NASSIT Strategic Plan 2005 -2007



FOREWORD …………………………...…………………………………………………………….2 SECTION 1: FOUNDATIONS……………..…..…………………………………………….………3 1.1 1.2 PURPOSE AND SCOPE ……………………………..…………………. ……..3 THE STRATEGIC PLANNING PROCESS …………..……….……………........3

OUR MISSION………………………………………………………………………………...…….4 OUR VISION……………………………………………………………………………………..…..4 OUR CORE VALUES………………………………………………………………………………..5 SECTION 2: THE SCHEME AND OUR ORGANISATION……………………………………..….6 2.0 2.1 2.2 SECTION 3: 3.1 3.2 3.3 SECTION 4: SECTION 5: 5.1 5.2 SECTION 6: 6.1 6.2 APPENDICES APPENDIX 1: APPENDIX 2: APPENDIX 2a: APPENDIX 3: APPENDIX 4: Risk Management Strategy………………………………………………….42 Proposed Pattern of Spending …………..…………………………………43 Operating Financial and Actuarial Performance Indicators ………...44 Organogram………………………………………………………………...…45 Management Staff (2005)………………………………………………...…46 OUR SERVICE...………………………………………………………………….6 THE SCHEME…………………..……….…………….......................................6 OUR ORGANISATION……….….………………………….……………...……7 INTERNAL ANALYSIS……....………………………………………………..….10 NASSIT at Three………..………………………………………………………10 THE JOURNEY SO FAR: A Strategic Review …………………………… ...11 STRENGHTS, WEAKNESSES, OPPORTUNITIES AND THREATS…………..…11 EXTERNAL ENVIRONMENT……………………………………. ………………14 STRATEGIC DIRECTIONS: Moving from Vision to Action …………..……18 CORPORATE POLICIES………………….…………………………………….19 CORPORATE OBJECTIVES AND STRATEGIES………….…………………...22 IMPLEMENTATION, MONITORING AND EVALUATION…………………….37 PERFORMANCE ASSESSMENT MEASURES …………..……………………..37 THE MANAGEMENT BY OBJECTIVES (MBOS) AND BEHAVIOURALLY ANCHORED RATING SCALE (BARS)……………………………………...…37


NASSIT Strategic Plan 2005 -2007

We have come to the end of yet another year, the third in the life of NASSIT and like Death and Birth which compliment each other; the end of one year connotes the beginning of another. So our journey through time continues. The big questions are; where are we, to where are we going and how do we get there. Hopefully our quarterly and annual reports keep on reminding us where we are so that part of the puzzle as to where we are is spoken for. It is however imperative to have a clear vision as to where we want to go, and develop the necessary strategies to get there. At this juncture, let me refer you to a quotation from the Holy Bible, Luke Chapter 14, verse 28 which states: “For which of you intending to build a tower, sitteth not down first and counteth the cost, whether he has sufficient to finish it lest haply after he hath laid the foundation and is not able to finish it, all that behold it begin to mock him saying; this man began to build but was not able to finish”. This quotation clearly shows that all human endeavours which lead to the use of resources must be planned, but after planning we must necessarily sit down first and count the cost; budget. We need to know to what level we want to build the tower of Social Protection over a specific period and how much it costs. Happily my counterpart who takes over from me soon is not only a firm believer in planning and budgeting, but even more importantly has been part of it at the National Level for many years. Since the provision of social protection which is the raîson d’être of the existence of NASSIT is a continuous process, our planning and budgeting must also necessarily be continuous. NASSIT is barely 3 years old and some of the setting-up processes are yet to be completed. As such we believe long term plans at this stage will end up being a wish list with a very high probability of wide deviation of plans from reality. In every human endeavour it is not unusual to encounter opportunities and threats that may necessitate variations and innovations as we go along our journey, especially at this time in our National life and in these early years of NASSIT. It is for these reasons that regardless of the period in which we are with regards to our plan, we hope to be bold enough to allow ‘BETTER’ to FORCE out ‘GOOD’.

Eric N. A. Adjei
Director General (2002 – 2004)


NASSIT Strategic Plan 2005 -2007

SECTION 1 FOUNDATIONS 1.1 Purpose and Scope

The goal of this strategic plan is to build on our recent past, define our future and map out ways that help us focus our energies on doing better over the next three years. The Plan has been developed to ensure that all stakeholders are working towards the same goals, while developing a strategy for achieving those goals. The Plan tries to create a balance between “dreams” and “reality”. It provides strategic directions of the Trust’s medium term activities, specifies implementation responsibilities and performance monitoring and evaluation indicators. This Section provides the foundations for the Trust’s Strategic and Business Plan for the period 2005 – 2007. It states the purpose and scope of the Plan, explains the strategic planning context and defines a renewed mission, vision and core values. Section 2 explains the features of the Scheme and the organisation of the Trust, while Section 3 describes the operating environment for the Trust’s activities. Section 4 outlines the Strategic Directions, which are closely aligned with NASSIT’s mission and vision. Each Strategic Direction consists of a clearly stated objectives and strategies. 1.2 The Strategic Planning Process

The process of developing this plan has been participatory at all levels of Management and the Board. A Strategic Planning Committee was appointed to steer the process. All levels of staff have contributed to the strategic planning process to ensure that the plan is realistic and helps create motivation to implement the plan. The Plan incorporates feedback on the Trust’s history, its strengths, achievements and challenges while spelling out our opportunities and threats to accomplish corporate objectives. The various Divisions/Departments have developed business and activity plans in line with each strategic objective. Performance indicators and targets have also been agreed for the plan period.


NASSIT Strategic Plan 2005 -2007 Box 1.0: The Planning Context MISSION









“To administer a Social Security Scheme that provides financial Security to all employees in Sierra Leone in the form of old age benefits, invalidity benefits, and survivors’ benefits, based on social insurance principles.” OUR VISION

“The National Social Security and Insurance Trust will be the centre of excellence providing quality Social Security Protection through promoting a culture of high quality performance among its staff.”

Underlying its mission, the Trust shall strive for excellence in all its operational and functional areas to meet the social protection needs of Sierra Leoneans.


