The State Fund for the Social Security (SFSS) submitted the draft law В"On private pension funds” to the Azerbaijan President’s executive office and the Cabinet of Ministers, the fund’s chairman Salim Muslimov told Trend on 26 August.
"Passing such a law will enable to introduce the accumulating system in Azerbaijan on deductions for the social security”, Muslimov said.
According to him, under the legislation introduction of the base pension notion, which will be equal to the minimal salary is planned. It means pensions will grow parallel to the growth of the minimal salary.
"Our goal is the maximal approaching of pensions to the average salary”, Muslimov said.
The new legislation will also reflect the issues of indexation of pensions to be executed once in a year with taking into account the inflation rates.
The accumulating system will appear in Azerbaijan not earlier 2008, Muslimov said.