The system of cumulative part of pension will be applied in Azerbaijan from 2010, the Chairman of the State Social Protection Fund (SSPF) Salim Muslumov told on September 19, Trend reports.
According to the calculations of SSPF, the cumulative part of the pension will be formed as the expense of the money stopped from wages, which will be forwarded to the obligatory insurance. Today the social deduction of workers equals 3%. But Muslimov doesn't exclude the possibility of changes in ratio between employers (22%) and employees (3%) by 2010.
After 2010, the cumulative part of the pension will be kept in bank as deposit within 3 years. Up on the completion of three-year period, an opportunity will emerge to use this finance as investments. The rules and directions of these investments should be defined through separate laws that are intended to be adopted in then future. SSPF will manage these finances, and they will be disseminated on terms to receive dividends.
According to Muslimov, initially Azerbaijan wanted to use the experience of Chile in this direction, which is presently applied in Kazakhstan, but it was risky in relation with abruptness in world finance market.
For instance, in 2003 Kazakhstan received more than 30% dividends from dissemination of cumulative part of the pension, with 7-8% annual inflation, when in 2004 the inflation exceeded 50%.
All citizens will not receive the cumulative part of the pension. The persons born after 1973 will be appointed to receive it, Muslimov stressed. It was made in relation with the issue that the persons born in 1973 will be 37 years old in 2010. According to the law, it needs to have 25-year insurance service to receive cumulative part of the pension.
Insured person's receiving the finances of the cumulative part of the pension will be possible only after their reaching pension age. In particular, till retirement, the insured person may receive the finance of the cumulative pension only in two cases. First, if he-she changes citizenship, and second, in case of death of the insured person, his/her cumulative pension will be issued to his/her successor.