NASSIT Strategic Plan 2005 -2007

Our corporate Mission and Vision are strengthened by basic values that describe and underpin the way we carry out our business. Our core values are the touchstones that guide how we work and what qualities we value in ourselves and our stakeholders. The Trust’s FOUR core values are: EXCELLENCE We aim to provide excellent services to our members and customers by: • Striving to identify and understand their needs • Recognising them as the reason for our existence • Encouraging feedback from them as an opportunity to improve

TEAMWORK Our staff members think and function as a team as: • We recognise the strength in teamwork • We believe in internal democracy (matching rights with responsibilities) • We support personal endeavours for organisational achievements

ACCOUNTABILITY We demonstrate accountability to all our stakeholders through: • Transparent decision-making SECTION I • Setting of achievable objectives • Reporting of results and continuous improvements of processes and programmes

RESPECT Our staffs treat each other, our members and other stakeholders with dignity and civility since: • We believe that the aged and disabled contributed to society’s development and can still participate in society • Combating poverty and promoting financial security and independence in retirement maintains self dignity


NASSIT Strategic Plan 2005 -2007

SECTION 2 THE SCHEME AND OUR ORGANISATION 2.0 OUR SERVICE The National Social Security and Insurance Trust (NASSIT) is a Statutory Public Trust set up by the National Social Security and Insurance Trust Act No. 5 of 2001 to administer Sierra Leone’s National Pension Scheme. The primary responsibility of the Trust is the part replacement of income lost as a result of the contingencies of old age, invalidity and death. To meet the responsibilities set out in the Act, the core functions of the Trust are to: • Collect contributions • Keep records on members • Invest and manage the funds of the scheme • Process benefits and effect payments to eligible members. 2.1 THE SCHEME

2.1.1 Membership Membership is mandatory for all workers in the public and private sectors with an employer-employee relationship. It is mandatory for all employers to ensure that their workers are registered with the scheme. For the self-employed, membership is voluntary. 2.1.2 Contingencies The three contingencies covered by the scheme are: old-age, invalidity and death. 2.1.3 Funding and Financing The Scheme is financed from three sources: 1. 2. 3. Contributions from Employers and Employees; Investment Incomes; and Penalties

Financing of the Scheme comes primarily from contributions and investment earnings. Accumulated reserves are invested so that the present excess income can pay for future benefits.


NASSIT Strategic Plan 2005 -2007

The current contribution rates are based on partial funding, using the scaled premium method with an equilibrium period of 20 years. A key assumption to sustaining this financial equilibrium is a rate of return on investments of 15 percent in Year 1; 14 percent in Year 2; 13 percent in Year 3; and 12 percent in year 4 and thereafter. 2.1.4 Contributions

Monthly social security contribution is deducted from basic salary. The current contribution rate of 15 percent consists of 10 percent from the employer and 5 percent from the employee. Self-employed persons pay 15 percent of declared incomes. On registration, each member is issued a social security card with a unique social security number that is valid forever. The Scheme is portable, i.e., credits are transferable from one place of employment to the other. The new employer will continue to pay social security contributions on the earnings of the employee. The Scheme also allows concurrent contributions, that is, when an employee is concurrently employed by more than one employer, all his employers must pay National Social Security contributions on behalf of the employee. 2.2 OUR ORGANISATION 2.2.1Structure of NASSIT The Trust is governed by a Tripartite Board of Trustees, with representation from Government, Workers and Employers. A Management team of experts in various fields run the day-to-day affairs of the Trust. The Trust is headed by a Director General, who is the Chief Executive, and is assisted by two Deputy Director Generals and five Directors. The structure (See Annex2) is as follows: • • • • • • The General Directorate Finance Division Technical Division Operations Division Legal and the Secretariat Division Public Affairs and Training Division


NASSIT Strategic Plan 2005 -2007

2.2.2 Human Resources As at end 2004, the total staff strength of NASSIT stood at 155, of which, 119 or 77 percent are male and 36 or 23 percent are female. The breakdown of employees by level and sex, as well as the total workforce by spatial distribution are provided in Tables 1 and 2 below.
Box 1: Sex Distribution of Staff

Female 23%

Male 77%

Table 1: Staff Distribution by Level and Sex Male Senior Management Middle Management Senior Support Staff Intermediate Support Staff Junior Support Staff Total 21 6 67 32 29 155 No 19 4 53 14 29 76.8% % 90.5 66.7 79.1 43.7 100 Female No % 2 9.5 2 33.3 14 20.9 18 56.3 0.0 0.0 23.2%

Table 2: NASSIT Work Force.
Head Office




NDB Building, Freetown




Area Offices

West North East South

29 -

36 2 2 2

50 13 11 10







NASSIT is housed in six rented premises nation-wide. The efficient functioning of the Trust is heavily dependent on Information Technology infrastructure. An efficient Management Information Systems is crucial for


NASSIT Strategic Plan 2005 -2007

maintaining an accurate database on members; payment of benefits; enhancing internal controls; and proper planning. The Trust currently operates Local Area Networks in all its offices. A Wide Area Network (WAN) and a Biometric Registration system are expected to be operational in 2005. The WAN will improve MIS by making information available to users in real time. The biometric registration will substantially eliminate fraud and speed up the processing of benefit payments.


NASSIT Strategic Plan 2005 -2007

SECTION 3 INTERNAL ANALYSIS 3.1 NASSIT AT THREE The National Social Security and Insurance Trust (NASSIT) commenced collecting contributions on 1st January 2002. Despite initial establishment difficulties, tremendous progress has been made in the Scheme’s operations. A summary of the Scheme’s performance is provided in Table 3 and Boxes 2 and 3 below.

Table 3: Summary of NASSIT’s performance (2002 – 2004) (Le ‘000)
Contributions Received Investment Income Other Income Total Income Benefits payment (incl’d contributions returned) General and Admin. Expenses Total Expenditure Excess of Income over expenditure Total expenditure as a % of total income Total expenditure as a % of total contributions Real rate of return on investment (%) 2002 12,505,008 289,133 12,596 12,806,737 1,691,205 1,691,205 11,115,532 13.2 13.5 2003 30,327,352 4,120,796 3,995 34,452,143 54,470 3,249,975 3,304,444 31,147,699 9.6 10.9 3.94 2004 28,891,026 11,328,204 9,060 40,228,290 311,274 6,874,727 7,186,207 34,409,605 17.9 24.9 7.64

Box 2: Where is the Money Coming From ?
4000000 3000000 L e '0 0 0 2000000 1000000

Box 3: Where is the Money Going To ?

