State Social Protection Fund (Azerbaijan)
Encyclopedia
The State Social Protection Fund of Azerbaijan Republic is a governmental agency within the Cabinet of Azerbaijan
in charge of regulating activities in the sector of social insurance and provision of pension
s to citizens of Azerbaijan Republic. The agency is headed by Salim Muslumov
.
In 1990, the Soviet Social Insurance Fund was founded and all enterprises, establishments, organizations, cooperatives, state farms, collective farms
and other organizations in the country had to make contributions to this fund. In 1991, by the decree of the Cabinet of Ministers of Azerbaijan SSR
, Social Insurance Fund of Azerbaijan SSR was established.
After restoration of independence of Azerbaijan in the second half of 1991, the Azerbaijani branch of the Soviet Pension Fund was transformed into the Pension Fund of Azerbaijan by the Presidential
Decree dated December 16, 1991. On June 1, 1992 the National Assembly of Azerbaijan
passed a law "On the normative allocations for the Social Insurance and Employment Fund", according to which the social insurance contributions would make 40% of the gross payroll. The Pension Fund was to receive 85% of that amount, while the remaining 15% went to the Social Insurance Fund.
In order to improve and modernize the social security system in the country, on September 30, 1992 President Abulfaz Elchibey issued a decree abolishing the Pension Fund and the Social Insurance Fund, and establishing the State Social Protection Fund in their place. Laws on social insurance and pension reforms in 1997 and 2001 further improved the social security system putting it in line with international standards. On August 4, 2003 another Presidential Decree "On measures for improving the state pension system in Azerbaijan Republic", the functions of the Ministry of Labor and Social Protection of Population of Azerbaijan Republic
on providing, financing and control over payments of pensions and additional benefits were passed to the State Social Protection Fund. Due to reforms related to the single insurance–pension system in the country through 2006, the servicemen of the Azerbaijan Armed Forces and persons with special ranks became covered by the mandatory social insurance.
According to the fund management, its revenue grew by 8.7% in the first half of 2010. The number of individual personal accounts of the insured is 1,732,215. In 2011, 97.2% (AZM
1.916 bn) out of its total expenditures in 2011 will include payments to the population.
Cabinet of Azerbaijan
The Cabinet of Azerbaijan is the chief executive body of the Republic of Azerbaijan.-The Executive Power:The President of the Republic of Azerbaijan is the head of state....
in charge of regulating activities in the sector of social insurance and provision of pension
Pension
In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...
s to citizens of Azerbaijan Republic. The agency is headed by Salim Muslumov
Salim Muslumov
Salim Muslumov Yanvar oglu is an Azerbaijani politician serving as the Chairman of the State Social Protection Fund of Azerbaijan Republic.-Early life:...
.
History
Throughout the Soviet rule, the social insurance and pensions to citizens in Azerbaijan were provided by the state. The Soviet system of pensions was based on no contribution principle with employed citizens not directly contributing to any funds, and the state issuing pensions directly from the state budget or state organizations.In 1990, the Soviet Social Insurance Fund was founded and all enterprises, establishments, organizations, cooperatives, state farms, collective farms
Kolkhoz
A kolkhoz , plural kolkhozy, was a form of collective farming in the Soviet Union that existed along with state farms . The word is a contraction of коллекти́вное хозя́йство, or "collective farm", while sovkhoz is a contraction of советское хозяйство...
and other organizations in the country had to make contributions to this fund. In 1991, by the decree of the Cabinet of Ministers of Azerbaijan SSR
Cabinet of Azerbaijan
The Cabinet of Azerbaijan is the chief executive body of the Republic of Azerbaijan.-The Executive Power:The President of the Republic of Azerbaijan is the head of state....
, Social Insurance Fund of Azerbaijan SSR was established.
After restoration of independence of Azerbaijan in the second half of 1991, the Azerbaijani branch of the Soviet Pension Fund was transformed into the Pension Fund of Azerbaijan by the Presidential
President of Azerbaijan
The country of Azerbaijan is a presidential republic, with the President of Azerbaijan as the head of state, and the Prime Minister of Azerbaijan as head of government...
Decree dated December 16, 1991. On June 1, 1992 the National Assembly of Azerbaijan
National Assembly of Azerbaijan
The National Assembly , also transliterated as Milli Majlis is the legislative branch of government in Azerbaijan. The unicameral National Assembly has 125 deputies: previously 100 members were elected for five-year terms in single-seat constituencies and 25 were members elected by proportional...
passed a law "On the normative allocations for the Social Insurance and Employment Fund", according to which the social insurance contributions would make 40% of the gross payroll. The Pension Fund was to receive 85% of that amount, while the remaining 15% went to the Social Insurance Fund.
In order to improve and modernize the social security system in the country, on September 30, 1992 President Abulfaz Elchibey issued a decree abolishing the Pension Fund and the Social Insurance Fund, and establishing the State Social Protection Fund in their place. Laws on social insurance and pension reforms in 1997 and 2001 further improved the social security system putting it in line with international standards. On August 4, 2003 another Presidential Decree "On measures for improving the state pension system in Azerbaijan Republic", the functions of the Ministry of Labor and Social Protection of Population of Azerbaijan Republic
Ministry of Labor and Social Protection of Population (Azerbaijan)
The Ministry of Labor and Social Protection of Population of Azerbaijan Republic is a governmental agency within the Cabinet of Azerbaijan in charge of regulating the labor markets and ensuring social protection of the population of Azerbaijan...
on providing, financing and control over payments of pensions and additional benefits were passed to the State Social Protection Fund. Due to reforms related to the single insurance–pension system in the country through 2006, the servicemen of the Azerbaijan Armed Forces and persons with special ranks became covered by the mandatory social insurance.
Structure
The fund is headed by its chairman and two deputies. It has a board of seven directors, which include the chairman, two deputies, the chairman of Nakhchivan Autonomous Republic of Azerbaijan, head of the central office of the fund, head of finance and budget department and the director of the department of the fund for work with the military personnel and persons with special ranks. Main functions of the agency are working out proposals on state policies in the field of social insurance and labor pensions; preparation of draft budget of the fund and ensure control over the approved budget; ensuring collection of mandatory state social insurance contributions from all entities and individuals engaged in work activity; enforcing control over implementation of legislative requirements in the process of mandatory social insurance; issuing pensions from the fund's budget; issuing benefits for temporary disability, pregnancy and child delivery, childcare limited to periods stipulated in legislation; issuing full or partial payments for spa treatments of the insured; issuing funeral grants, etc.According to the fund management, its revenue grew by 8.7% in the first half of 2010. The number of individual personal accounts of the insured is 1,732,215. In 2011, 97.2% (AZM
Azerbaijani manat
The Manat is the currency of Azerbaijan. It is subdivided into 100 qəpik. The word manat is borrowed from "moneta" which is pronounced as "maneta"...
1.916 bn) out of its total expenditures in 2011 will include payments to the population.