Draft resolution of President on pension reform published for discussion

Tashkent, Uzbekistan (UzDaily.com) -- A draft resolution of the President of Uzbekistan “On measures for further reforming the system of state pension provision of citizens” was published.

The document plans to approve the concept of reforming the system of state pension provision for citizens.

The concept envisages introduction of incentive mechanisms for citizen participation in the social insurance system.

The document proposes to increase the threshold size of the average monthly wage taken to calculate pensions from eight to tenfold of the minimal salary, providing for its spread to previously assigned pensions.

It is also proposed to increase the amount of pensions by providing a pension allowance equal to 10 percent of the minimum wage for each full year of work experience over 35 years for men and 30 years for women.

It is also planned to establish a pension allowance for women in the amount of 10 percent of the minimum wage, eligible for retirement at 54, but having completed a pension at a generally established age.

Uzbekistan within the framework of the concept intends to implement measures to increase and ensure social justice by granting the right to receive pensions for all working pensioners in full during their employment.

Also, a mechanism will be introduced for payment of benefits to persons with disabilities of the third group in the amount of the allowance provided to the elderly and disabled citizens who do not have the required length of service.

The document also proposes to grant the right to pay pensions to single pensioners who live in boarding schools for the elderly and disabled at a rate of 50 percent of the amount of the prescribed pension.

The concept also envisages introduction of incentive measures for the voluntary participation of citizens in the pension system, including the funded one.

In particular, the Government plans to grant the right to those, who reached the retirement age, but who do not have the necessary work experience, payment of insurance premiums in the amount of one minimum wage for each month (period) that is missing in calculating pensions.

It is also proposed to grant the right to working people to pay out of the income in the form of payment of additional insurance premiums for non-working family members at least one minimum wage for each month on a voluntary basis.

Uzbekistan plans to apply attractive schemes of intermediate bonus money payments, at the expense of transferred funds to a savings account of an individual.

Within the framework of the concept, it is planned to create a pension system that meets modern and international requirements.

In particular, Uzbekistan plans to gradually increase the minimum length of service for assigning pensions in increments of one year, starting in 2020 with bringing it to 10 years. It is also planned to increase the retirement age in stages.

Telegram
Subscribe to our Telegram channel to keep in touch with latest news. Open this link in any device and click Join button.