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Turkmenistan moves to conditional-cumulative pension system

Turkmenistan Materials 22 October 2012 15:24 (UTC +04:00)

Turkmenistan, Ashgabat, Oct. 22 / Trend H. Hasanov /

The Turkmen Parliament of the fourth convocation has approved a law on 'Approving and introducing the Turkmen Code on the social protection of the population', the official Turkmen source said.

The law was adopted in connection with the plan for passing to a model of the conditional-cumulative pension system.

'The transition to this type of pension system in Turkmenistan will allow citizens to accumulate pension capital through pension insurance paid by the employer and personally', the parliament said. 'The amount of a pension without any restrictions will depend on it'.

According to the specialists, the main purpose of the new pension system is the maximum coverage of citizens by the pension insurance during their active working life.

According to local experts, the conditions will be ensured for each person to accumulate pension capital through the insurance paid for by the employer and personally. The amount of a pension without any restrictions will depend on it.

The amount of pension will be adequate to the sum of pension contributions registered on the personal account of each person.

While choosing a model the new system and the creation of the pension fund, the experience of foreign countries that have introduced such a system was taken into account.
Support for the development of a social protection system in the Turkmenistan project is being implemented in the country with the participation of United Nations Development Programme (UNDP).

The law on State Pension Insurance came into force in Turkmenistan in April. It was prepared on the basis of the order of the Turkmen President as of July 9, 2010 on 'Establishing the Turkmen Pension Fund and introduction of a conditional-cumulative pension system in Turkmenistan'.

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