Reform of the distribution-based retirement system case study (retirement system in Algeria and France)

Abstract

The study aims to address the retirement system based on intergenerational solidarity distribution and collect the largest number of contributions to fund it.                                                         

 Algeria and France are among the countries in the world that adopt distributional financing for their retirement systems and that have recently experienced fiscal deficits in both countries and are expected to worsen it in future generations due to the decline in contributions, as well as the phenomenon of the ageing of society and the rise in the life expectancy of retirees.this has required a review of its financing system, which has prompted both countries to introduce reforms to their retirement systems. However, these reforms remain only circumstantial, so radical solutions must be sought in the medium and long term.

The importance of the study is that it is current for both countries, which made us pose the following problem: on what basis does the distribution system work? What reforms have Algeria and France made to coexist with this system?

Among the findings is that the situation of the pension system in Algeria and France is experiencing crises that hinder its sustainability and lead to its inability to meet its commitments despite the reforms undertaken by the two countries.