35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 2002 2003 Investment Income 2004 Other Income

Le '000

0 2002 Benefits payment 2003 Staff Costs 2004 Other Admin. Overheads

Contributions Received

Membership Membership of the scheme is open to employees in the formal sector, both private and public sectors, where an employer-employee relationship is easily identified. As at end December 2004, the contributing population was approximately 103,438.


NASSIT Strategic Plan 2005 -2007

Contribution collection Contribution collections increased by about 131 percent from Le 12.5 Billion to Le 28.9 Billion in 2004. Increases in compliance and coverage largely account for the increase in contribution collections. Benefit Payments Benefit payments have been in the form of grants – one off payments, since insured members do not satisfy the qualifying conditions for full pensions. Since January 2003, a total of about 392 benefits have been paid in respect of retirement and survivor grants. Full pension payments will commence and expenditures on benefits payments are expected to rise during the plan period. The validation of past services of Government workers could substantially increase the number of scheme members that will qualify for pension. Private sector workers are allowed to purchase credits. 3.2 The Journey So Far: A Strategic Review This section briefly presents a strategic review of the journey so far by highlighting the strengths, weaknesses, opportunities and threats that have exerted important influences on the activities of the Trust. 3.3 Strengths, Weaknesses, Opportunities and Threats

3.3.1 Existing Corporate Policies Since its inception, the Trust has maintained strategic corporate policies, which focused on the following broad objectives: Optimising Operations Management Building a strong Management Information System Creating and strengthening legal services available to the Trust Proper financial management Prudent investment of accumulated funds Creating and maintaining a good corporate image and fostering public education on the activities of the Trust Enhancing human resource capacity An assessment of the processes in the implementation of the corporate plan for 2002 – 2004 shows the following strengths, weaknesses, opportunities and threats, as viewed by the Management Team.


NASSIT Strategic Plan 2005 -2007

3.3.2 Strengths The mandatory nature of the scheme helps enforce compliance by establishments The high quality of core staff of the Trust and dedicated work team; the Trust has so far enjoyed internal peace A strong information technology system foundation, which eased the implementation of programmes Fairly conducive workplace conditions and working environment Little or no competition in the pensions industry as the benefits defined under the Scheme present far better conditions than those under the status quo ante 3.3.3 Weaknesses Bottlenecks and delays in implementing approved programmes due to breaks in communication between Management and the Board of Trustees Skewed distribution of resources and work inputs between Head Office and Area offices Lean staff structure, causing staff to engage in constant ‘fire fighting’ and not follow through on programmes and attain targets The inability to make maximum use of existing IT infrastructure Relatively low levels of internal communication of programmes and activities, making some sections of staff not fully abreast with the activities of other sections 3.3.4 Opportunities An expansion in economic activities nationwide The largely untapped informal sector of the economy as a way of expanding the contribution base Planned improvements in the financial sector to make the domestic market more competitive and efficient The high expectations of the public making it easier to market the activities of the Trust Relative ease and minimal cost of training already highlyskilled and talented staff The improvement in the communication channels between Board and Management The Trust’s membership of multilateral organisations such as the International Social Security Association (ISSA) and the International Labour Office (ILO), making it easier to benefit from capacity building and knowledge sharing on best practice.


NASSIT Strategic Plan 2005 -2007

The effective and efficient utilisation of Trust resources in meaningful investments, to positively impact on the national economy A peaceful political situation and Government’s commitment to macroeconomic stability 3.3.5 Threats The possibility of substantial defaulting by establishments Rapidly rising inspection and benefit payment needs over and above available staff capacity of the institution, which may create room for fraud and apathy Aggressive and hostile sections of the public A weak operational infrastructure, which would undermine the effectiveness of the administration of the scheme. Poor internal networking, leading to inefficiencies in the implementation of programmes.


NASSIT Strategic Plan 2005 -2007


The ten-year civil conflict left in its wake devastating social and economic consequences. Most of the country’s infrastructure was destroyed, including communities and basic social infrastructure. The conflict was officially declared over in January 2002. Presidential and legislative elections were successfully conducted in May 2002. Political devolution has progressed rapidly. Local Government elections were successfully conducted in May 2004, the first in 32 years. A comprehensive plan for devolving functions to local councils has also been prepared, the implementation of which will begin in 2005. In 2004, the United Nations Security Council commenced a gradual phased withdrawal of the United Nations Peace Keeping Mission in Sierra Leone (UNAMSIL), taking into account a number of securityrelated factors, including the continued restructuring and development of the national military and police forces to prevent renewed instability. A Truth and Reconciliation Commission (TRC) was set up as a mechanism to help heal the war-related “wounds”. The Commission successfully concluded its work in June 2004 after two years. A UN-sponsored Special Court was established in 2003 for prosecuting those that “bore the greatest responsibility for war crimes” 4.2 The Macroeconomic Situation

The economy enjoyed a robust recovery in the period 2001 – 2003. The strong output growth reflected an expansion in agriculture, mining and manufacturing. Real GDP growth for the medium-term is expected to average 6 - 7 percent per annum. Output growth is expected to come from further expansion in agriculture, mining and manufacturing activities, as well as public investments in infrastructure projects. Inflation is projected to reverse to single digits in the medium term. Inflationary pressures persisted in late 2003 and throughout 2004. In 2004, inflation is expected to average 15 percent on an annual


