Financial assessment of the proposed reform to the social security system for older persons and a proposed new pension scheme for the herders and self-employed persons

This report analyses some propositions of the reform of the Mongolian pension system. It also presents an analysis of the implementation of a new scheme for herders and self-employed workers. It is important to bear in mind that this report does not constitute an actuarial valuation of the current social security system in Mongolia. Some of the data needed to proceed were not available. Enough information was however available to have a good idea of the magnitude of the recommended options.

The ILO received a request from the Government of Mongolia to support the actuarial and institutional design of a new pension scheme for the herders, self-employed and informal economy workers. In May 2014, a tripartite Project Steering Committee was formed to guide the work on the pension reform. Since then, several options of pension design have been discussed and proposed by social partners. At the beginning of the year 2015, a draft State pension reform policy for 2015 to 2030 was submitted to the Parliament. The reform objectives are guided by the introduction of comprehensive reforms guaranteeing social protection for the Mongolian elders by introducing multi pillar pension schemes.