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Kyrgyzstan Review, 10 years ago

[28.02.23] Pension Reforms Underway

Rosa Aknazarova, Minister for Labor and Social Protection, has told the journalists at the press conference with Kabar about reforming the system of pensions in the Republic.
According to her, two years ago the presidential decree has charged the Ministry with authority to conduct pension policy. Since then the Ministry specialists have analyzed the current pension legislature, studied the Russian and Kazakh experience of pension reforms, developed a concept of pension reforms for Kyrgyzstan that was approved by President Akaev on February 19, 2003.
Pension reforms will involve the following: improving legislative aspects, tariff and budget policy, individual registration system for those, insured, accumulation of pension savings, some organizational measures. The reform also implies the saving element for the future generation of pensioners. Transition to the savings pension system will be conducted step by step. The present day pensioners will receive money throughout the common distribution system (current pension system).
Employer pension tariffs have been lowered from 39% to 33 % in 2002. In the future, it is not the employer, but the employee who will make payments into the Pension Fund: the primary rate of -1% of the salary will in time go up to 10%.
There are certain priorities for the pension policy, such as indexation of pensions, providing social benefits to the people without the necessary work experience.
R. Akanzarova believes that the concept will be implemented in 2004.
Moya Stolitsa, February 28, 2003 

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