Republic of Djibouti - Pension System Reform : Strategic Note
The Government of Djibouti has committed to reform its pension system in order to restore financial sustainability and improve management. To this end, it requested the World Bank to elaborate a pension reform strategy that identifies the major fin...
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| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2001/12/1653710/djibouti-pension-system-reform-strategic-note http://hdl.handle.net/10986/15462 |
| Summary: | The Government of Djibouti has committed
to reform its pension system in order to restore financial
sustainability and improve management. To this end, it
requested the World Bank to elaborate a pension reform
strategy that identifies the major financial and
institutional constraints facing the pension funds and
explores restructuring options. This policy note summarizes
the major diagnosis and policy recommendations of the study,
reflecting comments from government officials and the
Bank's technical experts during the internal review
meeting held on March 15, 2001. In the case of Djibouti, a
two-stage reform program is proposed. A first stage would
concentrate on consolidating a modest pay-as-you-go system,
and involve executing three major activities: 1)
implementing institutional reforms to improve governance and
management, and to generate efficiency gains that enhance
service delivery and reduce administrative costs; 2)
addressing short-term financial needs by normalizing
government contributions, defining a plan to refinance
government arrears, and introducing a ceiling for the
replacement rate in the regime for parliamentarians; and 3)
improving the medium-term financial situation of the pension
funds. A second stage of the reform program would focus on
merging the Social Protection Organism (OPS) and the
National Pensions Fund (CNR); and introducing/reinforcing
incentives to promote contractual savings. |
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