Media: Turkmenistan plans to carry out pension reform in 2012

Business Materials 28 January 2011 17:23 (UTC +04:00)

Turkmenistan, Ashgabat, Jan. 28 / Trend H.Hasanov /

Turkmenistan introduces NDC pension system from Jan.1, 2012 in accordance with the Code on Social Security.

The preparatory work is being done on the approved plan of activities, which provides for the transition to this system and establishment of the Turkmen Pension Fund. The "Nektralniy Turkmenistan" newspaper notes that these measures are "objectively necessary."

"The main purpose of the new pension system is the maximum coverage of the pension insurance of citizens during their active work, provided by the relevant income," the paper wrote.

According to local experts, thus conditions will be created at the expense of pension insurance paid by the employer and person to accumulate pension assets, the amount of which will depend on the amount of pension without any restrictions. The amount of pension will be adequate to the amount of pension contributions accounted for the personal account of each person.

The experience of foreign countries that have implemented such a system was taken into account while the project realization. The country with the participation of the UN Development Programme (UNDP) is implementing the project "Support to development of the social protection system in Turkmenistan."

In accordance with UNDP procedures all the prepared project documents will be examined by international experts, after which they will be presented to the Turkmen government.