Pension reform

OLD AGE PENSION EXTENSION FOR MONGOLIAN HERDERS, SELF-EMPLOYED AND INFORMAL ECONOMY WORKERS

In twenty years since Mongolia embarked on its transition towards a market-based economic framework, the Government of Mongolia introduced a new social protection system comprising (i) social insurance to support employees and self-employed from the risk of falling into poverty; and (ii) social welfare services and social assistance benefits to protect minimum living standards for the poor and vulnerable.

At the current stage, the social insurance system, and in particular the component providing for old age pensions, has reached a point in its development at which financial imbalances are evident and other features of its design should be reassessed. One of the pressing problems is the coverage of the herders, self-employed and informal sector workers with social security schemes. Today, more than 80 per cent of them live with insufficient income security as they participate in the social insurance old-age pension scheme on a voluntary basis. Together, these three groups account for more than half of the labour force in Mongolia.

In September 2013, the government, with the support of the UN working Group on Social Protection, has embarked in the assessment based national dialogue on social protection and employment promotion. The ABND aims at determining the definition of a SPF in Mongolia and obtaining a preliminary cost estimate of achieving this nationally defined SPF in Mongolia. Ensuring income security among all elderly-person is one of the four guarantee of the social protection floor that the government has committed to realize for all in Mongolia. In parallel to the ABND process, the government, led by the Ministry of Population Development and Social Protection, together with the social partners, are discussing the parameters of the proposed universal old-age pension.

The ILO/Japan MAPS Project seeks to guide the government and social partners on the formulation of sustainable measures to increase old age pension coverage among vulnerable groups, including herders, self-employed and informal sector workers, based on actuarial, legal and institutional assessments in accordance with the ILO Conventions and Recommendations. 

Resources:

REPORTS:

Financial assessment of the proposed reform to the social secuty system for older persons and a proposed new pension scheme for the herders and self-employed person (in english and in mongolian)

Interim report on Expanding universal old age pension scheme in Mongolia: Obstacles and scenarios with broad options

EVENTS:

High level national workshop on extension of old-age pension to herders and self employed, 22 May 2015

Event report 

Presentation: ILO comments on the proposed pension reform (2015-2030) and extension to herders, self-employed, informal economy workers, Kroum Markov 

Presentation: Actuarial assessment of the public pension scheme in Mongolia, Hiroshi Yamabana and Kroum Markov 

Presentation: Guaranteeing a social protection floor for all older people, Celine Peyron Bista

Presentation: MONEF's attitute to proposed pension reform and extension to herders and self-employed, D.Narmandakh 

National Tripartite Workshop: Old Age pension Extension for Mongolian Herders, Self-employed and Informal economy workers, 11 December 2014

ToR of National Tripartite Workshop

National Tripartite workshop on Validating broad scenarios for the extension of old-age pension for all, 11 September 2014

Event report 

Presentation: MONEF's position on OAP reforming

Presentation: CMTU's position on OAP reforming

Presentation: MPDSP: Current situation pension scheme and reform objectives

Tripartite meeting: Old age pension extension for Mongolian herders, self-employed and Informal economy workers, 19 June 2014

Minutes of tripartite meeting

TOR of Tripartite meeting

Experts' Consultation: Old Age pension Extension for Mongolian Herders, Self-employed and Informal economy workers, 29 April 2014

Brief minutes of Experts’ consultation

TOR of experts' consultation

The individual consultation meetings at national level

Consolidated minutes (April - May 2014), T.Batsukh