Azerbaijan news

What private funds give and do not give to pensioners…

Amendments are being made to the Law on Labor Pensions. Milli According to the draft submitted to the Assembly, pensionwill have the right to switch from one type of labor pension to another.

There are other changes in the law. But some deputy and private, which experts have offered for years pension The issue of funds is still not included in the document.

private pension Is it possible to establish foundations in Azerbaijan?

State Social From the Defense Fund “Turan”Was reported that, The activity of private pension funds has long been in the law on labor pensions that, “But still that, It is not applied, because there are certain risks. “

It was noted by the organization that, In world practice, the successful operation of private pension funds is limited: “Private pension funds will operate in the form of long-term investment companies. That is, the money invested in pension funds is a long-term investment, these funds 20Available in 30 years “.

Highlighted from the fund according tothe form in which the activities of these funds will be organized in those years should be seriously assessed: “Because of those persons social in the future of supply snowIt is one of the main responsibilities of the state. “

Reported that, mandatory state here social the amount of insurance premiums should be considered: “Currently, this figure is set at 25 percent. It is necessary to know how citizens will react to the establishment of private pension funds.

Milli Assembly Labor and Chairman of the Social Policy Committee Musa Quliyev in “TuranHe said that, There are no legal obstacles to the establishment of private pension funds. “Retirement is such an issue,” he said that, The current employee wants to invest in a private pension fund. But his retirement age 20-30 years later and will not be guaranteed for these years that, This money will stay there or not, it will be inflated or not.

Deputyto the words of according tofrom the mandatory pension payments of a citizen investing in private pension funds free “If private pension funds are created, it will be created in addition to compulsory social insurance contributions. That is, it will not be so interesting for our citizens. “

Economist Rashad Hasanov told RFE / RL that, At present, the infrastructure and environment in Azerbaijan and conditions do not allow the establishment of private pension funds: “Because in Azerbaijan in the long run, confidence in any fund is very low.”

According to him, a very strong state guarantee is needed in this matter: “Without this, people will not be interested in investing in private pension funds.”

According to the expert according tothe second important factor is to ensure the profitability of these funds after their establishment: 2018In Greece, many private pension funds around the world sank in the global financial crisis. The financial assets placed there have seriously depreciated and they could not fulfill their obligations. “

Economist-expert Speaker Jafarli He told RFE / RL that, The creation of such funds increases the citizen’s choice. According to him according toIn Azerbaijan, this issue is regulated by law and There is an obligation: “According to the law, employees with TIN pay 25 percent of the minimum wage. Those working in the private sector receive the upper part of the minimum wage 10 interest, plus 6 pounds. Public sector employees pay 3 percent of their salaries to the social protection fund. These are huge amounts. It is impossible to create private pension funds with these figures.

Says the economist that, If private pension funds are established, the amount of payments should be regulated by individual agreements between the citizen and the fund: “In this case, there will be a need for certain changes in the legislation. In particular, payments related to the minimum wage of TIN employees in the private sector should be eliminated.

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