State pension insurance law comes into force in Turkmenistan
Turkmenistan, Ashgabat, April 13 / Trend H. Hasanov /
The law on 'State Pension Insurance' has come into force in Turkmenistan today, an official Turkmen source said.
The law has been prepared as a result of an order by the Turkmen president on the 'Establishment of the Turkmen Pension Fund and the introduction of an conditionally accumulative pension method', dated July 9, 2010, as well as the tasks to update and bring the legislation regulating social security into line with international standards.
It was earlier reported that the new pension system will be introduced in the country from January 1, 2012, in accordance with the national code on 'Social Security'. Local experts think that these measures are 'objectively necessary'. There are several reasons.
"These are economic factors, the expected demographic processes and ensuring the financial sustainability of the pension system, based on the principles of justice and solidarity between generations," the experts say.
The main purpose of the new pension system is the maximum coverage for citizens, providing them with the relevant income and pension insurance during their active working life.
According to the experts conditions will be ensured to accumulate the pension capital through pension insurance paid by the employer and the person themself. The amount will be adequate for the amount of pension contributions on the personal account of each person.
When choosing a model of the pension system and the establishment of the pension fund, the experience of foreign countries that have implemented such a system was taken into account.
The project 'Support for the development of the social protection system in Turkmenistan' is being implemented in the country with the participation of the UN Development Programme (UNDP). All prepared project documents are examined by international experts in accordance with UNDP procedures.