Azerbaijan, Baku, Feb. 10 / Trend A. Akhundov /
The transfer of some social deductions on the actual accumulation will allow getting additional revenues and increase the amount of pensions in Azerbaijan, the president of the U.S company Overture Financial Mohammad Baki said at a presentation on "pension - insurance system in Azerbaijan in 2020: a look into the future, the results of actuarial studies" in Baku.
"The transfer of 3 percent on a real accumulation during 20 years will increase the pension by 5 percent, within 40 years - by 10 percent," he said.
He said that the deductions may begin in 2015. This will hit about 190 million manat per year.
Chairman of the Azerbaijani State Social Protection Fund Salim Muslimov told Trend earlier that it is planned to transfer 2 percent of social deductions to a bank account at the first phase of using the accumulative component of the state program to develop the pension-insurance system in Azerbaijan.
At present, the deductions for compulsory social insurance of an employee is formed, as we know, from two sources: employers make deductions for social insurance at a rate of 22 percent from the wage fund and deduct 3 percent from the employee's salary.
"We conduct research within the projects for long-term planning of the Azerbaijani pension insurance system development with the World Bank and Overture Financial company," Muslimov said. "We received initial recommendations. According to them, it is advisable to start using the accumulative component from transferring 2 percent of deductions for the actual accumulation."
He said that the legal framework must be prepared before late 2013 to use the accumulative component in Azerbaijan.
"Then these funds can be placed as the investments or through the Azerbaijani Mortgage Fund (AMF) and so on," he said. "This will also play an important role to develop the financial market in the country."
The official exchange rate is 0,7863 AZN/USD on Feb. 10.