Accumulation of retirees can be transferred to State Oil Fund of Azerbaijan

Azerbaijan, Baku, Feb.10 / Trend A.Akhundov/ Part of the contributions for social insurance, which will be directed to the actual accumulation in Azerbaijan in future, can be transferred to the State Oil Fund administration of the country at the preliminary stage, Chairman of the State Social Protection Fund Salim Muslimov said the presentation on Pension insurance system in Azerbaijan in 2020: a look into the future, the results of actuarial studies on Friday. "The use of accumulation element of the pension system requires the study of issue on accumulated means administration in the financial markets. Particular role will belong to the State Oil Fund, as this organization has the most experience in the country in this field. We must take advantage of this experience. At the preliminary stage it would be appropriate to transfer these funds to the management of SOFAZ," Muslimov said. Involvement of Azerbaijan Mortgage Fund, which issue mortgage bonds and other instruments of the financial market in the country, is possible, Muslimov said "We also must consider compensation issues for the part of the income fund, which will aim to accumulate" Muslimov said. Forecasts for the development of the system before 2020 were prepared by the American company Overture Financial Ltd. The direction of social security contributions to the actual accumulation would generate additional revenues and increase pensions in Azerbaijan, the president of the company Mohammad Baki said. "The direction of three percent to a real accumulation increases the pension by 5 percent within 20 years and by 10 percent within 40 years," Baki said. Deductions, he said, could begin in 2015, which will amount about 190 million manat per year. Official exchange rate on Feb.10 is 0.7863 AZN/USD Do you have any feedback? Contact our journalist at agency@trend.az