Casablanca – Morocco’s National Social Security Fund (CNSS) is facing serious financial difficulties, with its total debt reaching $8.5 billion by the end of 2023. This is a big jump from $4.9 billion in 2013, marking a 73.5% increase. The growing debt has raised concerns about the fund’s ability to remain financially stable and continue supporting workers and retirees.

Unpaid debt and collection challenges

During a recent meeting, Economy and Finance Minister Nadia Fettah explained the worrying state of CNSS finances. A significant part of the debt—33% ($2.8 billion)—has not been paid for over 15 years, while 40% ($3.4 billion) is less than five years old. This shows that collecting contributions has been a long-term issue.

One major problem is the heavy penalties charged on unpaid contributions. Of the total debt, 55% ($4.7 billion) comes from penalties, while the actual contributions make up only 41% ($3.5 billion). Fines account for the remaining 4% ($340 million). These high penalties make it even harder for businesses to pay back what they owe.

Government reforms to improve debt recovery

To tackle this issue, the government has introduced Bill No. 02.24, which aims to reform CNSS’s management, improve debt collection, and strengthen financial oversight.

Key changes include:

  • Giving CNSS officials the same authority as public accountants to speed up debt recovery.
  • Reducing legal costs by simplifying court procedures.
  • Allowing CNSS to write off debts that are impossible to collect after all legal options have been used.
  • Lowering late payment penalties from 1% per month to 0.5% after the first month to ease the financial burden on businesses.

Expanding CNSS’s role in social protection

The reforms also aim to expand CNSS’s role in managing additional social protection programs, as long as they meet financial sustainability requirements. To improve transparency, CNSS’s operational budget will be separated from the budget of the social security schemes it manages.

Changes to pension eligibility rules

A major reform is the reduction of the minimum contribution period required for pension eligibility. The new rule lowers the requirement from 3,240 days to 1,320 days. This means:

  • Workers with at least 1,320 days of contributions can now qualify for a retirement pension if they retired on or after January 1, 2023.
  • Those with fewer than 1,320 days can request a refund of their contributions.
  • Retirees and their beneficiaries who qualify under the new rules may receive retroactive pension payments.

Looking Ahead

The CNSS debt crisis highlights the urgent need for reform to ensure Morocco’s social security system remains sustainable. The proposed changes focus on improving governance, enhancing debt collection, and expanding social protection. However, their success will depend on how well they are implemented. Policymakers must carefully balance financial stability with the need to provide essential support to workers and retirees.