NASSIT Strategic Plan 2005 -2007

basis due to higher crude oil prices, expansionary monetary policy and depreciation of the exchange rate. However, inflation will return to single digits during the medium-term. In 2005, inflation is projected to average 8.5 percent on an annual basis. The Government’s overall medium-term strategy for sustaining high growth and reducing poverty for the period 2005 – 2007 focuses on key areas comprising (i) strengthening state security, (ii) a sustainable fiscal position, (ii) promoting savings and investments, (iv) infrastructure development, (v) agriculture and rural development, and (vi) promoting growth of private sector businesses. Fiscal policy is expected to seek enhanced revenues to address the problems of increasing domestic debt and interest rate pressures. This will be supported by measures to rationalise the tax system, incorporate mineral revenues and improve the expenditure management process. Monetary policy will be restrictive to contain inflation. The general financial environment is marked by a noticeable expansion in the banking sector, as assets of the banking system grew rapidly from 2000 – 2003. This expansion was fuelled, on the liability side, by a rapid growth in deposits. In the medium term, Government is expected to continue financial sector reforms, geared towards achieving a competitive and efficient financial sector to support private sector development. Steps are being taken to improve the credit risk management capacity of banks. 4.3 The Poverty Situation

The results of the Integrated Household survey conducted in 2003/04 show that poverty is pervasive and widespread. About 70 percent of the population is poor. Poverty is also heavily concentrated in rural areas, with nearly 80 percent of the rural population living in poverty. Poverty was also seen to be prevalent in rural areas, in the agricultural sector and among households headed by females. The Government in collaboration with relevant stakeholders has prepared a Poverty Reduction Strategy Paper (PRSP). The PRSP proposes multisectoral interventions in the economy to cultivate growth and improve service delivery for the reduction of poverty through:


NASSIT Strategic Plan 2005 -2007

i. Achieving pro-poor sustainable growth by increasing agricultural production and improving infrastructure; ii. Promoting human resource development aimed at enhancing the capacity of the poor; and iii. Increased capacity for good governance, security and reconciliation. 4.3.1 The Pension Industry Prior to the establishment of NASSIT, the pension industry in the country was fairly rudimentary, consisting of an inefficient Public Sector pension scheme and small individual employer-supported Defined Contribution schemes in a few well-established private institutions. The creation of NASSIT marked a watershed in the industry. 4.3.2 Other Factors Stock Exchange: There are plans to establish a capital market/stock exchange in Sierra Leone to facilitate medium and long-term financing. The establishment of a Venture Capital Corporation is also being planned to facilitate a sound privatisation programme, while building capacity to serve the capital needs of Small and Medium scale Enterprises (SMEs).

Investment Code: The Government recently developed an Investment Code, which is an important cornerstone for investment promotion in Sierra Leone. It is expected to serve as a tool to attract foreign investments as well as enhance domestic private investments. The Code makes references to investment incentives and makes recommendations for the application of the principles therein to the relevant laws.

Legal and Regulatory Framework: The legal environment for investments in Sierra Leone require significant improvements with respect to clarity, stability, openness and ‘up-to-datedness’. The country’s legal system is based on the English law tradition. Even though there have been several changes in the English laws to meet emerging trends, the laws of Sierra Leone, especially those relating to investments, have not gone through many changes. The Companies Act (CAP 249) which became law in 1929 has not substantially changed to meet current needs.

With the conflict over, steps are being taken to update and reform existing legislation and introduce new legislation to improve the climate. The Law Reform Commission was established in 2003 to address a number of issues aimed at


NASSIT Strategic Plan 2005 -2007

improving the legal aspects of the investment climate. The AntiMoney Laundering law has been enacted; while a number of other legislations have been drafted, including the Bankruptcy Bill, and the Securities Bill. The Ministry of Trade and Industry is the regulator of the investment sector. Currently, there are many registration and licensing requirements in the country that need to be shortened as a way of minimising the administrative hurdles. The Sierra Leone Export Development and Investment Corporation (SLEDIC) was established to promote investments, provide assistance to investors, register and monitor businesses and give policy advise on investments to Government. The current programmes of SLEDIC aim at ensuring that investors take about three days to register a company, as well as providing other services through a one-stop shop.


NASSIT Strategic Plan 2005 -2007

SECTION 5 STRATEGIC DIRECTIONS: Moving from Vision to Action The Trust has developed the following strategic directions and objectives for the plan period 2005 -2007.

OBJECTIVES Expand Coverage Increase contributions and improved data management Accurate and prompt processing and payment of Benefits A single effective logical data repository, to support NASSIT’s business activities in all locations Proper maintenance and security of information and records A sanitised and well-structured database Efficient information and communication services A strong research and planning structure Enhanced Policy design and implementation systems A strong planning culture Proactive measures to protect the interest of the Trust Ensure that legislations and regulations make the Trust to its operating environment Reinforced knowledge of the legal framework of the Social Security Scheme Enforce compliance with the provisions of the NASSIT Act An efficient financial reporting system A comprehensive set of accounting and financial principles Enhanced efficiency in expenditure management process Increase public awareness of the Scheme Increase public understanding of the Scheme Increase number of stakeholders Improve services to members and customers Promote staff loyalty An optimum global portfolio framework Achieve benchmark rate of returns Maintain requisite liquidity Enhance investment impact on national economy Ensure a robust risk management process To be an organisation that is recognised for excellence Ensure staff levels and skills are at the level needed to meet service standards Recruit, develop and retain a high-performing workforce Develop and implement an appraisal system to motivate staff








NASSIT Strategic Plan 2005 -2007



Corporate policies have been designed under the following strategic directions: 5.1.1 Operations Management The Trust shall strive for an expanded coverage of its operations in both the formal and informal sectors of the economy The Trust shall strive to increase contributions and manage efficiently members’ records. The Trust shall issue periodic record of contributions. The Trust shall institute an efficient benefits Administration system that ensures the prompt payment of benefits as they fall due. 5.1.2 Management Information Systems The Trust shall implement state-of-the-art technology for all its activities so as to enhance efficiency and productivity. The Trust shall maintain a reliable database with high level of security for members details and other management information The Trust shall strive to integrate its internal operating systems to streamline workflows and minimise fraud The Trust shall strive to provide efficient information and communication services 5.1.3 Research Planning and Actuarial Services The Trust shall establish a strong Research, Planning and Actuarial team to periodically monitor and evaluate the implementation of the Scheme. The Trust shall be pro-active in the formulation of national social security policy. The Trust shall undertake triennial actuarial valuations of the Scheme in the first ten years of its operation. The Trust shall promote a planning culture in the operation of the Scheme


