State Great Khural Plenary Session yesterday held voting whether to discuss the draft resolution on approval of the State Policy on Pension Reforms. The intorduction was done by the Minister of Population Development and Social Welfare C.Erdene.
Mongolia has approved the Social Welfare laws in 1995, Main Directions of State Policy on Pension Reforms until 2021 in 1999 and Law on Pansion Insurance Fund since the country shifted to market economy. Current pension insurance fund has only only layer and is based on solidarity.
In past 10 years the population increased by 16.1 percent and the number of elders has increased at faster pace by 21,9 percent.
While the demand starting from 2030 for the bigger funds for pensions will increase as the number of aging population will increase as the baby boomers of 1960s and 1970s will age by then and the current pension fund system cannot ensure the sufficient funds. For instance, in past 10 years the population increased by 16.1 percent and the number of elders has increased at faster pace by 21,9 percent.
Moreover with the increase in the average aging of the population the ratio of the pension beneficiaries to 10 social welfare payers will increase, for instance the number was 4 in 2013, is to become 7 by 2030 and become to 9 in the years to come. If the reforms to the pension fund are not done the loss of the will reach 4.5 percent of GDP by 2020, 7 percent of GDP by 2030 and 12 percent in long-term.
Minister of Population Development and Social Welfare warned that if no decent reforms done to the pension funds, ratios and pension age the collapse of the system is very near.
State Policy on Pension Fund Reform is to cover 2015-2030 and has main 5 chapters, 9 sub chapters and 75 provisions.
According to Minister S.Erdene MNT 8,8 trillion is required to finance the pension insurance fund, therefore imposing the need to seek for additional sources of funds from the government bonds, private pensions funds and additional pension programs.
The draft policy document also provisions to increase the pension age in phases through 2017-2030 adding that the herders and individuals who are paying their social security fees should be excluded from this increase of pension age.
The draft policy document received approval of 72.4 percent of the MPs and therefore was submitted to the initial discussion.
State Great Khural Plenary Session yesterday held voting whether to discuss the draft resolution on approval of the State Policy on Pension Reforms. The intorduction was done by the Minister of Population Development and Social Welfare C.Erdene.
Mongolia has approved the Social Welfare laws in 1995, Main Directions of State Policy on Pension Reforms until 2021 in 1999 and Law on Pansion Insurance Fund since the country shifted to market economy. Current pension insurance fund has only only layer and is based on solidarity.
In past 10 years the population increased by 16.1 percent and the number of elders has increased at faster pace by 21,9 percent.
While the demand starting from 2030 for the bigger funds for pensions will increase as the number of aging population will increase as the baby boomers of 1960s and 1970s will age by then and the current pension fund system cannot ensure the sufficient funds. For instance, in past 10 years the population increased by 16.1 percent and the number of elders has increased at faster pace by 21,9 percent.
Moreover with the increase in the average aging of the population the ratio of the pension beneficiaries to 10 social welfare payers will increase, for instance the number was 4 in 2013, is to become 7 by 2030 and become to 9 in the years to come. If the reforms to the pension fund are not done the loss of the will reach 4.5 percent of GDP by 2020, 7 percent of GDP by 2030 and 12 percent in long-term.
Minister of Population Development and Social Welfare warned that if no decent reforms done to the pension funds, ratios and pension age the collapse of the system is very near.
State Policy on Pension Fund Reform is to cover 2015-2030 and has main 5 chapters, 9 sub chapters and 75 provisions.
According to Minister S.Erdene MNT 8,8 trillion is required to finance the pension insurance fund, therefore imposing the need to seek for additional sources of funds from the government bonds, private pensions funds and additional pension programs.
The draft policy document also provisions to increase the pension age in phases through 2017-2030 adding that the herders and individuals who are paying their social security fees should be excluded from this increase of pension age.
The draft policy document received approval of 72.4 percent of the MPs and therefore was submitted to the initial discussion.