Pension reform in Israel under mandatory pension law

Abstract

This study proposes pension reform in Israel under legislation of a mandatory pension law covering all workers by funded pension plans. Referring to a mandatory pension coverage law rather than a national pension implies that pensions are paid by private entities and are not part of the government system. The rate of ageing of Israel's population is slower than most of the Western world, and this opens a demographic window of opportunity to savings for funded pensions. The proposed reform aims to promote greater social equality as well as transparency. New data and actuarial calculations are presented, as well as estimates of the budgetary expenses, to substantiate the claim that such legislation is needed. © 2009 Palgrave Macmillan 1478-5315.