Azerbaijan, Baku, June 28 /Trend, A.Akhundov/
Azerbaijan needs to make amendments to the Law on Labor Pensions and Law on Social Insurance in order to change the order of calculating pensions for foreign nationals living and working in Azerbaijan, chairman of the State Social Protection Fund (SSPF) of Azerbaijan Salim Muslimov told journalists on Tuesday.
"In 2005, we made changes to these laws under which all foreign nationals working in Azerbaijan should be registered in the individual registration system of the State Fund, and their premiums for social insurance should be accumulated in these accounts. We created for them no conditions different from the conditions for citizens of Azerbaijan," said Muslimov.
He said research has shown that this procedure will lead to certain problems. Pensions in Azerbaijan consist of the basic and insurance parts."Today, 50 percent of collected premiums for social insurance is accumulated in the individual accounts, and the remaining 50 percent is paid for the basic part of pensions and various social benefits. In calculating the insurance part of pension, the entire amount accumulated in individual accounts is taken into account. But in the case foreigners here, there are problems," said Muslimov.
He said if the foreign national reaches the retirement age and wants to retire, then under present conditions, they are also paid the basic part of pensions.
"Most of the funds used for payment of basic pension to the population is formed at the expense of the state budget. Therefore, we do not support paying the basic pension to foreigners," Muslimov said.
Therefore, he said, it is useful to define other terms to calculate pensions for foreign nationals.
"In particular, it needs to change the legislation under which the social insurance premiums paid to foreign citizens should be fully transferred for their individual accounts, that is not half of these premiums, as it is now done. And if they use any benefits, it needs to reduce the same amount in their account. That is, their pension will be fully formed at the expense of funds available in their account," said Muslimov.
A two-day international technical seminar "Social protection of migrant workers and globalization" is conducted in Baku with the support of the SSPF, ISSA and the International Association of pension and insurance funds on June 28-29.