Theory and practice in the design of pension systems: The case of Israel

Examines the options for a pension system in Israel in comparison with other pension systems in developed countries. A basic actuarial model is calculated for the evaluation of the feasible funded pensions. For reasonably conservative rates of return and contribution rates a funded system can be maintained. Employs the conceptual framework to analyse proposals for the reform of the pension system. Suggests that a funded pension is preferable.