It's time for private pension funds in Azerbaijan
Azerbaijan, Baku, July 12 / Trend A.Akhundov /
The has come to create private pension funds in Azerbaijan, State Social Protection Fund (SSPF) Chief Monitoring Specialist Rustam Rustamov said.
"It is time to open private pension funds in Azerbaijan. The later we get down to it, the more we fall behind in this area," Rustamov said.
He said people's interest in private pension funds will be low at the initial stage.
"Naturally, peoples first will be not so much interested in them, but the important thing is that the process has begun," Rustamov said.
He said banks, investment and mutual funds, as well as any private organization, which will be under state control, may engage in this.
According to the State Program on the Pension System Development in Azerbaijan for 2009-2016, the legal framework for private pension funds will be set up in 2015.
The experiences of other countries are examined in this regard.
Recently, the SSPF delegation visited Germany, Turkey and Poland, and is expected to visit Kazakhstan for familiarization with the local experience
Kazakhstan held radical reforms. The country abolished the state pension fund and set up 16 private funds a decade ago.
Retirement pension consists of two parts in Azerbaijan -- basic and insurance. Currently the basic pension in the country is 85 manat.
The official exchange rate is 0.7864 manat to $1 on July 12.