Private Sector Pensions
Despite reform of the Palestinian public sector pension system there remains limited access to pension funds for the Palestinian private sector. The establishment of private sector pension funds would inject long-term capital into the market, stimulate economic growth and help secure the financial future of retirees.
In 2006, The Portland Trust commissioned Levant Consulting to review the status of existing private sector pension and provident fund schemes, to analyse international experience, and to recommend appropriate structures for a Palestinian system. Following the publication of the study in August 2007, The Portland Trust worked with public and private stakeholders to formulate implementing legislation to allow for the establishment of a new private pension system in the Palestinian Territory. The draft legislation was submitted to the Palestinian Prime Minister in November 2008 but was subsequently delayed in the legislative process. In an effort to reinvigorate the proposal a number of workshops and discussions were held in 2010 by different stakeholders in the private sector.
In December 2010, key high profile private sector figures led by the Bank of Palestine came together and expressed their interest in the development of a private sector pension system.
In March 2011 The Portland Trust contracted an international consultant to review the draft legislation. The consultant is working alongside a local team of pensions' experts to finalise the draft before it is submitted to the Palestinian Council of Ministers for final approval.
Alongside these efforts, The Portland Trust is promoting the World Bank's development of accompanying Capital Market Authority regulation and the establishment of a pilot pension company.
To view the study, click here.
