Azerbaijan changes procedure for calculating labor pensions, cancels supplements to the insurance part of labor pensions

Azerbaijan changes procedure for calculating labor pensions, cancels supplements to the insurance part of labor pensions
  • Clock-gray 00:14
  • calendar-gray 22 December 2020

The procedure for calculating the size of the disability labor pension is changing in Azerbaijan. It is proposed to amend the law on labor pensions in this regard, APA reports.

At present, when calculating the insurance and funded parts of the disability labor pension, the number of months of the expected period of the pension payment is multiplied by the coefficient of the length of service. The insurance length ratio is defined as the ratio of the number of months of insurance length required for assigning a labor disability pension to 192.

Thus, when calculating the insurance and funded parts of the labor disability pension, the number of months of the expected period of pension payment will be multiplied by the insurance length coefficient, and the coefficient the insurance duration will be determined as the ratio of the number of months of insurance experience required for the appointment of a labor disability pension, not to 192, but to 200.

This will not apply in the following cases:

- For recalculation of disability and survivor pensions assigned before January 1, 2021;

-Persons who until January 1, 2021, were assigned social benefits for disability and for the loss of a breadwinner, when assigning a labor pension before this date.

At the same time, the law repeals Article 19, which provides for supplements to the insurance part of the labor pension. However, until the entry into force of this law, the accrued allowances continue to be paid from the state budget.

In addition, according to the current law, when assigning an old-age retirement pension to an insured person who reached the age provided for by this law in 2019-2020, he was accrued 25 years of insurance experience until January 1, 2006, which, starting from 2021, was to decrease annually by a year. According to the change, when assigning an old-age retirement pension to an insured person who reached the age stipulated by this law in 2019-2022, he was accrued 25 years of insurance experience until January 1, 2006, which, starting from 2023, should decrease annually by one year.

If adopted by the Milli Majlis, this law should enter into force on January 1, 2021

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