Pension Reform Begins as Mongolia Shifts to Semi-Funded System

Mongolia has officially launched a semi-funded pension system. As of now, every insured individual has been assigned a “semi-funded personal pension account.” This move has enabled 1.2 million active contributors to the social insurance system to begin building personal pension savings under the initiative “My Pension Savings”, with a total of 214.8 billion MNT already accumulated.

Following his appointment, Minister of Family, Labour and Social Protection Mr.  L. Enkh-Amgalan took decisive action to recover funds lost from the Social Insurance Fund. A formal complaint was submitted to the Prosecutor’s Office to identify and hold accountable those responsible for placing the fund at financial risk.

As a result, court rulings ordered the recovery of 207.77 billion MNT from the failed Capital Bank and Chingis Khan Bank. Of this, 53 billion MNT has already been collected in cash and assets and returned to the Social Insurance Fund.

In addition, a Public Oversight Council and non-staff Expert Committee were established under the National Social Insurance Council to enhance transparency and risk management. A professional asset management team was also appointed through an open selection process to safeguard the fund’s assets.

Furthermore, 700 billion MNT of the Social Insurance Fund’s liquid assets have been placed in time deposits with four systemically important banks. This strategic investment is expected to generate an additional 105 billion MNT in interest income. As part of this initiative, 8.6 billion MNT in interest earnings for May has already been received and reinvested into the fund.