The financial situation of the national retirement fund during the 2014’s economic crisis in Algeria

Abstract

This study aims to analyze the financial situation which the retirement fund confronting it during the economic crisis that Algeria opposing it since 2014. By treating this problematic: to what extent incomes of the national retirement fund in Algeria covering its expenses, during the 2014’s economic crisis in order to preserve its financial balance and sustainability? To answer this problematic we rely on the functional constructive approach, considering that the retirement fund is the structure that managing the retirement system by doing the functions entrusted to it, so we study the adequacy of its revenues to cover its outgoings, especially towards retirees, and to maintain its financial balance and sustainability during this crisis. As a result, the fragility of the national economy lead up to the fragility of the retirement fund’s financial base, which made it vulnerable to financial difficulties during this economic crisis. Therefore, the stability of the retirement fund’s financial situation depends on the stability of the national economy, which requires the establishment of a strong and productive economy, as an alternative to the rentier economy, to create a solid financial base for the national retirement fund.