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Under Construction! |
The State Social Protection Fund of Azerbaijan Republic (SSPF) is a central executive body responsible for administration in the field of mandatory state social insurance, personal accounting of the insured.
Formation history of SSPF is directly related to the dynamics of economic relations as well as to the fundamental changes in social insurance and pension provision.
During USSR period social insurance and pension issues didn't develop independently but in the frame of the all-union legislation. In the Soviet pension provision system the required financial resources were drawn either from the state budget or spare funds of enterprises. In the 80s of the last century changes in the country's economic forms as well as transition of the majority of enterprises to self-financing principle complicated the implementation of the soviet financial pension model.
In 1990 the USSR Social Insurance Fund and consequently Social Insurance Fund of Azerbaijan SSR were established and a decision was taken that all the entities irrespective of their subordination pay contributions to the account of the Fund.
At the same time the USSR Pension Fund designed for financing the pension provision was established (15.08.1990) and Azerbaijan branch of the USSR Pension Fund was founded. The Pension Fund and the USSR Social Insurance Fund were charged to ensure the collection of insurance contributions.
Restoration of the state independence of Azerbaijan was followed by the reformation of the republic's state establishments. By the decree of the President of the Republic of Azerbaijan (16.12.1991) the Azerbaijan branch of the USSR Pension Fund was transformed into the Pension Fund of the Republic of Azerbaijan.
Starting with June 1st, 1992 85% of the total social insurance contributions were directed to the Pension Fund of the Republic and 15% to the Social Insurance Fund.
On September 30, 1992 on the basis of the Pension Fund and the Social Insurance Fund of the Republic of Azerbaijan the State Social Protection Fund (SSPF) of the Republic of Azerbaijan was established. SSPF was commissioned with the financing of pensions, benefits and payment charges as its fundamental duty.
In 1997 with the effectiveness of the Law of the Republic of Azerbaijan «On social insurance» the activities of the State Social Protection Fund were further improved as those of the body implementing the state administration in the field of mandatory state social insurance.
Since November 27, 2001 in connection with the effectiveness of the Law of the Republic of Azerbaijan «On individual accounting in the system of the state social insurance» the Fund started operating as a central executive body implementing individual accounting in the state social insurance system.
In August 2003 the functions in the field of pension-benefits were passed to SSPF. Thus, a functioning of the new insurance-pension body, provided for under the Pension Reform Concept, was organized.
On January 1, 2006 a shift to a new labour pensions system based on social insurance relations took place and SSPF started its functioning on this basis. At the same time effective of this date the administration of social payments made by the entities and enterprises at the expense of the mandatory state social insurance contributions have been passed to the State Social Protection Fund. Extending the coverage of the mandatory state social insurance to the military personnel and persons with special ranks and transition to providing the mentioned groups as well as civil servants with labour pensions since January 1, 2007 marked an end in establishing a common insurance-pension system meeting the international standards.
The ongoing insurance-pension reforms are highly estimated by the recognized international organizations. In May 2004 SSPF became an affiliate member of the International Social Security Association (ISSA) and in September of the same year – a Bureau member of this organization. In 2007 among the respective organizations of the developed European countries the Fund was elected a member of the Steering Committee for the newly established ISSA European Network.
Since 2003 SSPF has been intensively cooperating with the World Bank and UN Development Program. In June 2007 for the first time among CIS countries a large presentation of Azerbaijan’s insurance-pension model took place in the World Bank’s Headquarters and the ongoing reforms in the insurance-pension system of Azerbaijan and the model under establishment were recommended as exemplar for transition period.
At present SSPF has the following (administrative) structure: Central Office, Nakhchivan AR Office, 3 departments and 75 city (district) branches. In general, 2616 civil servants are employed with the Fund. 2384 out of them occupy administrative positions and 232 – support personnel. Based on current technology a local network was established in the Fund’s system, and workbenches by “1 employee-1 PC” principle meeting the modern standards were created. By the Decree of the President of the Republic of Azerbaijan # 2429 dated October 5, 2007 9 employees of SSPF were awarded medals for “Distinction in the civil service”.
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