Pensions in Palestine : Reform in a Context of Unrest, Voume 2. Technical Annex

World Bank

Washington, DC

关键词: ACCOUNTING;    ACCRUAL RATES;    ANNUITY;    ASSET MANAGEMENT;    ASSETS;   

RP-ID  :  25046

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

At the request of the PalestinianAuthority (PA), the status of pension schemes in the WestBank and Gaza was reviewed, and a technical analysis of thetwo civil service schemes was undertaken. A TechnicalAppendix reports in detail on projections of the financialstatus of the civil service schemes as well as onimprovement options. This paper summarizes the main findingsand highlights the policy implications. Its primary focus ison solutions that could be implemented in the short-term.The civil service pension schemes are bankrupt and in needof reform. The major issues facing them are: financialnon-sustainability; government arrears in contributions;corporate governance issues resulting in rapid depreciationof the pension fund; the lack of financial disclosure;government overstaffing; and the lack of coverage for theprivate sector. This report recommends as critical nextsteps in the short term that there must be immediate andsignificant parametric reforms designed to restore financialsolvency and enhance equity, such as reducing the retirementage and cutting benefit accrual rates. Governance, that is,increasing the transparency and efficiency of the GazaPensions and insurance Corporation (GPIC), the largestnon-bank financial institution in the West Bank and Gaza,has been suggested. Right-sizing government employment isalso important. In the long-term, systemic reforms will beneeded to solidify pensions for government workers.Comprehensive protection for all elderly persons, one of themost vulnerable groups, is desperately needed within thecontext of the current crisis. A universal flat benefitscheme is the only short-term option that can providebroad-based assistance. Another short-term key concept isthe recovery of pension transfers owed to Palestinianworkers from Israel; the value could be significant andcould avert poverty for many soon-to-retire Palestinianswith extensive work histories in Israel. The sequencing andinitiation of pension reform is a lengthy process, involvingthe reconciliation of conflicting priorities among differentstakeholders. Within the context of the West Bank and Gaza,it may be best to think of the reform process in threesteps: commitment building, coalition building, and implementation.