Baku, Azerbaijan, July 12
By Zaur Mustafayev, Anvar Mammadov – Trend
Creation of private pension funds in Azerbaijan is a topic on the agenda, Sahil Babayev, Azerbaijan’s minister of labor and social protection of the population, told reporters in Baku July 12.
He said that there are no restrictions for this.
“This is a comprehensive issue and it cannot be solved by short-term analysis,” Babayev said. “It is necessary to carefully analyze this process, which takes a long time.”
The minister noted that Azerbaijan is interested in developing private pension activity and is ready to consider proposals of the private sector.
“Creation of private pension funds and the development of their activity will in turn support the development of the private sector as a whole,” he added. “Endowment life insurance is already in effect in Azerbaijan, which can be considered as an alternative to private pension funds.”
Private pension funds are structures that carry out the turnover of social insurance capital, the assignment and payment of pensions. Unlike public pension funds, a private pension fund is a base created for the accumulation of pensions at the expense of the population’s own income.
Basically, these funds organize the turnover of social insurance capital paid by citizens by receiving additional income from this, and then at the expense of this income increase pension provision.
Through these funds, many countries managed to increase pension provision. Private pension funds operate in Germany, the UK, Ireland, Turkey and other countries.
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