NASSIT Strategic Plan 2005 -2007

5.1.4 Legal Services The Trust shall protect its legal interests in operational transactions and its assets within the framework of the laws of Sierra Leone. The Trust shall ensure its operations and regulations are responsive to socio-economic conditions The Trust shall facilitate the introduction of an appropriate social security scheme for the informal sector The Trust shall enforce full compliance with the provisions of the National Social Security and Insurance Trust Act No. 5 of 2001. 5.1.5 Financial Management The Trust shall establish an efficient financial reporting system The Trust shall adhere to strict budgetary discipline. The Trust shall develop a comprehensive set of accounting and financial principles The Trust shall ensure efficiency in expenditure management 5.1.6 Public Education and Corporate Image The Trust shall promote public awareness of the Scheme The Trust shall ensure an increased understanding of the role of the national social security scheme. The Trust shall strive to achieve customer satisfaction in all its dealings with the public. The Trust shall promote employee loyalty 5.1.7 Investments management The Trust shall develop and maintain an optimal portfolio of assets The Trust shall strive to achieve the benchmark rate of return The Trust shall carry out periodic measurements and evaluation of portfolio performance The Trust shall strive to maximise the impact of its investments on the national economy The Trust shall ensure corporate governance in its portfolio companies.


NASSIT Strategic Plan 2005 -2007

5.1.8 Human Resources The Trust shall ensure staff numbers and skills are at the levels needed to meet service standards The Trust shall recruit, develop and retain a highly competent and motivated staff The Trust shall develop and implement an appraisal system to monitor staff performance and motivate staff The Trust shall be an equal opportunities employer


NASSIT Strategic Plan 2005 -2007



The broad corporate objectives have been derived based on the policies outlined above. Supporting strategies have developed to facilitate attainment of these objectives. Divisional/Departmental activity plans will be developed to link the corporate strategies with the business level plans.

5.2.1 Strategic Direction 1: Improved Efficiency in Operations Growth in membership and collection of contributions are crucial to the survival of a contributory social insurance scheme. Under this scheme the contributions of active contributors support the benefit payments of retirees. The size of the contributor population is, therefore, an important factor in the long-term sustainability of the scheme. The strategies set out below are expected to help the Trust improve on the level of participation and quantum of contributions to facilitate prompt payment of benefits as they fall due.
Strategic Objective 1: Expand Coverage

o Increase participation rate of the total working population. o Encourage informal sector participation o Promptly issue Social Security Cards to registered members.


NASSIT Strategic Plan 2005 -2007

Strategic Objective 2: Data Management






o Strengthen contribution collections o Increase compliance rates o Reduce indebtedness on contribution payments o Issue statements of accounts to members on request
Strategic Objective 3: Accurate and prompt processing and payment of benefit claims


o Maintain and update data on members to ensure prompt and accurate computation of benefits o Prevent delays by educating members/beneficiaries on documentary requirements for claiming benefits. o Develop and equip an efficient claim processing and benefitpayment structure o Zero tolerance of contributor/beneficiary fraud.


NASSIT Strategic Plan 2005 -2007

5.2.2 Strategic Direction 2: Improved Service Delivery using Information Technology Social security administration is heavily dependent on efficient record keeping especially since the transactions span over a long period of time. Maintaining records and management using stateof-the-art technology would ensure that contributors’ details are efficiently managed to provide reliable and timely information for use by all stakeholders. The strategies below are aimed at ensuring that NASSIT records are reliable, accurate, consistent, and can be speedily retrieved for key operational processes and decision-making.
Strategic Objective 1: Maintain a single Head Office and all Area Offices

logical data repository for the

o Equip all offices with LAN and WAN capabilities to facilitate the integration of business processes and ensure an uninterrupted flow of information. o Efficiently implement all relevant operational system and integrate it with the LANs and the WAN. These systems include NAPOS, Payroll, NASPER, Biometric, PENSIONER etc. o Integrate the Accounting system, Biometric system, and other internal operating systems with the NAPOS system.


NASSIT Strategic Plan 2005 -2007

security for Information and Records

Strategic Objective 2: Maintain a Reliable Database with high level of

o Design in-built security for all databases and operational systems. o Establish back-up strategy and disaster recovery plan to ensure business continuity in case of emergency o Equip the Records Section so that physical records on members would be maintained and retrieved upon demand.

Strategic Objective 3: Achieve a sanitised and well structured database

o Acquire and/or develop the necessary hardware and software to facilitate proper storage, retrieval and usage of data. o Ensure regular update of members’ records. o Provide support to the Operations Division in minimizing beneficiary fraud.

Strategic Objective 4: communication services.





o Design and implement an official website o Provide all necessary communication services in aid of operations and transactions of the Trust.


NASSIT Strategic Plan 2005 -2007


Strategic Direction 3: Enhanced Research, Planning and Actuarial Capabilities

The economic, financial and demographic environment may impact on the Trust’s operations. A strong research, actuarial, and planning team is required to perform sound technical analyses to ensure long-term solvency of the Scheme.
Strategic Objective 1: Strengthen Research and Actuarial capabilities.

o Enhance capacity through training in Actuarial and Research Disciplines, and attachments with other social security institutions. o Make efforts to attract high calibre staff and provide appropriate motivation to retain them. o Promote coordination with other departments/divisions in the Trust as well as local and international research bodies.
Strategic Objective 2: Enhanced Policy Design and Implementation

o Regularly undertake research on topical issues in social security and publish findings o Be proactive in offering Technical advise to the Trust and other policy makers on social security issues o Develop effective systems and procedures for the collection, compilation, interpretation and dissemination of statistical data relevant to the operations of the Scheme. o Monitor and periodically review the operations of the Trust as they relate to the economic, financial and demographic environment. o Provide technical support to all Divisions/Departments in the areas of training, data analysis, research, and policy design and analysis.
Strategic Objective 3: Promote a Planning Culture


NASSIT Strategic Plan 2005 -2007 Strategies/Measures

o Facilitate and coordinate the preparation of corporate/strategic plans as well as individual action and divisional/departmental plans. o Guide, monitor and evaluate the implementation of plans. o Facilitate period reviews of plans and activities.
5.2.4 Strategic Direction 4: Effective Legal Services

