Publication: West Bank and Gaza Public Expenditure Review - The Palestinian Pension System: A Roadmap for an Unfinished Reform
Date
2023-09-18
ISSN
Published
2023-09-18
Author(s)
World Bank
Abstract
This work builds on the Public
Expenditure Review (PER) analysis of the pension system
conducted in 2016 but also brings important innovations. It
updates the financial analysis conducted then and offers new
policy recommendations, with the key objective of improving
the affordability of the pension system, subject to benefit
adequacy. The principal difference of this work is in the
adopted approach, which looks at the pension system
holistically and offers advice from the angle of
rationalizing the overall public expenditure policy in
pensions, rather than working with each pension scheme
individually. In doing so, it takes a forward-looking
approach and minimizes the dependency path of the convoluted
legacy system. The work also incorporates a component that
looks at the Palestinian Pension Agency’s (PPA)
administrative systems using a new Bank tool – Social
Insurance Administrative Diagnostic (SIAD). The findings
reveal a system with unfinished reforms and call for a
comprehensive restructuring of the pension financing
arrangements, along with a change of the construct of the
system. This work is largely diagnostic in nature, offering
high level policy recommendations and suggesting a
comprehensive follow up analysis. While presenting a status
quo analysis and illustrating effects of several parametric
adjustments, the main set of recommendations is centered
around the structural adjustments and financial
restructuring in the public sector pension scheme, which
would require a round of follow up work, elaborating and
modeling various reform cases, including careful fine-tuning
of the transitional provisions.
Link to Data Set
Citation
“World Bank. 2023. West Bank and Gaza Public Expenditure Review - The Palestinian Pension System: A Roadmap for an Unfinished Reform. © Washington, DC: World Bank. http://hdl.handle.net/10986/40360 License: CC BY-NC 3.0 IGO.”