Alterations to be introduced to pensions calculation rules

Day.Az reports with reference to AzerTac that according to chairman of the state fund of social protection Salim Muslimov from January 1 of 2009 the calculation of pensions can be conducted not by the principle of salary but on the work record. Proposals are being prepared for the purpose.

The fund chairman, explaining the reason of new proposals, said that the pension of each person consists of two parts. The first part, covering a period until January 1 of 2006, calculates pensions in line with the old pension system of the legislation and the second on the basis of the data of the system of individual record after January 1 of 2006. There are no problems with the calculation of the second part, for every person has his own individual account. Yet, for defining the account before January 1 of 2005 the reference on the salary for 2004-2005 is required. The pension of any citizen is defined on the basis of this reference.

Muslimov noted that this causes negative events in the pension system. Thus, most references are got from archives and enterprises, which were functioning earlier. The fund chairman announced that the restrictions of the salary while calculating pensions have been annulled as well. He noted that such events create conditions for the artificial increase in the number of pensions.

Stating that new proposals are prepared for preventing such negative events, the fund chairman noted that if proposals are adopted by the end of this year, this system will be applied to those, who will be retired from January 1 of 2009.

/Day.Az/