Strong legal services are required to support the Trust’s wide range of activities to ensure compliance with the National Social Security and Insurance Trust Act No.5. The Legal Division must always ensure that the interests of the Trust are protected in all its transactions.
Strategic Objective 1: Protect the legal interests of the Trust in all transactions.

o Enhance internal capacity to handle legal matters relating to the Trust. o Proffer opinions to the Trust on the legal aspects of the Trust’s investments and development projects. o Collaborate with relevant Departments/ Division and outside bodies to enforce compliance with the provisions of the NASSIT Act o Make legal representations on behalf of the Trust. o Ensure that all contracts entered into by the Trust are covered by standard Agreements. o Foster corporate confidentiality, secrecy and security.
relating to the Trust are responsive to socio-economic conditions

Strategic Objective 2: Ensure that legislations and regulations


NASSIT Strategic Plan 2005 -2007

o Facilitate and spearhead the formation of a Legislations Review Committee and involvement of all stakeholders in the process. o Enhance appropriate internal legal capacity

Strategic Objective 3: Re-enforce knowledge of the legal framework of the Social Security Scheme.

o Train staff on relevant legal provisions and framework, local and international. o Educate stakeholders on the Act and Regulation and other related framework o Establish a resource base that provides the Trust and other stakeholders with access to social security law, Administrative decisions and commentaries on the laws.


NASSIT Strategic Plan 2005 -2007

Strategic Objective 4: Facilitate the Introduction of a Scheme for the Informal Sector

Study the legislation of other social security schemes covering the informal sector. Establish the legal implications for introducing such a scheme. Draft appropriate legislation for the attention and review of the stakeholders.

Strategic Objective 5: Enforce compliance with the provisions of the NASSIT Act

Develop a mechanism for involving stakeholders in the implementation of the social security provisions. Collaborate with the Operations Division to ensure that the proper procedures had been followed in preparing cases against Defaulters. Make representations on behalf of the Trust.


NASSIT Strategic Plan 2005 -2007

Strategic Objective 6: Provide efficient Secretariat services to the Board of
Trustees and Management.


Develop a mechanism to facilitate prompt preparation of minutes and Board Papers as well as issuance of excerpts of Board Decisions Follow up on actions taken on the implementation of Board Decisions Servicing of the Investments Committee and the SubCommittees of the Board. Provide legal advice to the Trust as and when necessary

5.2.5 Strategic Direction 5: Sound Financial Management Prudent management of the Trust’s resources is critical to maintaining long-term solvency of the Scheme. The Trust’s financial management process shall aim at minimizing costs, while ensuring “value for money”
Strategic Objective 1: Establish an efficient financial reporting system


o Prepare accurate, reliable and timely management reports on the Trust’s finances o Provide statutory consolidated financial statement for external audit o Develop and adopt a financial risk management framework


NASSIT Strategic Plan 2005 -2007

Strategic Objective 2: Develop a comprehensive set of accounting and financial principles for the Trust

o Develop a documented policy on the accounting treatment of specific transactions, based on International Accounting Standards and existing Social Security Laws o Develop internal policies on Fixed Assets Depreciation Contributions Investment Income
Strategic Objective management






o Application of procurement guidelines by enforcing controls, developing a ‘value for money’ approach and economies of scale o Strengthen the management accounts and cash management units of the financial management system o Induction and training of accounting personnel and other relevant officers on accounting standards: Accounting Standards Accounting Software Operational Manual and Returns Reconciliation

5.2.6 Strategic Direction 6: Public Education and Enhanced Corporate Image


NASSIT Strategic Plan 2005 -2007

Public understanding is essential to strengthen public confidence in the Scheme. It is, therefore, important to educate stakeholders while improving our corporate image.
Strategic Objective 1: Increase public awareness of the Scheme

o Distribution of promotional materials, advertisements, commercials, jingles, etc.
Strategic Objective 2: Increase public understanding of the Scheme

o Develop an effective and efficient medium-term Public Information, Education and Communication strategy. o Strengthen internal systems for the processing and transmission of public relations information
Strategic Objective 3: Increase number of stakeholders

o Design outreach programmes aimed at marketing the Trust to prospective members.
Strategic Objective 4: Improve services to members and customers

o Provide high quality customer care and channels for feedback. o Establish customer/member services desks
Strategic Objective 5: Promote staff loyalty


NASSIT Strategic Plan 2005 -2007 Strategies/Measures

o Eschew acts of favouritism, unfair and discriminatory practices o Document, publicise and implement consistent policies and procedures o Promote internal communication o Conduct employee surveys
5.2.7 Strategic Direction 7: Optimum Investment Performance Since its inception, the Trust has strived to efficiently carry out its investments by maximising outputs given available inputs. The Trust shall adopt a medium-term approach in the planning and implementation of investment programmes as it diversifies its assets.
Strategic Objective 1: Ensure an optimal global portfolio framework

o Develop an Investment (Policy) Statement, which outlines the issues of global medium-term allocation of assets and the management of the fund

Strategic Objective 2: Achieve a Benchmark Rate of Return of Wage Inflation + 2 percent on investments

o Carry out thorough analysis of investment options to ensure that the selected mix of investment projects yields maximum output o Conduct market research to provide accurate and up-to-date information to guide investment decision-making.

Strategic Objective 3: Maintain requisite liquidity to guarantee the payment of benefits as they fall due


NASSIT Strategic Plan 2005 -2007

o Develop an efficient Treasury Management system
Strategic Objective 4: Ensure maximum impact of investments on the national economy

o Develop an investment strategy that highlights critical areas for investments with high potential socio-economic impact o Monitor the implementation of this strategy to assess the impact of the investments made therein

Strategic Objective 5: Establish effective and efficient monitoring and reporting mechanisms for the Trust’s investments.

o Develop a programme for periodic monitoring of Trust investments o Strengthen intra and inter Departmental collaboration to ensure timely implementation of monitoring programmes and production of regular reports. o Harmonise the system of reporting with other related arms of the Trust based on generally accepted standards


Strategic Direction 8: Align Staff to Support NASSIT’s Mission

An important aspect of Management is to ensure staffs understand their roles and performance expectations. The Trust shall motivate staff to achieve job goals through an efficient reward system, training and development.
Strategic Objective 1: To be an organisation that is recognised for excellence.


