Pension Reform in Central Asia: An Overview

Abstract: (JEL classifications G23, P35, J26) Seven years ago, Kazakhstan embarked on a dramatic reform of its pension and social security system in order to move from a public defined benefit (“solidarity”) system to one of defined mandatory contributions (accumulative system). At the same time, Kyrgyzstan embarked on a move to a notional defined contribution (NDC) system that has made little progress. Today, major reforms are being planned in both Uzbekistan and Tajikistan as well. This paper surveys the reforms that have taken place, discusses the planned reforms, and places them in the underlying fiscal and demographic contexts of the various countries in the region.