Social Insurance: Advanced Scheme to Rob the Poor

Our society has turned into one where the public finances the state and in return, the state robs us even more. Did you know that the state is trying to increase social insurance premium by five percentage points to 19 percent of our salary by 2020? Well, the only solution the government came up with to pay off the growing pension fund deficit was breaking into ordinary working people's pockets.

Government officials explained this decision very deceptively, saying, 'Increasing social insurance premium will make it possible to set higher pension for people. It is dedicated to prevent potential risks when the pension age is raised in 20 to 30 years.' What this actually means is that the state plans to exploit the public as much as possible in the meantime.

Don't be fooled when government officials claim the social insurance premium accumulates into savings. On the contrary, it is recorded under your name and spent to 'sustain' five different funds.

'Revenue to the social insurance fund is spent on five funds. Among them, the pension fund receives the most financing from the state. Other countries have these funds recover their spending and create accumulation through revenue, or operate under solidarity principle. In Mongolia, we go by the principle to have people of working age finance the seniors. We've been operating under the 'one for all' motto for many years and yet, there are some people who want their money only for themselves. They don't understand this financing principle well. Basically, it means that Dorj's social insurance premium is used to provide Dulmaa's pension. So, it means that it's impossible for Dorj to have (social insurance) savings. However, the amount he paid will be recorded,' stated G.Ganchimeg, policy and coordination specialist at the Ministry of Labor and Social Protection.

Out of the 1.4 trillion MNT generated to the social insurance fund in 2017, 61.3 percent of the amount was reallocated to the pension insurance fund, 22.2 percent to the health insurance fund, seven percent to benefits and unemployment insurance funds respectively, and the rest to the insurance fund for industrial accidents and occupational diseases. This basically means that the social insurance fund is practically empty. It wouldn't be an exaggeration to say that this fund exhausts all the money taxpayers pay within the year and then some.

Although 65 to 75 percent of the money centralized to the social insurance fund is allotted to the...

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