NASSIT Strategic Plan 2005 -2007


o Provide an excellent working environment by maintaining our offices to the highest quality providing staff and customers with a pleasant, safe, secure and healthy environment o Implement a Cultural Action Plan, key to the delivery of future services.
Strategic Objective 2: Ensure staff levels and skills are at the levels needed to meet service standards

o Carry out reviews of staff capacity and workloads o Reduce levels of absenteeism
Strategic Objective 3: Recruit, develop and retain a high-performing workforce

o Effective recruitment of human resources and retention o Leadership and employee development. o Develop strategic competencies and knowledge management o Providing employees with appropriate and better tools
Strategic Objective 4: Develop and implement an appraisal system to monitor staff performance and motivate staff


o Review existing appraisal systems o Develop and implement a performance management system


NASSIT Strategic Plan 2005 -2007


NASSIT Strategic Plan 2005 -2007


The performance of departments and area offices have been gauged to the targets set in the Three Year Strategic Plan (2005 – 2007). The Trust’s annual plan and budget provides detailed action plan/targets, the time frame and financial resources required to accomplish the targets set for each department and area office. Each Division/Department shall develop a Business Plan consistent with their objectives. The Trust Management recognizes two categories of functions: The policy function done at the corporate headquarters and the operational functions done at Area offices. The sum of these functions is what guarantees the success or failure of the organisation. The measure of efficiency to be applied by the Trust is mainly directed to controlling performance of operational functions at the field offices mainly because that is where:o contact between the Trust and clients takes place; o resources of the Trust are collected; and o major statistical data are collected. As most operational functions of the Trust are quantifiable, performance in respect of these functions is evaluated in terms of raw data drawn from the various operating records. Table 4 provides the measurable targets expected to be achieved during the plan period. 6.2 The Management By Objectives (MBOs) and Behaviourally Anchored Rating Scale (BARS)

A new performance appraisal based on the Management by Objective (MBO) and Behaviourally Anchored rating Scale (BARS) approaches for senior categories of staff and BARS approach for junior levels shall be developed. The MBO system allows the manager and employee to set the objectives/goals with targets at the beginning of the appraisal period. These are monitored throughout the year with actual performance judged against established targets. This is appropriate for staff whose outputs are easily identifiable, measurable and quantifiable.


NASSIT Strategic Plan 2005 -2007

The BARS system dwells mostly on the behaviours, values and culture that Management would desire to have in the organisation. It relates to the input behaviour of individuals and allows the inclusion of descriptions of specific examples of actual job behaviours in the appraisal. The system is useful in assessing an individual’s contribution to the Trust, in relation to our core values, which emphasises high quality performance. The Divisional/Departmental Heads are responsible for ensuring the attainment of targets. The Strategic Planning Committee, with support form the Internal Audit, shall monitor progress on a quarterly basis and evaluate achievement of objectives.


NASSIT Strategic Plan 2005 -2007

Table 4:

Indicator Current Targets Level (2004) 2005 2006 2007

Increase participation Coverage o Formal1 – Coverage ratio(%) o Self-employed (Number)

43 16 90

45.5 100 30

50 500 20

60 1000 15

Issuance of Social Security Cards to new members

Number of days taken to issue cards after receipt of completed registration forms (SS1A) Design a Scheme for Informal sector by 2007 (% completion)

Promote Informal sector participation





Process benefits promptly Average claim handling time of benefits (days) o Old age o Invalidity o Survivors’ Outstanding benefits (% of total) o o o Process claims accurately Old age Invalidity Survivors’ n/a 100 n/a n/a 5 10 5 2 5 10 5 2 5 10 5 2

30 n/a 30

20 60 25

15 30 20

15 30 20

Rate of incorrectness of payments (%)

Increase Compliance Compliance rate o Government o Private Sector Successful Inspections (%) Government Private Sector Prompt Issuance of Members’ Statement No of Days taken to issue annual statements 65 80 50 n/a n/a n/a n/a 72.5 85 60 67.5 75 60 45 77.5 90 65 77.5 85 70 45 80 90 70 82.5 90 75 45


Formal sector employment estimated at 239,910 as at end December, 2004


NASSIT Strategic Plan 2005 -2007

Indicator AREA
INFORMATION SYSTEMS Implement LAN in all offices Implement WAN Implement a Biometric system Integrate all operational systems with NAPOS

Current Targets Level (2004) 2005 2006 2007
100 10 5 40 100 100 75 60 100 100 100 75 100 100 100 80

Percentage completion Percentage completion Percentage completion Percentage of integration

Periodic reviews of the economic, financial and demographic environment

Number of reviews Reporting time (End of period + X Days)

n/a 30

2 30

4 30

4 30


Guide, monitor and evaluate the implementation of the Strategic Plan

Number/freq. of reviews Reporting time (Benchmark: End of period + X Days)

n/a n/a

4 15

4 15

4 15

SOUND FINANCIAL MAMAGEMENT Reporting time (Benchmark: End of period + X Days) 45 30 20 15

Accurate, reliable and timely reporting on the Trust’s finances

Provide statutory consolidated statements and Annual Reports to Parliament

Reporting time ( End of period + x days)





Ensure strict budgetary discipline

Adverse variances from budget (%)






NASSIT Strategic Plan 2005 -2007

Indicator AREA

Current Targets Level (2004) 2005 2006 2007

Increase awareness of the Scheme

Awareness of the scheme (%) o Total Public o Insured Persons o Beneficiaries Satisfied with service delivery (%) o Total o Insured Persons o Beneficiaries

n/a n/a n/a n/a n/a n/a n/a n/a n/a

Good corporate image

Number of public complaints o Total o Insured Persons o Beneficiaries

OPTIMUM INVESTMENTS PERFORMANCE Achieve benchmark rate of return on investment Average rate of return (%) Short-term Inv Long-term Inv Real rate of return Monitor and report on investment performance Reporting time (end of period + X days) 19 5 7.64 30 16 4 -3 20 15 6 -2 15 12 9 1 15

Ensure optimum staff levels Staff strength Absenteeism rate Managers reporting noticeable/considerable improvement in performance due to training activities (%). Staff trained in customer service (%) Staff trained in core functions (%) Staff turnover ratio Stability index 162 1.2 220 1.2 235 1 250 1

Recruit, train and retain high quality staff

n/a NIL 25 2.5 91.6

50 100 90 2.0 95

75 100 95 2.0 95

90 100 100 1.0 97

Baseline data to be obtained from a Public Awareness and Perception Survey to be conducted in April 2005.



