By 15 June the State Fund for Social Security (SFSS) will define the list of foreign citizens working in Azerbaijan, who are to pay obligatory social insurance payments from 1 January 2006, Salim Muslimov, the chairman of the SFSS, told Trend .
A process on admission of accounts are delayed due some problems linked with the contractors and subcontractors involved under the PSAs. The foreign citizens are mainly involved in the oil contracts, Muslimov underlined.
The point is that under the ACG only the contractors have been released from payment of social insurance fees, while the question is open in respect to sub-contractors. In other oil companies he foreigners involved in contractor and sub-contractor companies are released from social payments. There are also problems with the contractor companies which along with the PSA also carry out other activities. So, there was established a special commission with their participation for the resolution of these issues. It will promote the foreigners involvement in the payment of social insurance fees, Muslimov assures.
We had meetings with experts of BP, the Azerbaijani-US Chamber of Trade and
Industry (AMCHAM), the US embassy in Azerbaijan and explained the importance of the process in connection with Azerbaijans transition to a new pension system and relevant international standards. The major requirement is the application of the system adopted in the European community. In accordance with this system, in EU countries pension provision is implemented through proportional system, which stipulates opening of individual accounts for any employee irrespective of citizenship, Muslimov stressed. The funds accumulated in the accounts of foreign citizens will be transferred to their accounts in the country where they will retire.
The issue on the SFSSs signing of agreement with the relevant organizations exiting in other countries. The issue with the United States can be resolved shortly and today exchange of information is carried out with Social Insurance Agency of the US Department of State, he underlined.