Social Security Programs Throughout the World: Asia and the Pacific, 2002

 

Brunei

Exchange rate: U.S.$1.00 equals 1.78 Brunei dollars (B$).

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1955.

Current law: 1992 (employees' trust fund).

Type of program: Dual provident fund and universal old-age pension system.

Coverage

Provident fund: Citizens and permanent residents employed under a service contract.

Exclusions: Security personnel, foreign workers, and employees older than age 55.

Universal old-age pension: Residents.

Prior to 1993, a special system for pensionable government employees.

Source of Funds

Insured person

Provident fund: 5% of monthly salary if the monthly salary exceeds B$80.

Universal old-age pension: None.

Employer

Provident fund: 5% of monthly payroll.

Universal old-age pension: None.

Government

Provident fund: None.

Universal old-age pension: Total cost.

Qualifying Conditions

Old-age benefit

Provident fund: Age 55.

Early withdrawal: Age 50.

Drawdown payment: Fund members can draw down funds from their individual account for building or purchasing a house.

Universal old-age pension: 30 years of residence.

Disability benefit (provident fund): The fund member must be certified by a recognized physician as being physically or mentally incapacitated for employment.

Survivor benefit (provident fund): Paid to the next of kin.

Old-Age Benefits

Provident fund: A lump sum equal to the total employee and employer contributions, plus compound interest.

Early withdrawal: Insured persons may draw down 25% of accumulated assets.

Drawdown payment: The fund member may draw down up to 45% of accumulated assets in the individual account before age 50 for building or purchasing a house.

The full withdrawal of accumulated assets in the individual account is allowed if emigrating permanently.

Interest rate adjustment: Set by the government annually.

Universal old-age pension: A flat-rate amount.

Permanent Disability Benefits

Disability benefit (provident fund): A lump sum equal to total employee and employer contributions plus compound interest.

Interest rate adjustment: Set by the government annually.

Survivor Benefits

Survivor benefit (provident fund): A lump sum equal to total employee and employer contributions plus compound interest.

Interest rate adjustment: Set by the government annually.

Administrative Organization

Employees' Trust Fund Board supervises the program.

Ministry of Finance is responsible for administration and financial matters.

Social Welfare Unit of the Ministry of Culture, Youth, and Sports administers welfare assistance benefits.

Sickness and Maternity

Regulatory Framework

The government provides health care free of charge.