NASSIT Strategic Plan 2005 -2007


Risk Management Strategy

As part of the Trust’s commitment to provide good stewardship in the administration of the National Social Security Scheme, the Trust is committed to ensuring that a robust risk management process is in place to ensure appropriate controls. Against the background of our strategic directions and objectives, a framework is being developed to help the risk management process. The framework will outline: Key Risk areas in the Trust’s operations; The responsibility of different divisional heads in managing risks; The necessary actions to manage the inherent risks The risk management process is a continuous process that will: Identify the significant risks to our business Provide continuous updates in the framework; and Monitor progress risk-management

In implementing the Plan, we shall ensure that a risk management framework is in place and strictly adhered. This will allow us to include appropriate assurances in our annual financial statements and reports.


NASSIT Strategic Plan 2005 -2007



Contributions for 2005 are projected at Le 29 Billion, of which government, Le 15 Billion and private sector, Le 14 Billion. Investment income is projected at Le 8.6 Billion. Income from penalties and interest is Le 1.1Billion. For plan implementation, the Board has approved a budgetary provision of Le 31.1 Billion for expenditures in 2005. The proposed expenditures comprise: i. Benefits payment amounting to Le 9.63 Billion. Payments to current pensioners will amount to Le 6.23 Billion and Le 3.4 Billion in respect of benefits under the NASSIT Scheme; ii. Staff costs amount to Le 7.6 Billion, of which, wages and salaries are projected at Le 3.9. Billion. iii. Goods and Services for operations of the Trust, including the introduction of new corporate wear and customer service training to enhance the institution’s corporate image, amount to Le 2.94 Billion; and iv. Capital outlays to improve information management and the communication infrastructure amount to Le 14.5 Billion. These expenditures are proposed to purchase and implement a Wide Area Network, a Biometric Registration System and construction of the NASSIT Office Block.


NASSIT Strategic Plan 2005 -2007

Year 2004 Est. 2004 Budget 2005 (Le '000) Contributions Total Income Total Benefit Payments1 Ratio of Benefit Payments to Contributions (%) Annual Personnel Cost (Le 'Million) Ratio of Personnel Cost to Contributions (%) Total Administrative Expenses Ratio of Total Admin. Expenses to Contributions (%) Annual Investment Income Average Return on Investment (%) Real Return on Investment (%) Total Assets Ratio of Admin. Expenses to the Fund
1 NASSIT Scheme benefit payments only (Provisional Budget Figures)

2006 (Budget)


26,191,567.10 41,399,910.92 304,754.55 1.16 3,383,547.42 12.92 5,905,127.11 22.55 10,099,527.87 19.00 5.00 72,484,234.00 0.08

29,000,000.00 43,444,978.91 8,414,820.00 29.02 5,590,028.75 19.28 8,592,517.65 29.63 5,944,978.91 -

29,045,811.21 45,410,905.93 3,398,104.28 11.70 7,635,691.45 26.29 10,759,823.35 37.04 8,242,105.34 12.03 2.85 85,459,638.47 0.13

32,836,601.67 51,681,675.37 5,076,522.37 15.46 8,399,260.59 25.58 11,634,402.01 35.43 10,714,736.94 11.65 5.00 109,186,438.01 0.11

33,730,480.00 56,723,346.99 7,646,370.52 22.67 9,071,201.44 26.89 12,367,304.52 36.67 14,464,894.87 12.49 8.00 136,894,052.73 0.09

Total Administrative Expenses comprises: Personnel Costs Utilities Other expenses Finance related expenses Depreciation expense on fixed assets Total Income comprises: Contributions Validation inflows Financing of Government pensions in payment Investment income Govt. administrative charges for pension payments Other incomes Average return on investments is calculated as: Real return on investments is calculated as: Where: I = investment income A = Value of fund at beginning of period B = Value of fund at end of period i = rate of inflation

2I/(A+B -I)

{2I/(A+B)} - i


NASSIT Strategic Plan 2005 -2007


Board of Trustees

Director General

Deputy Dir. General (Membership, Finance, Technical)

Deputy Dir. General (Admin, HR &Public Affairs)

Technical Division

Operations Division

Finance Division

Public Affairs & Training Division

Legal Affairs Division & Secretariat

IT and Records

Research & Planning

Area Offices

Government Operations



Informal Sector Unit

Admin & Human Resources

Corp. Law Unit



Internal Audit


NASSIT Strategic Plan 2005 -2007


Director General Deputy Director General (Membership, Finance &Technical) Deputy Director General (Admin, HR & Public Affairs) Director of Finance Technical Director Director, Legal Affairs and the Secretariat Director, Public Affairs & Training Director of Operations Head, Internal Audit Head, Admin. & Human Resource Head, Accounts Department Head, I.T. and Records Head, Investments Department Head, Research and Planning Area Manager, West Area Manager, South Area Manager, North Area Manager, East Head, Benefits Head, Government Operations

1. Mr. Edmund Koroma 2. Mr. Gibril Saccoh 3. Mr Sahr J.B. Ngayenga 4. Mr Ibrahim Bah 5. Mr. S Gbawuru-Mansaray 6. Mr. Sengu M. Koroma 7. Ms. Georgiana Thompson 8. Mr. Mohamed Gondoe 9. Ms. Mahawah Silla 10. Mr. Joseph Mans Jr. 11. Mr. Davidson Peters-John 12. Mr. Amara Kargbo 13. Mr Mahmoud Idriss 14. Mr Andrew M. Allieu 15. Mr. Amadu F. Dainkeh 16. Mr Peter Kennah 17. Mr. Idriss Turay 18. Mr Sadique Fofanah 19. Mr Ahmed Bakarr Kamara 20. Mrs. Victoria Manasaray