Azerbaijan, Baku, November 26 / Trend , I.Khalilova /
State Social Protection Fund (SSPF) of Azerbaijan estimates additional costs of creating a unified system of calculating pensions, SSPF Chairman Salim Muslimov said at the Parliament.
"Currently, researches are held and calculations are carried out in order to eliminate the difference between the pensions of retired before and after 2006, said Muslim. - I believe in 2010 proposals will prepared for appropriate actions in this direction".
From January 2010 the State Fund will shift to a new system of calculating pensions, which will be applied to persons who retired from January 1, 2006.
"Transition to a new system of calculating pensions in Azerbaijan - at the expense of accumulated experience, will lead to the fact that the minimum labor pension in the country will not be below 90 manat," said the former Muslim.
According to him, from 1 January 2006 to 1 October 2009, the Social Fund established the retirement age for 167,891 persons. Of these, 60.4 percent or 101,270 people receive minimum pension of 75 manat, representing 39 percent of all retirees, and only four percent receive pension more than 300 manat (20 percent retirees), and 680 people over manat.
This situation is unfair because some people, receiving an illegal certificate on high salary over the last two years of working experience, receive higher pension, but those who have worked for 40 years receive base pension of 75 manat.
Introducing a new system of calculating pensions will ensure full transparency, Muslimov said.
Under the new system of pension calculation, each year over the past four years will be accounted 170 manat in total for every citizen, considering the inflation in 2006 (8.3 percent), in 2007 (16.7 percent), 2008 (20.8 percent) and in 2009.
Then, this amount will be added to the amount at the individual account collected over four years, and by dividing the sum into 144 months, so will be determined the amount of the insurance part of pension to which the basic pension in the country will be added. This system will allow a minimum amount of pensions to increase to 90 manat.
On Nov. 26, the Parliament of Azerbaijan approved 2010 budget of SSPF, where the revenues and costs are forecasts at the level of 1 757.216 million manat.
Official rate on Nov. 26 is 0.8024 AZN/USD.
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