Azerbaijan, Baku, December 29 / Trend , U.Ismayilova /
The base part of labor pension will be liquidated in Azerbaijan, the head of the State Social Protection Fund (SSPF) Salim Muslimov said on Dec. 29.
"The base part is necessary because certain part of pensions is financed by transfers from the Public budget," said Muslimov.
According to him, the state pension-insurance system development program for 2009-2015 also stated that after a certain time, the collected insurance payments, the legalization of employees' salaries, increase in the number of those registered in individual account system will create conditions to refuse from the Public budget.
Due to it, it will not be necessary to specify the base pension, although it can be preserved to some extent, since it is inevitable," said Muslimov.
"Gradually this minimal part should lose its significance, since everyone should know how much social benefits they paid, how much money has accumulated in individual account, as well as the amount of the indexed part," said the head of the Fund.
According to Muslimov, information on each insured citizen will be placed on the official website of the State Fund, as well as in the end of the year, all insured persons will receive written notification on the accumulated amount in their account.
The labor pension consists of two parts in Azerbaijan - base and insurance. Currently the base pension in the country is 75 manat. Starting from the next year, Azerbaijan will introduce a new mechanism for calculating pensions - not in terms of salaries for the last five years of work, but according to work experience, which shall be not less than 10 years.
Muslimov said formerly that starting from the next year the minimum pension in Azerbaijan will total 90 manat.
Official rate on Dec. 29 is 0.8031 AZN/USD.
Do you have any feedback? Contact our journalist at agency@trend.az
