Fundamental Transformation of the Civil Service Pension Fund: Development, Structural Reform, and Resolution of Existing Challenges

Abstract

This study aims to analyze the structural dimensions of the crisis within the Civil Service Pension Fund and to propose an integrated institutional, financial, and governance reform framework to ensure intergenerational sustainability and reduce fiscal dependency. A qualitative systematic review approach was employed. Twelve key academic and policy sources related to pension reform, asset governance, prudential supervision, and financial sustainability were selected and analyzed using directed content analysis. Data were extracted through a structured conceptual checklist and examined through open, axial, and selective coding to reconstruct the core dimensions of the crisis and develop a comprehensive reform model. Analytical results indicate that the Fund’s crisis is multidimensional, driven by the interaction of five core factors: legal fragmentation and lack of independent supervision, severe financial imbalance and declining support ratios, inefficient asset governance, demographic pressures, and political-social constraints. The findings suggest that parametric adjustments alone are insufficient and that without structural redesign and professionalized investment management, financial sustainability cannot be achieved. Continuation of the current trajectory increases systemic risk to public finance and capital markets. Fundamental transformation of the Civil Service Pension Fund requires an integrated strategy combining independent regulatory oversight, gradual parametric reform, transition away from direct enterprise management, enhanced financial transparency, and digital modernization to reposition the Fund from a chronic fiscal liability into a sustainable national asset.