MNT 113 billion to be spent for pensions per month 2016-11-09 17:49
A meeting of the parliamentary Standing Committee on Social Policy, Education, Culture and Science was held on November 9,in which Minister of Labour and Social Welfare N.Nomtoibayar discussed finances concerning the social insurance fund.
According to the minister, the fund is operatingwith MNT 1.26 trillion in revenue and MNT 1.76 trillion in expenditures,with the MNT 0.5 trillion hole being plugged by through the state budget after the 2016 amendments.
The number of pensioners is growing, with MNT 113 billion being spent per month for 372 thousand pensioners. MNT 60 billion of the pension spending comes from social insurance taxes, while the remaining MNT 53 billion is being funded from the state budget.
Furthermore, the fund’sremaining balance is equivalent to MNT 885.1 billion,of which MNT 57 billion was placed in government securities with a 12 percent annual interest rate; MNT 139.8 billion in 10 commercial banks with 5.5 percent interest; and MNT 111.3 billion in the Treasury Fund with no interest.
If the remaining balance were to be placed in commercial banks with 11.2 percent annualinterest, it would be possible to increase revenue by MNT 5.9 billion in five months and by MNT 20.4 billion by the end of the duration of the agreement (end of 2018), informed Ministry of Labour and Social Welfare.