Creation of pension reserve in Azerbaijan can eliminate delays in payment
Azerbaijan, Baku, June 29 / Trend H.Veliyev /
Authorised banks that issue pension benefits must not allow delays in the process of their distribution, the chairman of the Azerbaijani State Social Protection Fund (SSPF), Salim Muslimov, told reporters on Friday.
"We have been trying during the past month to resolve issues with the financing of pensions. Problems may be associated only with delayed transfers of funds through banks. There are no problems on payment of banking services, as well as the financing of pensions from the State Fund," Muslimov said.
He said the financing of the main part of pension benefits is carried out by payments collected by the state social insurance.
"Funds transferred on social payments are immediately transferred to the banks for payment of pension benefits. For example, yesterday the State Fund transferred more than 30 million manat for the payment of pensions in the regions of the country," he said.
Monthly 200 million manat are required for payment of pensions.
The State Social Protection Fund, according to Muslimov, repeatedly raised the issue of establishing a pension reserve which is successfully practiced in many countries. This issue is reflected in the State Programme of development of the pension, insurance system for 2009-2015.
"At the same time the current level of collecting social insurance contributions does not allow us to create such a reserve. On the other hand, the matter shall be fixed by law," the Fund's head said.
The average pension in Azerbaijan reaches $195, which represents 40 per cent of the average wage in the country.
At present, the distribution of pensions and social benefits in the country is held by two authorised banks - International Bank of Azerbaijan and Kapital Bank.
Costs for the pensioners' banking service are covered by the SSPF.
The official exchange rate is 0.7856 AZN to $1 on June 29.