Reducing fund liability of the Veterans Pension System in Cambodia
CAMBODIA - The National Fund for Veterans (NFV) was created in 2010 to manage the administration of social security benefits of the armed forces and national police in Cambodia. It was established to centralize the administration and disbursement of benefits for veterans in order to increase efficiency, improve service standards, and strengthen the overall governance of the system. The scheme was originally designed to be contributory but to this day remains to be fully financed by the government. Over the years, the total pension expenditure of NFV continues to rise even breaching the US$80 million mark in 2016. This huge government spending, which accounts for 8.3% of the total government expenditure, only ensures the coverage of 1.4% of the total population. While such spending is laudable, the budget only provides…