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...
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| Format: | Policy Note |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2008/04/16465286/mongolia-pension-policy-challenges-reform-options http://hdl.handle.net/10986/12677 |
| Summary: | 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. |
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