Assessment Based National Dialogue

SPF Good Practices Guide

Module 10

Objectives

The recommendations identified in the assessment matrix have to be converted into specific policy options - known as scenarios - so that the cost of implementing each option can be estimated and stakeholders can subsequently decide whether to move ahead with the implementation. The objective of this module is to design practical scenarios.

Key questions

How do we select recommendations that can be translated into scenarios?
How do we design scenarios?
What are low and high scenarios?
What assumptions can be made and when do we need to make them?

Takeaway message

Some recommendations are related to the expansion of the SPF and are quantitative in nature, such as introducing new benefits, increasing benefit levels, and expanding coverage. These are converted into scenarios for the cost estimation using the RAP model. A recommendation may be converted into more than one scenario in order to help policy-makers choose among different options. Low and high scenarios define the minimum and maximum level of benefits which can be extended. The process of designing scenarios and making assumptions is done through consultations with technical specialists and actuaries and by making reasonable and logical assumptions.