Mongolia : Pension Policy Challenges and Reform Options

Mongolia inherited a pay-as-you go public pension system providing universal coverage and high levels of benefits (relative to pre-retirement income), consistent with the state provision of all forms of social insurance. The system was reformed in 1995, including the introduction of contributions for pensions and other social insurance, but it remained dependent upon Government transfers. The reforms improved the existing scheme but failed to achieve financial sustainability or address a number of weaknesses in the existing scheme's design, which created weak incentives for contributing to the system and benefit inequities between different groups of workers/cohorts. This policy note responds to this request, and it is part of an ongoing broader collaboration with the Government and the Asian Development Bank (ADB) on pension reform that includes: (i) supporting the development of the policy framework for pension reform; (ii) improving the pension policy making capacity; and (iii) assisting in the identification of the institutional development needs to support the new pension system. This note identifies a number of challenges in the design and implementation of the current social insurance system that would need to be addressed to strengthen the system's ability to provide consumption smoothing and old-age income security for Mongolia's population.

Bibliographic Details

Main Author:	World Bank
Format:	Policy Note biblioteca
Language:	English en_US
Published:	Washington, DC 2008-04-21
Subjects:	ACCOUNTABILITY, ACCOUNTING, ACCRUAL RATE, ACCRUAL RATES, ACCRUALS, ADB, ADMINISTRATIVE COSTS, ALIMONY, BANKRUPTCY, BENEFICIARY, BENEFIT ADJUSTMENTS, BENEFIT FORMULA, BENEFIT INDEXATION, BENEFIT LEVEL, BENEFIT LEVELS, BINDING CONSTRAINT, BREADWINNER, CAPITAL MARKETS, CASH TRANSFERS, COMPENSATION, CONSUMER PRICE INDEX, CONSUMPTION SMOOTHING, CONTRACTUAL SAVINGS, CONTRIBUTION DATA, CONTRIBUTION RATE, CONTRIBUTION RATES, COST OF LIVING, COST REDUCTION, CREDIBILITY, DEFICITS, DEFINED BENEFIT, DEFINED BENEFIT SCHEME, DEFINED-BENEFIT SCHEME, DEFINED-BENEFIT SCHEMES, DEMOGRAPHIC, DEPENDENCY RATIO, DEPENDENCY RATIOS, DEVELOPMENT BANK, DISABILITY, DISABILITY PENSION, DISABILITY PENSIONS, DISBURSEMENT, DISBURSEMENTS, DISPUTE RESOLUTION, ECONOMIC LIBERALIZATION, ECONOMIC VOLATILITY, ELDERLY, EMPLOYEE, EMPLOYMENT, ENABLING ENVIRONMENT, EQUIPMENT, EXPENDITURE, FEMALE, FEMALES, FERTILITY, FERTILITY RATES, FINANCES, FINANCIAL MANAGEMENT, FINANCIAL SUSTAINABILITY, FISCAL BURDEN, FORMAL PENSION, FUNDED ACCOUNTS, GENDER, GENDER DIFFERENCES, GOVERNMENT BUDGET, GOVERNMENT EXPENDITURES, GOVERNMENT REVENUES, GOVERNMENT SUBSIDY, GROSS WAGE, HOLDINGS, HOME, HOUSEHOLD INCOME, HOUSING, HUMAN DEVELOPMENT, INCOME GROUPS, INCOME GROWTH, INCOME SECURITY, INCOME TAX, INCOME TAXES, INCOMES, INDIVIDUAL ACCOUNT, INFLATION, INFLATION RATE, INFORMAL SECTOR, INFORMATION DISCLOSURE, INFORMATION SYSTEMS, INSTITUTIONAL CAPACITY, INSTITUTIONAL DEVELOPMENT, INSTRUMENT, INSURANCE PENSIONS, INSURANCE POLICY, INSURANCE REFORMS, INTEREST RATE, INVESTMENT CLIMATE, INVESTMENT MANAGEMENT, INVESTMENT MANAGERS, INVESTMENT POLICY, INVESTMENT STRATEGY, JOB CREATION, LABOR FORCE, LABOR MARKET, LEGAL FRAMEWORK, LEGAL PROVISIONS, LEGISLATION, LIFE EXPECTANCY, LIVING STANDARD, LONGEVITY RISKS, MANAGEMENT REVIEW, MANDATORY SCHEME, MARKET TRENDS, MINIMUM BENEFIT, MORTALITY, NATIONAL DEVELOPMENT, NOMINAL WAGE, NORMAL RETIREMENT AGE, NOTIONAL ACCOUNT, NOTIONAL ACCOUNTS, OLD-AGE INCOME, OLD-AGE PENSION, OLD-AGE PENSIONS, OPERATING COSTS, PENSION, PENSION AGE, PENSION AT RETIREMENT, PENSION BENEFICIARIES, PENSION BENEFIT, PENSION BENEFITS, PENSION CONTRIBUTIONS, PENSION EXPENDITURES, PENSION INCOME, PENSION INSURANCE, PENSION LIABILITY, PENSION POLICY, PENSION PROVISION, PENSION PROVISIONS, PENSION REFORM, PENSION SAVINGS, PENSION SCHEME, PENSION SCHEMES, PENSION SYSTEM, PENSION SYSTEMS, PENSIONERS, PENSIONS, PERSONAL INCOME, PERSONAL INCOME TAXES, PRESENT VALUE, PRICE INDEXATION, PRIVATE PENSION, PRODUCTIVITY, PUBLIC ENTERPRISES, PUBLIC EXPENDITURES, PUBLIC PENSION, PUBLIC PENSIONS, RATE OF GROWTH, RATE OF RETURN, RATES OF RETURN, REFORM PROGRAM, REPLACEMENT RATE, REPLACEMENT RATES, RESERVE, RESERVE FUND, RESERVES, RETIREE, RETIREES, RETIREMENT, RETIREMENT AGE, RETIREMENT AGES, RETIREMENT BENEFIT, RETIREMENT BENEFITS, RETIREMENT INCOME, RETIREMENT PENSION, RETURNS, REVENUE SOURCES, SECURITIES, SOCIAL ASSISTANCE, SOCIAL INSURANCE, SOCIAL INSURANCE BENEFIT, SOCIAL INSURANCE BENEFITS, SOCIAL INSURANCE CONTRIBUTION, SOCIAL INSURANCE CONTRIBUTIONS, SOCIAL INSURANCE FUND, SOCIAL INSURANCE SYSTEM, SOCIAL PENSION, SOCIAL PENSIONS, SOCIAL PROTECTION, SOCIAL SECURITY, SOCIAL SECURITY BENEFITS, SOCIAL SECURITY SYSTEM, SOCIAL SECURITY SYSTEMS, SOCIAL WELFARE, TAX, TAX ADVANTAGE, TAX TREATMENT, TAXATION, TECHNICAL ASSISTANCE, TREASURY, TREASURY SECURITIES, UNFUNDED PENSION, VALUATION, VOLUNTARY PENSION, VOLUNTARY PENSIONS, WAGE GROWTH, WAGES, WIDOW, WIDOWER, WILL, WITHDRAWAL, WOMAN,
Online Access:	http://documents.worldbank.org/curated/en/2008/04/16465286/mongolia-pension-policy-challenges-reform-options http://hdl.handle.net/10986/12677
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