Pension system in Azerbaijan to be developed on basis of five-year State Program

Azerbaijan, Baku, Dec. 24 / Trend corr N. Ismayilova / The State Social Protection Fund of Azerbaijan is devising a State Insurance Pension System Development Program of Azerbaijan for the next five years, Salim Muslumov, Head of the Fund, said on Dec.24. 

"The State Program has already been submitted to the Presidential Administration for consideration and will be approved in near days," Muslumov said. 

The basic goal of the Fund is to implement measures within the conception of reforming pension system and a new State program was developed in connection with this project.

This program includes many elements on developing insurance pension system. Before, the basic goal was to make the minimal level of pension close to cost of living in order to improve social condition of citizens. But now, the basic goal is to develop two essential directions which are pension insurance and system of state assistance.

"All these systems will meet modern standards and we have sufficient resources to realize these measures," the Head of the Fund said.

The State program envisages holding long-term actuarial calculations to work up forecasts of economical, demographic and social development of the country. To improve social condition of citizens, pensions of people, retired till 2006, will be paid with the new system of calculations. It also considers permanently financing monthly reserve fund of pension provision that enables to escape instances of pension delay.    

As of Oct. 1, 2008, the number of pensioners in Azerbaijan rose up to 25,000 and totally reached 1,266mln pensioners. According to calculations, the number of pensioners in Azerbaijan is forecasted to reach 1,29mln in 2009. The forecasts show that at the beginning of 2009 the number of pensioners will reach 1,277mln and till 2010, this number will exceed 1,303mln people.   

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