Some approaches to implementation of the basic pension insurance system in Mongolia

Abstract

The effective operation of financial system plays an important role in providing the stable financial condition, increasing the financial intermediation scope, providing the base of secured population living and promoting development. In order to provide the pension insurance fund of Mongolia with the independent and effective operation, the basis of the national basic pension insurance in Mongolia was formulated by calculating the planning and sources of this fund based on this research on current pension insurance system and its comparison to the similar system of some countries. The methods such as comparison, integration, conclusion, mathematic-statistics and prost program were used in the research. The specific features of pension insurance systems of Chile, Sweden and Japan were compared. If the basic pension is issued to all people who got on for 60, the significant state budget burden will occur. To avoid this problem it is accepted to issue a pension to people who have paid for social insurance contribution for 10 years. If people pay contribution for 10 years, they can get pension of 2nd phase proportionally and plus basic pension. There is need to start pension renovation in 2013 and finish in 2015. If it is not immediately start such innovation, the demographic structure of our country will be complicated. It is suitable that the basic pension rate should be established by considering the minimum level of living. In case of its establishment of 118,1 thousand MNT, it may account for 1.7-1.6% of GDP and 4.9-4.0% of the united state budget.