Civil service pension reform in developing countries
Experiences and lessons
This study examines reforms to civil service pension arrangements in a number of developing
countries across Africa, Asia and Latin America. These arrangements are a significant
component of public-sector remuneration in many developing countries and they can
carry substantial risks, not only financial but also political and social. This study
takes a long-term and systemic approach to civil service pensions, charting their
evolution as part of a country’s social protection provision and with reference to
public-sector remuneration as well as broader institutional developments. It demonstrates
the short- and long-term costs of these arrangements against spending on other social
protection interventions, notably poverty-targeted social assistance. Through a series
of case studies, it examines the motivation behind countries’ decision to reform their
civil service schemes, as well as the challenges they faced when undertaking these
reforms and their overall impact. The study is intended to support countries planning
to reform their civil service pension schemes by identifying key principles and specific
policies they might consider in this process; it can also support governments not
planning such reforms to better understand the financial dynamics of their civil service
schemes.
Published on November 27, 2020
In series:OECD Development Policy Papersview more titles