Vanuatu

Old-Age, Disability, Death

First and current law: 1986 (implemented August 1, 1987).
Type of program: Provident fund system (lump-sum benefits only).
Exchange rate: U.S.$1.00 equals 130 vatu.

Coverage

Employees over age 14 in regular employment, with the following exceptions:

  1. Persons covered under employer-provided retirement programs if approved by the Board of the Provident Fund; and
  2. Employees earning less than 3,000 vatu a month. Also exempt are temporary workers in agriculture and forestry.
Ministers and members of religious organizations may pay into the program on a voluntary basis.

Source of Funds

Insured person: 3% of earnings.
Employer: 3% of payroll.
Government: None.

Qualifying Conditions

Old-age benefit: Age 55; or permanent departure from the country.
Disability benefit: Permanently incapable of employment of any kind due to physical or mental impairment.
Survivor benefit: Death of insured worker prior to retirement.

Old-Age Benefits

Old-age benefit: Lump sum equal to total employee and employer contributions, plus at least 4% compound interest.

Permanent Disability Benefits

Disability benefit: Lump sum equal to total employee and employer contributions, plus at least 4% compound interest.

Survivor Benefits

Survivor benefit: Lump sum equal to total employee and employer contributions, plus at least 4% compound interest. Also, special death benefit in addition to above.

Administrative Organization

Ministry of Finance, general supervision.
Ministry of Finance and the Reserve Bank of Vanuatu, investment guidelines.
Provident Fund Board, administration of program.