The SVB was instituted as a legal entity by Act of August 29, 1960 (P.B. 1960 no. 154) and is entrusted with the implementation of the following insurances:
- General Old-Age Insurance Act – P.B. 1960 no. 83;
- General Widows’ and Orphans’ Insurance Act – P.B. 1965 no. 194;
- Accidents Insurance Act – P.B. 1966 no. 14
- Sickness Insurance Act – P.B. 1966 no. 15;
- Severance Act – P.B. 1983 no. 85. In the above-mentioned Acts, it is regulated who are insured, against what risks said insurances provide cover and at what premium. These Acts also regulate to what pension amounts an insurant is entitled.
Unlike in the case of insurances governed by private law, in which parties have a large degree of freedom of contract, the entirety of rights and obligations for the insurant and for the implementing body in the case of social insurances that are public in nature is imperatively prescribed in the Act in question.
The Severance Fund is a separate legal entity, for which a separate annual statement of accounts is drawn up.
The ministerial responsibility for the SVB lies with the Minister of Social Development, Labor and Welfare.
Supervisory and Advisory Board
Supervising the Management of the SVB and giving advice in matters concerning the SVB have been entrusted to the Supervisory and Advisory Board. The Board is appointed by the Governor for a three-year period. The Board is formed by one representative from employees’ organizations, one from employers’ organizations, four from social organizations, other than employees’ and employers’ organizations, and one chairman.
The management of the SVB has been assigned to a Director (Philip Martis) who is responsible and accountable to the Minister of Social Development, Labor and Welfare.