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FEDERAL NEGARIT GAZETA OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

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2ndYear No. 26 ADDIS ABABA- 2'''1July, 1996

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ProclamationNo. 38/1996 Social Security Authority Establishment Proclamation

Page 190

PROCLAMATIONNO. 38/1996 A PROCLAMATION TO PROVIDE FOR THE ESTABLISHMENT OF THE SOCIAL SECURITY AUTHORITY

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WHEREAS, it is. necessary to organize the Social ih1 I Security Authority in such a way as to enable it perform its nh..,}'r-k,f' ~1..t.I\'P. .It'l"ht,.l1.J''P. ~T-ol\.h , duties efficiently; I. "",..,,,..:,. h""'" ~l?;(ii)""'Pl.'}- fll1.h.,.r\m. ;J~fDol(AII NOW,THEREFORE,in accordance with Article 55(1)of ii' "'..: .:/)11 the Constitution, it is hereby proclaimed as follows: I. Short Title ',11 h'l''-~ "M10t,.'P. Ifil.}.tj 11r\"..AtIJ' "'I**OI/.J' hlf~ This Proclamation may be cited as the "Social Security Authority EstablishmentProclamation No. 38/1996." 2. Establishment

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1. There is hereby established the Social Security Authoritylhereinafter "the Authority" / as an autonomous federal public office, having its own juridical personality. 2. The Authority shall be accountable to the Council of Ministers. .

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The objectiveof the Authority shall be to strengthen and expand social security programmes. 5. Powers and Duties

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The Authority shall have the powers and duties to:

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1. implement social security laws, regulations and directives;

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2. undertake studies to strengthen and expand social securityprogrammesand submit sameto the Government;

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3. collect social security contributions, ensure that proper records of same are kept by every employer, inspectsuch recordsand documentswhere necessary and take legal action against employers who fail to pay in contributions and to furnish information on time;

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6. determine the amount of social security benefit to which a rightful claimant is entitled pursuant to the relevantlaw; ensure that preparationof the necessary documentsis completedand thatpayment is properly effected;

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7. publicize centres already designated for payment of social security benefits and, where necessary, desingate new ones in cooperation with appropriate institutions;

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8. decide on claims relating to social security rights and benefits submitted to it in accordance with the relevant laws;

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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;

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10. causeperiodicalactuarialstudyand reviewof thesocial security schemes;

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11. ownproperty,enter intocontracts,sue and be sued in its own name;

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12. carry outsuchotheractivitiesas may benecessaryfor the fulfilment of its objective.

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administer social security funds and maintain separatebooks of accounts for each fund;

5. collect in advance, verifyand record evidentiary data that entitlepersons to social security benefits; update such records upon notification of changes received from employers from time to time;

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The Authority shall have its head office in Addis Ababa and may have branch offices elsewhere as necessary. Objective

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Organizationof the Authority The Authority shall have: 1. a Board of Management(hereinafter"the Board"); ?

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a General Manager to be appointed by the Government; and the necessary staff.

Members of the 'Board Members of the Board, including the Chairman thereof, shall be appointed by the Government with their number to be determined as necessary.

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8. Powersand Duties of the Board The Board shall have the powers and duties to: l. as the superior body, direct and supervise the ~, fl)t\P'AII}).1 f~,6I!'C/I' flo~'/" .tlL /)~1.' 'h1.cto-'/" activities of the Authority; l}uP:"'f. fp'l.. T(~'''II..,/"e; n:f..}. ooC'/"r.' 11&1.'.I\~ 3. supervisethe administrationof social security funds; ensure thatplans for investment,to be made pursuant oPuP(..f oP""lo'}' uPt.1&"7TOJ-1 ~"'lIJm/..A; to Article 5(9) of this Proclamation, are effected in !!, f')t\P'AII))'1 l}oP:"'f. fr'l,. fit,~1&'/" ('7'C'}' 11&1.' ,PA: compliance with general directives of the Government; {;, nfJ'e;(D' 1"1., fiittl,f1: n"7,+cf1' fl)t\r'AIIJ)'1 fiit.,.J; 4. approve the annual operational report of the f.C/; fioPI,.c n"7,oPt\h": hot\°1' 1,J;f''.f- I\~ Authority; ',lJJfle;A:: 5. decide on such other matters submitted by the ;1' f,IC.&;' it.n(}'1 General Manager, as relating to the administration {i' 'IC,&;.nY'it.}. OlC fi'B'.: 'UL ~(}f1(}l)A: lI"i,/" fiitt,I\.t and management of the Authority. .r'i (},1~ f1(}11I}n.(D' "'I. f1OYfiTOJ-'/"'LIL t\.(}f1(}11 {i'

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9. Meetings of the Board I. 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 memberspresent 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.

10. Powers and Duties of the GeneralManager I. The General Manager shall be the chief executive fl)t\p'AIIJ).1 r'1..?':}"~oPI,.A: lit,,.J;1.'I,.A :: of the Authority and shall, subject to the general directives of the Board, direct and administer the ~, 'ULUfi'}+1&'10.itfi1+1&'(j!) f,"oPt\h,,.OJ- fiill.
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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. 12. Budget 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. 13. Books of Accounts

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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.

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Transfer of Rights and Obljgations 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.

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effect expenditure in accordance with the approved budget and work programme of the Authority; (e) represent the Authority in all its dealings with third parties; (f) prepare and submit to the Board the operational and financial reports of the Authority. 3. The General Manager may delegate pall 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.

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Done at Addis Ababa, this 2ndday of July, 1996. NEGASO GIDADA (DR.)

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PRESIDENTOF THE FEDERAL DEMOCRATIC REPUBLIC OF ETIlIOPIA

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