Generosity of Jordanian Pension System: Equity vs. Adequacy Measures

Dr. Abdul Nafea Al Zararee Dr. Hazim T.S Rahahleh

As other retirement insurance provisions around the globe, the Jordanian social security corporation (JSSC) has been established to provide its participant with acceptable degrees of certainty regarding their future income after retirement. Without such a provision, workers are most likely to underestimate and disregard the funds needed to finance their needs during geezer hood. The demographic gift should not be seen as a hidden umbrella for poorly designed public defined benefit scheme. Generosity shall be carefully removed and efficiency has to be embedded. An approach that motivates savings for the future and prevents gaming, gaming, and going parallel with the enhancement of social solidarity is a must forany reform. Otherwise, at the end of the day, with continuing fall in mortality and fertility all things would come at the expense of future generations.