ORDER OF THE GOVERNMENT OF THE REPUBLIC OF TAJIKISTAN

of July 2, 1998 No. 225

About approval of the Concept of reforming of social security system in the Republic of Tajikistan

The government of the Republic of Tajikistan decides:

1. Approve the enclosed Concept of reforming of social security system in the Republic of Tajikistan.

2. Approve the enclosed structure of the Commission coordinating development of the Program for implementation of the Concept of reforming of social security system in the Republic of Tajikistan.

To submit to the commission till October 1, 1998 for consideration of the Government the Program for implementation of the Concept of reforming of social security system in the Republic of Tajikistan.

Approved by the Order of the Government of the Republic of Tajikistan of July 2, 1998 No. 225

The concept of reforming of social security system in the Republic of Tajikistan

1. Introduction

Tajikistan, as well as many other former federal republics, endures one of the most difficult periods of the history today.

The problem of material security of worthy old age is urgent for all countries of the world including for Tajikistan.

In article 1 of the Constitution of the Republic of Tajikistan it is determined that Tajikistan the social state which policy is directed to creation of the conditions providing worthy life and free development of the person. Proceeding from it, article 39 of the Constitution of the Republic of Tajikistan to citizens, living in the Republic of Tajikistan, guarantees: "... social security in old age, in cases of disease, disability, disability, loss of the supporter and in other cases determined by the law".

For this purpose by the Government the Program of economic transformations of the Republic of Tajikistan for 1995 - 2000 is developed. In this Program the essential attention is paid to social policy. However it should be noted that without reform of social security system the provision in the social sphere cannot be changed. The reforms undertaken now in the republic, implementation of the market relations are integrated to crisis processes and sharp fall of production. In the conditions of transition to the market deficit of means constantly increases. Therefore the social strategy of the state is temporarily aimed at increase in financial provision, and mainly at redistribution of the available means for the purpose of rendering the public assistance to especially needing categories of the population.

The offered Concept determines the main strategic directions of reform of social security.

2. General provisions

Now in the world various systems of provision of pensions are effective. The most widespread of them is the obligatory system of provision of pensions which is under construction on the principle of redistribution.

Old-age pensions and in case of loss of the supporter have in the basis the long-term social contract between the active population, on the one hand, and those who owing to the old age cannot work more, but who in last itself financially supported elderly people, on the other hand. This contract can wear the most various uniforms which both are obviously expressed and hidden, and for today there is no single formula or any comprehensive and universal recipe for all countries and times. However the main sense is that the active population performs duty financially to support the aged parents, and then, in turn, they will be helped by their own children too. This concept is old as the world, and is applied already many millennia, but characteristic feature of the last time is process of depersonalization of the relations. In developed countries for many decades people of advanced age depended not on financial support of own children and on general support of organizations of provision of pensions and all society in general.

Before system of provision of pensions in all countries there are three main goals:

- protection against poverty in case of approach of old age;

- provision of the income upon completion of labor activity, the size which usually constitutes the certain amount pro rata to the amount of the earnings paid just before retirement;

- protection of this income from the subsequent decrease in real level of living as a result of inflation.

3. The operating system of provision of pensions and its problem

Reform of system of social protection of the population actually began since 1993 in close connection with the radical changes happening in all spheres of life of the country. The new legal acts regulating the mechanism of provision of pensions and social protection of citizens were adopted, the structure of the Ministry of social protection of the population of the Republic of Tajikistan is ordered, duplicative departments are liquidated, the Tajik research institution of examination and recovery of working ability of disabled people (Tajik of NIIEVTIN) is created.

The Law of the Republic of Tajikistan adopted in June, 1993 "About provision of pensions of citizens of the Republic of Tajikistan" is oriented to the principle of solidarity of generations" and not expected the economic crisis which struck economy of the republic and its financial system therefore the state was not able to fulfill the pension provision obligations, especially concerning indexation of pensions which receivers with respect thereto appeared below the poverty line: acceptance of number of amendments, changes, amendments in the Law requires on places to make permanent recalculations which maintenance of life of pensioners do not yeild tangible results. For very short interval of time they pass into section of minimum again.

The conditions which developed in the country convince of need of carrying out authentic reform of social security on which skillful carrying out the personal liability of able-bodied citizens for the provision of pensions in old age will depend in many respects.

Temporary objective difficulties of social and political and financial and economic nature significantly influenced provision of pensions that was expressed in some violation of system of social protection.

The crisis phenomena in economy do not allow the state to fulfill fully the pension provision obligations and force to look for other, more optimum ways which solution is determined by the Labor Code of the Republic of Tajikistan (to the Art. 215) accepted on May 15, 1997 No. 417 and the Law of the Republic of Tajikistan "About the National social insurance" (on December 13, 1997 No. 517). The most urgent, in this plan it is necessary to consider:

- tendency of sharp gap between the sizes of pensions from 1000 to 50000 and more rubles;

- lack of the single automated system of preparation of pension documents, office equipment and the necessary equipment for the mechanized processing of pension process;

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