Turkmenistan adopts law ‘On State Pension Insurance’
Turkmenistan, Ashgabat, April 2 / Trend H. Hasanov /
During a regular meeting of the Turkmen Parliament of the fourth convocation, a new draft law "On State Pension Insurance" has been considered and approved, an official Turkmen source said on Monday.
The law has been prepared by order of the President of Turkmenistan on July 9, 2010 'on the creation of the Pension Fund of Turkmenistan introduction in Turkmenistan of notional accumulative pension method', as well as tasks to update and bring legislation on social security into compliance with international standards.
'Building a modern pension meeting the requirements of time and the fundamental principles of the international law pension system of the country is one of the most important priorities of policy of the Turkmen state', a statement said.
Earlier it was reported that accumulative pension system will be introduced in Turkmenistan in accordance with the national code of 'On Social Security' from Jan 1, 2012. Local experts believe that these actions are 'objectively necessary'.
There are several reasons for this:. 'Economic factors, expected demographic processes and ensuring the financial sustainability of pension system, based on the principles of justice and solidarity between generations', they commented.
The main purpose of the new pension system is the maximum coverage by the pension insurance of citizens during their active working life provided by their relevant income.
According to experts conditions will be provided to enable any person due to have pension insurance paid by an employer and personally to accumulate pension assets, by the amount at which the amount of pension without any restrictions will depend on. The pension will be adequate to the amount of pension contributions accounted for on a personal account for each person.
When choosing a model of an accumulative pension system and the establishment of the pension fund, the experience of foreign countries that have implemented such a system was taken into account. A project entitled Support to development of the social protection system in Turkmenistan is being implemented in the country with the participation of the UN Development Programme (UNDP). In accordance with UNDP procedures, all prepared project documents are examined by international experts.