Relationship Between the Social Security Investment Board and Social Security Corporation Board
Governance and Control Structure:
The Social Security Law defines the duties and powers of the Social
Security Corporation Board of Directors that govern the investments of
the Social Security Corporation that are managed by the Social Security Investment Fund.
The Social Security Corporation Board approves the general investment policy of the Social Security Corporation
that aims at maximizing the market value of its assets, sets investment
objectives, develops investment standard, mechanisms and determinates, approves
the general investment plan in addition to approving the annual budget.
The Social Security Corporation Board is chaired by the Minister of Labor and comprises: Director General of the Social Security
Corporation, Chief Executive Officer of the Social Security Investment Fund, the Deputy Governor of the Central Bank of Jordan
for investment affairs, a representative of the Armed Forces and security
apparatuses nominated by the Council of Ministers, two representatives of trade
unions, nominated by heads of trade unions: one represents employers and the
other represents professionals, four representatives of laborers that are
nominated by the General Federation of Labor Associations and four
representatives of employers: two are selected by Jordan Chamber of Industry
and two are selected by Jordan Chamber of Commerce.
There are three committees emanating of the Social Security Corporation Board: Control Committee, Good
Governance Committee and Overall Risk Management Committee. These committees fulfill
the duties that are defined by the Law and the related Social Security Corporation Board resolutions.
Then comes the Social Security Investment Board that develops the
general investment policy and general investment plan that are approved by the Social Security Corporation Board. It also oversees the implementation of the general investment policy and
develops the plans and make the necessary invest decisions to implement the
said policy.
There are three committees emanating of
the Social Security Investment Board: Audit Committee, Investment Governance Committee, and
Investment Risk Committee. These committees duties and powers are defined in
the Social Security Investment Fund and Investment Board bylaw that is issued
pursuant to the Social Security Law.
It’s worth mentioning that there are
four members that sit on both boards: Director General of the Social Security Corporation, Chief Executive Officer of the Social Security Investment Fund, Employees Representative and workers Representative. For governance purposes, the Chief Executive Officer of the Social Security Investment Fund is not a member in any of the committees emanating from Social Security the Investment
Board.
Reporting System:
The
Social Security Investment Board minutes of the meetings and resolutions are submitted to Social Security Corporation Board for acknowledgement. The Social Security Investment Fund also
submits a follow up report to the Social Security Corporation Board on the actions taken by the
Social Security Investment Fund to execute those resolutions.
In addition,
the Social Security Investment Fund also submits quarterly reports to the Social Security Corporation Board, which in turn submits the
reports to the Council of Ministers and the Parliament outlining the Social Security Investment Fund’s financial
performance and investments.
It’s worth
mentioning that under the enforced Social Security law, there are four members that sit on both
Social Security Corporation Board and the Social Security Investment Board: Director General of the Social Security Corporation, Chief Executive Officer of the Social Security Investment Fund, Employees
Representative and Workers Representative.