation with appropriate institutions;
    8. decide on claims relating to social security rights and benefits submitted to it in accordance with the relevant laws;
    9. invest the balance of social security contributions, after deduction of the amounts necessary for payment of benefits and for reserve, in profitable and reliable investment activities;
    10. cause periodical actuarial study and review of the social security schemes;
    11. own property, enter into contracts, sue and be sued in its own name;
    12. carry out such other activities as may be necessary for the fulfillment of its objective.
7.    Organization of the Authority The Authority shall have:
    1. a Board of Management (hereinafter "the Board");
    2. a General Manager of be appointed by the Government; and
    3. the necessary staff.
8.    Members of the Board
    Members of the Board, including he Chairman thereof, shall be appointed by the Government with their number to be determined as necessary
9.    Powers and Duties of the Board The Board shall have the powers and duties to:
    1. as the superior body, direct and supervise the activities of the Authority;
    2. review and approve the short and long-term plans as well as the annual work programme and budget of the Authority;
    3. supervise the administration of social security funds; ensure that plans for investment, to be made pursuant to Article 5(9) of this Proclamation, are effected in compliance with general directives of the Government;
    4. approve the annual operational report of the Authority;
    5. decide on such other matters submitted by the General Manager, as relating to the administration and management of the Authority.
10.    Meetings of the Board
  1. The Board shall meet once in three months; provided, however, that it may meet any time upon the call of the Chairman.
  2. There shall be a quorum where more than half of the members are present at meetings of the Board.
  3. Decisions of the Board shall be passed by a majority vote of the members present at a meeting. In case of a tie, however, the Chairman shall have a casting vote.
  4. The Board may draw up its own rules of procedure
  5. Allowance to be paid to members of the Board shall be determined by the Government.
11.    Powers and Duties of the General Manager
  1. The General Manager shall be the chief executive of the Authority and shall, subject to the general directives of the Board, direct and administer the activities of the Authority.
  2. Without limiting the generality stated in sub-Article (1) of this Article, the General Manager shall:
    1. exercise the powers and duties of the Authority specified in Article 5 of this Proclamation;
    2. employ and administer employees of the Authority in accordance with directives to be approved by the Board in observance of the basic principles of federal civil service laws;
    3. prepare and submit to the board the annual budget and work programme of the Authority and implement same upon approval;
    4. effect expenditure in accordance with the approved budget and work programme of the Authority;
    5. represent the Authority in all its dealings with third parties;
    6. prepare and submit to the Board the operational and financial reports of the Authority.
  1. The General Manager may delegate part of his powers and duties to the officials and other employees of the Authority to the extent necessary for the efficient performance of the activities of the Authority.
12.    Social Security Appeal Tribunal
  1. There shall be established a Social Security Appeal Tribunal which shall examine and give final decision on appeals made against decisions of the Authority relating to social security rights and benefits.
  2. The designation of members of the Tribunal and its organizational structure shall be determined by Government directives.
  3. Appeal shall be made to the Tribunal within one year from the date of the decision against which the appeal is to be taken.
  4. The Tribunal may reverse, vary or confirm decisions of the Authority against which appeals are taken.
  5. The Tribunal shall adopt its own rules of procedure.
13.    Budge The Budget of the Authority shall be drawn from the following sources:
  1. revenue generated by the Authority from investments and otherwise; and
  2. subsidy allocated to it by the Federal Government.
14.    Books of Accounts
  1. The Authority shall keep complete and accurate books of accounts.
  2. The books of accounts and other financial documents of the Authority shall be audited annually by the Auditor-General or by auditors designated by him.
15.    Repeals The following are hereby repealed:
  1. Articles 35 to 41 of the Public Servants Pension Proclamation No. 209/1963 (as amended);
  2. Public Service Pensions Commission Charter/Legal Notice No. 250/1962.
  1. Transfer of Rights and Obligations
The rights and obligations of the organ used to be known, de facto, as the Pensions and Social Security Authority are hereby transferred to the Authority.
16. Effective Date This Proclamation shall come into force as of the 2nd day of July, 1996.
Done at Addis Ababa, this 2nd day of July, 1996.

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