Document from CIS Legislation database © 2003-2023 SojuzPravoInform LLC

ORDER OF THE PRESIDENT OF THE AZERBAIJAN REPUBLIC

of November 4, 2014 No. 827

About approval "Concepts of reform of system of provision of pensions in the Azerbaijan Republic in 2014-2020"

(as amended on 07-08-2017)

Being guided by Item 32 of article 109 of the Constitution of the Azerbaijan Republic, for the purpose of accounting of the international tendencies of development in forming of system of provision of pensions in the Azerbaijan Republic and reductions of provision of pensions in compliance with constantly updated modern requirements, for the long-term period with use of experience of developed countries in this area I decide achievements of reliable social protection of pensioners:

1. Approve "The concept of reform of system of provision of pensions in the Azerbaijan Republic in 2014-2020" it (is applied).

2. Charge to the Cabinet of Ministers of the Azerbaijan Republic:

2.1. exercise control over the implementation of the Concept noted regarding 1 this Order and to regularly inform on it the President of the Azerbaijan Republic;

2.2. resolve other issues following from this Order.

President of the Azerbaijan Republic

Ilham Aliyev

Approved by the Order of the President of the Azerbaijan Republic of November 4, 2014

The concept of reform of system of provision of pensions in the Azerbaijan Republic in 2014-2020

1. Introduction

The system of provision of pensions is one of the major and main directions of the policy of social protection performed by the state. In the first years of finding of independence because of poor development of national economy, shortage of financial resources there were difficulties in system of provision of pensions. Besides, serious discrepancy of the system of provision of pensions which was not relying on the social insurance which remained from Soviet period to market economy was the main and common problem for the Azerbaijan Republic.

Since 1993 in the Azerbaijan Republic political stability was approved thanks to what the reached sustainable economic development turned into major factor of strengthening of social protection of the population. During this period reorganization of system of provision of pensions of the country according to the best international practices was determined as one of strategic directions of social policy.

As a result of performed for the expired years of reforms in Azerbaijan creation of system of provision of pensions, highly effective from the modern and social points of view, was reached. As a result social welfare of the population of retirement age considerably improved, poverty in this layer, one may say, is completely eliminated. Purposeful measures in the field of social protection of the population allowed to increase in 2006-2013 the average monthly size of work pensions in 5,7 of time and to occupy, thus, to our country on this indicator one of the advanced line items in former Soviet geographical Union.

At the same time, need of reduction of system of provision of pensions in compliance with constantly updated modern requirements causes continuation and today in this area of the reforms answering to new challenges. Need of enhancement of the model of provision of pensions operating in Azerbaijan taking into account the best practices reached in the international practice, first of all, is connected with successful completion of transition to market economy in our country and creation of the system allowing to perform by means of more committed mechanisms provision of pensions of citizens in the plane of new realities. The objects set in the Concept of development "Azerbaijan 2020: prospection", create favorable circumstances for tracing of new prospects and implementation of strategy of changes according to the best international practices, relying on success achieved by our country in the social sphere in general including in the field of provision of pensions of citizens.

"The concept of reform of system of provision of pensions in the Azerbaijan Republic in 2014-2020" establishes bases of state policy in the field of provision of pensions during this period.

2. International experience in area of provision of pensions

2.1. The corresponding concepts and recommendations of the International Labour Organization, and also Council of Europe in the field of social security, as a rule, not only provide old-age provision, disability and in connection with loss of the supporter, but also rely on mechanisms of realization of these payments by means of compulsory social insurance. At the same time in many countries along with system of compulsory social insurance also voluntary pension insurance develops that plays important role in additional pension provision of the population.

2.2. In the international practice financing of pensions is performed on the basis of the pension systems consisting of models of solidarity, accumulating, and also their set. Now the system of solidarity provides financing of pensions of the senior generation generally at the expense of the social insurance premiums paid by the working persons. Unlike it, in system of collection the fees of social insurance paid now by the working persons in obligatory or voluntary procedure do not go to the current pension expenses and are controlled, being directed to various investing programs for the purpose of receipt of additional income.

2.3. In the advanced countries the systems of provision of pensions relying on connection of these models of financing in various ratios and forms are most widespread. In most cases in the state systems of provision of pensions applied without fail and financed generally by the principle of solidarity the systems of provision of pensions acting on the basis of models of financing for the accumulation account are in addition used.

2.4. Now under the influence of global economic and demographic factors in the world of tendency of development of the sphere of provision of pensions in general are determined by the measures taken in the field of reliable ensuring financial stability of this sphere.

2.5. Serious problems which meet in connection with depreciation of means in the conditions of global financial crisis made active tendencies, on the one hand, strengthenings of models of solidarity, and with another - preference returns implementation of participation of citizens in schemes of accumulative provision of pensions has more not without fail, and on voluntary basis.

2.6. In practice of many advanced countries enhancement of systems of the state provision of pensions constructed on the basis of the principle of solidarity is performed, mainly by expansion of use of the principles of insurance. Strengthening of the principles of insurance in the state provision of pensions is connected with the reforming measures providing the balanced stability of the financial resources which are saved up as a result of collected pension liabilities and also respect for actuarial justice (proportionality of the fees of social insurance paid by each participant, to the size of the pension received by it).

Warning!!!

This is not a full text of document! Document shown in Demo mode!

If you have active License, please Login, or get License for Full Access.

With Full access you can get: full text of document, original text of document in Russian, attachments (if exist) and see History and Statistics of your work.

Get License for Full Access Now

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

Effectively work with search system

Database include more 50000 documents. You can find needed documents using search system. For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.
More about search system

Get help

If you cannot find the required document, or you do not know where to begin, go to Help section.

In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.

You also may open the section Frequently asked questions. This section provides answers to questions set by users.

Search engine created by SojuzPravoInform LLC. UI/UX design by Intelliants.