TODAY.AZ / Business

Official says pensions not to be affected by inflation

26 February 2015 [16:15] - TODAY.AZ

/By AzerNews/

By Amina Nazarli

Azerbaijan State Social Protection Fund may increase pensions in the case of consumer price growth as the result of the manat’s exchange rate, said Elman Mehtiyev, Chairman of the SSPF

“Every year the fund implements an indexation of pensions in accordance with the level of inflation. In the case of changes in consumer price the amount of pensions and pension capital will be automatically increased to eliminate any negative impact,” he explained.

Mehtiyev stressed the pension system has its own protection mechanisms against the impact of fiscal policy and indexing. All checks and reviews are made annually.

“The global drop in oil prices has had no impact on financial indicators of the SSPF. The fund ended last year with a significant surplus,” the chairman noted.

Moreover, he stated that like in 2014, 2015 pensions would be paid ahead of schedule. The SSPF’s main task is to pay March pensions ahead of the Novruz holiday, celebrated on March 21.

“We will pay it, as we have sufficient reserves,” he said.

The average size of pensions in Azerbaijan as of January 1, 2015 stands at 173.4 manats, while the average size of pensions according to the seniority averages at 192.3 manats.

The SSPF said that as of this period some 1,291,000 labor pensioners have been registered. The number of pensioners has increased by 13,000 people or 1 percent in comparison with 2014.

The number of people, who received age pensions, has dropped by 8,000, while the number of those receiving a survivor's pensions has risen by 4,300.

During the given period the number of people receiving disability pension has increased by 16.700.

The official exchange rate of the US dollar and Euro to Azerbaijani manat was set at 1.0501 and 1.1942 manats respectively, as of February 26.

Azerbaijan’s manat has been stable at just over 0.78 per dollar since mid-2011 until the recent slump in global oil prices put pressure on Azerbaijan.

The country, which relies on hydrocarbons for more than 90 percent of its exports and has built its state budget around the petrodollars - 65 percent - was forced to devaluate its national currency.


URL: http://www.today.az/news/business/138912.html

Print version

Views: 1860

Connect with us. Get latest news and updates.

Recommend news to friend

  • Your name:
  • Your e-mail:
  • Friend's name:
  • Friend's e-mail: