World Bank2013-03-122013-03-122008-04-21https://hdl.handle.net/10986/12677Mongolia 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.en-USCC BY 3.0 IGOACCOUNTABILITYACCOUNTINGACCRUAL RATEACCRUAL RATESACCRUALSADBADMINISTRATIVE COSTSALIMONYBANKRUPTCYBENEFICIARYBENEFIT ADJUSTMENTSBENEFIT FORMULABENEFIT INDEXATIONBENEFIT LEVELBENEFIT LEVELSBINDING CONSTRAINTBREADWINNERCAPITAL MARKETSCASH TRANSFERSCOMPENSATIONCONSUMER PRICE INDEXCONSUMPTION SMOOTHINGCONTRACTUAL SAVINGSCONTRIBUTION DATACONTRIBUTION RATECONTRIBUTION RATESCOST OF LIVINGCOST REDUCTIONCREDIBILITYDEFICITSDEFINED BENEFITDEFINED BENEFIT SCHEMEDEFINED-BENEFIT SCHEMEDEFINED-BENEFIT SCHEMESDEMOGRAPHICDEPENDENCY RATIODEPENDENCY RATIOSDEVELOPMENT BANKDISABILITYDISABILITY PENSIONDISABILITY PENSIONSDISBURSEMENTDISBURSEMENTSDISPUTE RESOLUTIONECONOMIC LIBERALIZATIONECONOMIC VOLATILITYELDERLYEMPLOYEEEMPLOYMENTENABLING ENVIRONMENTEQUIPMENTEXPENDITUREFEMALEFEMALESFERTILITYFERTILITY RATESFINANCESFINANCIAL MANAGEMENTFINANCIAL SUSTAINABILITYFISCAL BURDENFORMAL PENSIONFUNDED ACCOUNTSGENDERGENDER DIFFERENCESGOVERNMENT BUDGETGOVERNMENT EXPENDITURESGOVERNMENT REVENUESGOVERNMENT SUBSIDYGROSS WAGEHOLDINGSHOMEHOUSEHOLD INCOMEHOUSINGHUMAN DEVELOPMENTINCOME GROUPSINCOME GROWTHINCOME SECURITYINCOME TAXINCOME TAXESINCOMESINDIVIDUAL ACCOUNTINFLATIONINFLATION RATEINFORMAL SECTORINFORMATION DISCLOSUREINFORMATION SYSTEMSINSTITUTIONAL CAPACITYINSTITUTIONAL DEVELOPMENTINSTRUMENTINSURANCE PENSIONSINSURANCE POLICYINSURANCE REFORMSINTEREST RATEINVESTMENT CLIMATEINVESTMENT MANAGEMENTINVESTMENT MANAGERSINVESTMENT POLICYINVESTMENT STRATEGYJOB CREATIONLABOR FORCELABOR MARKETLEGAL FRAMEWORKLEGAL PROVISIONSLEGISLATIONLIFE EXPECTANCYLIVING STANDARDLONGEVITY RISKSMANAGEMENT REVIEWMANDATORY SCHEMEMARKET TRENDSMINIMUM BENEFITMORTALITYNATIONAL DEVELOPMENTNOMINAL WAGENORMAL RETIREMENT AGENOTIONAL ACCOUNTNOTIONAL ACCOUNTSOLD-AGE INCOMEOLD-AGE PENSIONOLD-AGE PENSIONSOPERATING COSTSPENSIONPENSION AGEPENSION AT RETIREMENTPENSION BENEFICIARIESPENSION BENEFITPENSION BENEFITSPENSION CONTRIBUTIONSPENSION EXPENDITURESPENSION INCOMEPENSION INSURANCEPENSION LIABILITYPENSION POLICYPENSION PROVISIONPENSION PROVISIONSPENSION REFORMPENSION SAVINGSPENSION SCHEMEPENSION SCHEMESPENSION SYSTEMPENSION SYSTEMSPENSIONERSPENSIONSPERSONAL INCOMEPERSONAL INCOME TAXESPRESENT VALUEPRICE INDEXATIONPRIVATE PENSIONPRODUCTIVITYPUBLIC ENTERPRISESPUBLIC EXPENDITURESPUBLIC PENSIONPUBLIC PENSIONSRATE OF GROWTHRATE OF RETURNRATES OF RETURNREFORM PROGRAMREPLACEMENT RATEREPLACEMENT RATESRESERVERESERVE FUNDRESERVESRETIREERETIREESRETIREMENTRETIREMENT AGERETIREMENT AGESRETIREMENT BENEFITRETIREMENT BENEFITSRETIREMENT INCOMERETIREMENT PENSIONRETURNSREVENUE SOURCESSECURITIESSOCIAL ASSISTANCESOCIAL INSURANCESOCIAL INSURANCE BENEFITSOCIAL INSURANCE BENEFITSSOCIAL INSURANCE CONTRIBUTIONSOCIAL INSURANCE CONTRIBUTIONSSOCIAL INSURANCE FUNDSOCIAL INSURANCE SYSTEMSOCIAL PENSIONSOCIAL PENSIONSSOCIAL PROTECTIONSOCIAL SECURITYSOCIAL SECURITY BENEFITSSOCIAL SECURITY SYSTEMSOCIAL SECURITY SYSTEMSSOCIAL WELFARETAXTAX ADVANTAGETAX TREATMENTTAXATIONTECHNICAL ASSISTANCETREASURYTREASURY SECURITIESUNFUNDED PENSIONVALUATIONVOLUNTARY PENSIONVOLUNTARY PENSIONSWAGE GROWTHWAGESWIDOWWIDOWERWILLWITHDRAWALWOMANWorld Bank10.1596/12677