World Bank2014-08-192014-08-192011-01-20https://hdl.handle.net/10986/19460This report was prepared in response to a request by the Mongolian authorities for an evaluation of the Mongolian pension system and policy reform options. The report identifies a number of design weaknesses in the current pension insurance scheme and needs for reform in response to changes in the Mongolian economy. The summary of this report provides a brief synopsis for key policymakers of the rationale for reform and policy options considered. The main text responds to requests by the Mongolian authorities for the Bank's assessment. It considers the design architecture and parameters of the pension insurance scheme, the design of non- contributory elderly social assistance, pension provisions for herders and the rationale and design options for a pension reserve fund. The appendices provide more detailed analysis for technical staff including current pension insurance parameters; needs and policy options for herders and other informal sector workers; options for establishing a pension reserve fund; and elaboration of the actuarial modeling methodology employed, key assumptions and parameters, and detailed findings. Mongolia's economy, labor market and fiscal position are undergoing rapid changes as a result of growth in the mining sector. These changes present both challenges and opportunities for reform in pension provisions.en-USCC BY 3.0 IGOACCRUAL RATEACTUARIAL MODELINGAGING POPULATIONANNUITYANNUITY FACTORANNUITY FACTORSASSET MANAGERSAVERAGE BENEFITAVERAGE WAGE GROWTHBANKRUPTCYBENEFIT ADJUSTMENTSBENEFIT FORMULABENEFIT FORMULASBENEFIT INDEXATIONBENEFIT LEVELBENEFIT LEVELSCAPITAL MARKETSCASH TRANSFERSCOMMODITYCOMMODITY PRICECOMPENSATIONCONSUMER PRICE INDEXCONSUMER PRICE INFLATIONCONTRIBUTION RATECONTRIBUTION RATESCREDIBILITYCREDIT GROWTHDEBTDEFICITSDEFINED BENEFITDEFINED BENEFIT SCHEMEDEFINED CONTRIBUTION PENSIONDEFINED CONTRIBUTIONSDEFINED-BENEFIT SCHEMEDEMOGRAPHICDEPENDENCY RATIODEPENDENCY RATIOSDEVELOPMENT BANKDISABILITYDISABILITY PENSIONDISABILITY PENSIONSDISBURSEMENTSDOMESTIC FINANCIAL MARKETSECONOMIC CRISESECONOMIC DEVELOPMENTECONOMIC EFFICIENCYECONOMIC VOLATILITYELDERLYEMPLOYEEEXPENDITUREEXPENDITURESEXPOSUREFEMALEFEMALESFERTILITYFERTILITY RATESFINANCESFINANCIAL INTERMEDIARYFINANCIAL MARKETSFINANCIAL RISKSFISCAL BURDENFUNDED ACCOUNTSFUTURE OBLIGATIONSFUTURE PENSIONGENDERGOVERNMENT SUBSIDYGROSS DOMESTIC PRODUCTGUARANTEED BENEFITHOMEHOUSEHOLD INCOMEHOUSEHOLD INCOMESHUMAN DEVELOPMENTINCOME DISTRIBUTIONINCOME INEQUALITYINCOME LEVELINCOME SECURITYINCOME TAXINCOME TAXESINDIVIDUAL ACCOUNTINDIVIDUAL ACCOUNTSINEQUALITYINFORMAL ECONOMYINFORMAL SECTORINSTITUTIONAL CAPACITYINSTITUTIONAL REFORMINSTRUMENTINSURANCE PENSIONINSURANCE PRODUCTSINTEREST RATEINTERNATIONAL MARKETSINVESTMENT MANAGEMENTINVESTMENT POLICIESINVESTMENT RETURNSINVESTMENT RISKSLABOR FORCELABOR MARKETLEGAL FRAMEWORKLEGISLATIONLIFE EXPECTANCYLIVING STANDARDMACROECONOMIC POLICIESMANDATORY SCHEMEMARKET ECONOMYMARKET VOLATILITYMINIMUM BENEFITMINIMUM INCOMEMONETARY FUNDNATIONAL PENSIONNATURAL RESOURCENATURAL RESOURCESNORMAL RETIREMENT AGENOTIONAL ACCOUNTNOTIONAL ACCOUNTSOLD-AGE INCOMEOLD-AGE PENSIONOLD-AGE PENSIONSOUTPUTOUTPUTSPAYROLL TAXESPENSIONPENSION ADMINISTRATIONPENSION ARRANGEMENTSPENSION AT RETIREMENTPENSION BENEFICIARIESPENSION BENEFITPENSION BENEFITSPENSION COSTSPENSION INCOMEPENSION INSURANCEPENSION INSURANCE FUNDPENSION INSURANCE SYSTEMPENSION LIABILITIESPENSION POLICIESPENSION PROGRAMPENSION PROVISIONPENSION PROVISIONSPENSION REFORMPENSION RESERVEPENSION SAVINGSPENSION SCHEMEPENSION SYSTEMPENSION SYSTEM PARAMETERSPENSION SYSTEMSPENSIONERSPENSIONSPERSONAL INCOMEPERSONAL PENSIONPERSONAL TAX RATEPOLITICAL RISKSPORTFOLIOPORTFOLIO INVESTMENTPREGNANCYPRICE GROWTHPRICE INDEXATIONPRISONERSRAPID GROWTHRATE OF GROWTHRATE OF RETURNREFORM PROGRAMREGULATORY FRAMEWORKREGULATORY INFRASTRUCTUREREPLACEMENT RATEREPLACEMENT RATESRESERVE FUNDRESERVESRETIREERETIREESRETIREMENTRETIREMENT AGESRETIREMENT BENEFITRETIREMENT BENEFITSRETIREMENT INCOMERETIREMENT INCOMESRETIREMENT SAVINGSSAVINGS SCHEMESSECURITIESSOCIAL ASSISTANCESOCIAL INSURANCESOCIAL INSURANCE BENEFITSOCIAL INSURANCE BENEFITSSOCIAL INSURANCE CONTRIBUTIONSOCIAL INSURANCE CONTRIBUTIONSSOCIAL INSURANCE FUNDSOCIAL INSURANCE PROGRAMSSOCIAL INSURANCE SYSTEMSOCIAL INSURANCE SYSTEMSSOCIAL PENSIONSOCIAL PENSIONSSOCIAL PROTECTIONSOCIAL SECURITYSOCIAL SECURITY BENEFITSSOCIAL WELFARESUPERVISORY FRAMEWORKSUPPLEMENTARY PENSIONSUPPLEMENTARY SCHEMESUSTAINABILITY ANALYSISTAXTAX BENEFITTAX RATETAX TREATMENTTECHNICAL ASSISTANCETRADE UNIONSTRANSITION ECONOMIESTRANSPARENCYTREASURYTRUST FUNDUNEMPLOYMENT INSURANCEUNEMPLOYMENT INSURANCE FUNDUNEMPLOYMENT RATESVALUATIONSVOLUNTARY PENSIONVOLUNTARY PENSIONSWAGE GROWTHWILLWITHDRAWALWOMANWORKER CONTRIBUTION10.1596/19460