Collaboration with the World Bank on Pension Reform

The Mongolian Parliament has approved a policy on pension reform, which includes the implementation of a multi-tiered pension system, gradually transitioning from a distribution system to a partially funded system, as outlined in Mongolia’s long- and medium-term policy documents.

 

To achieve these objectives, the Ministry of Family, Labour and Social Protection has partnered with the World Bank.

 

As part of this collaboration, World Bank Senior Economist Oleksiy Sluchinsky visited Mongolia from November 27-29, 2024, to present and discuss the preliminary findings of pension reform policy options and actuarial calculations with officials from the Ministry of Family, Labour and Social Protection, as well as the Social Insurance General Office. The discussion was led by Ms. L. Munkhzul, State Secretary of MFLSP, and included exchanges of ideas.

 

Due to demographic changes, such as an aging population, the ratio of pensioners to contributors is expected to increase from 5 pensioners per 10 contributors in 2024 to 7 pensioners per 10 contributors by 2030, according to preliminary calculations.

 

Therefore, Mongolia must continue its pension reform, transition to a partially funded system from a distribution model, and implement a multi-tiered pension system.