Azerbaijan to offer options to pensioners in calculating their pension benefit

Azerbaijan to offer options to pensioners in calculating their pension benefit
# 15 December 2008 15:33 (UTC +04:00)
Baku. Ilhama Isabalayeva - APA. Azerbaijan State Social Protection Fund (SSF) will amend a number of additions to the proposals send to the Cabinet of Ministers to offer calculation of labor pensions on the basis of job seniority.
Salim Muslimov, Chairman of the Fund, told a press conference that under the proposals it had been offered to determine the amount of pension benefits on the bases of work record cards as of January 1, 2006.
“Based on this information, if a person had more than 5-year work experience before 1 January 2006 years, he has the right to receive minimum labor pension. At that time, minimum labor pension was 25 manats. Those who had more than 5-year experience will have to pay 8% of 25 manats for insurance for each year,” he added
He noted that the Ministry of Finance suggested amending the proposals because not all people will agree to the pension calculation on the basis of seniority. Therefore, citizens must be given the right of choice in retirement.
“Those who want to get their pensions calculated based on salary, rather than seniority shall apply to the Fund in a written form and provide information on the amount of wages for the entire period of work. So, they will get 60% of their salary for 25 years of experience and plus 2% each year after 25 years,” he added.
According to Muslimova, the new proposals are expected to increase pensions for persons with high seniority.
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THE OPERATION IS BEING PERFORMED