State Social Protection Fund of Azerbaijan starts financing pensions with additions
Azerbaijan, Baku, July 18 /Trend, A.Akhundov/
From this week, the State Social Protection Fund (SSPF) of Azerbaijan in accordance with the schedule began to finance pensions, taking into account the additions, the SSPF chairman Salim Muslimov said.
"Today, all necessary measures are taken to implement the technical work to enable population to receive additions to pensions," Muslimov said.
According to the State Pension Insurance System Development Program in 2009-2015, starting from July 1, Azerbaijan started using single principle of pension provision.
Based on the new rules, pension rights, appointed until 2006, will be re-counted, and the pensions of about 845,000 people will increase by about 40 percent.
To introduce new rules, amendments were made to the Law on Labor Pensions and the Law on budget of the State Social Protection Fund of Azerbaijan Republic.
Under the amendments, pensioners who retired by Jan. 1, 2006 (except those receiving additions to the labor pension for length of service, in accordance with Article 20 of the Law), the labor pensions will be re-calculated according to their length of service. For each year of service, there will be applied the ratio of 1.93 manat, that the insurance part of the pension will be determined, which will be re-calculated from July 1, 2011.
Official exchange rate is 0.7862 AZN/USD on July 18.