Head of Azerbaijani state social protection urges private pension funds

Azerbaijan needs private pension funds, Trend reports, citing the head of the Azerbaijani state fund of social protection Salim Muslimov, at the pension financing presentation held by the fund and German pension insurance experts.

The new pension insurance system will consist of three stages: obligatory pension insurance carried out by the government, investment stage of the insurance and private pension fund establishment.

The second and third stages have risks. Germany lost 40% on the third stage due to the economic recession. However, the realization of all three stages will increase the pension sum, Muslimov said. He also noted that today the most important issue is obligatory contributions.

The presentation on middle-term and long-term pensions is held in Baku on October 13-14. Salim Muslimov met German officials to negotiate cooperation between the state fund of social protection and German management of pension insurance.