Will be eliminated basic pension

The concept of reforming the pension system in Azerbaijan should lead to fundamental changes in the pension system , the chairman of SSPF Salim Muslimov said in an interview to Rossiyskaya Gazeta .

He said the long-term program includes four basic components . The first is the complete elimination of the basic pension and ensuring its growth by indexing the entire amount . The second is the distribution of sources of cash flow , the separation of direct obligations of the fund and the pension system of pension liabilities . The third is setting the maximum amount of the contribution of social insurance deducted by the system of individual registration. The fourth is the introduction of the voluntary character of the pension system, which creates conditions for the formation of specialized pension funds , and the application of the principle of voluntary character will not contradict the idea of ??introducing private pension funds.

Recall SSPF budget is formed by transfers from the State Oil Fund and mandatory insurance contributions paid by employers ( 22% of the wage fund ) and employees ( 3%). The main share of revenues - 64 % - is on the budget sector. This position is not disclosed.

The average pension in Azerbaijan is 42 % of the average salary, tasked to bring the level up to 60-70 % of the average amount of pay. - 17D-