Proposals for reforming the pension system were reviewed
Uzbekistan
President Shavkat Mirziyoyev reviewed a presentation of proposals for reforming the pension system.
Over the past ten years, pensions in our country have increased 3.3 times, and the minimum pension is set above the minimum consumer expenditure level. Before 2021, the pensions of 1.1 million citizens were less than 400,000 soums. Today, the minimum pension is 878,000 soums, and the minimum consumer expenditure level is 715,000 soums.
The presentation noted that in countries with developed funded pension systems, pension funds serve as a long-term resource for the economy.
According to calculations, with a properly organized pension system in our country, long-term resources can be attracted to the economy. This is confirmed by experts from the International Monetary Fund, the World Bank, the Asian Development Bank, and the International Labor Organization.
In this regard, the need to reform the pension system based on advanced international experience and develop funded, private, and corporate pension systems was emphasized.
Currently, 0.1 percent of citizens' salaries are transferred to their funded pension accounts. The annual return on these funds, at 10 percent, is almost half that of bank deposits.
In this regard, new mechanisms have been proposed to increase the attractiveness of this system and encourage active participation by the population.
Specifically, it is envisaged that if a citizen with a monthly salary of up to 7.6 million soums (15 basic pension units) transfers 5 percent of their income to a funded pension account, the state will contribute an additional 2.5 percent.
For citizens with monthly salaries over 7.6 million soums, it is proposed to transfer 1 percent of the social tax paid to their funded pension accounts.
Particular attention was paid to improving the pension calculation procedure.
Currently, pensions are calculated based on wages for any five years of work over the past ten years. Furthermore, wages exceeding 6 million soums are not included in the calculation. In some cases, this leads to a reduction in the average pension for citizens.
In this regard, it is proposed to increase the earnings period considered in pension calculations from 5 to 20 years, as well as to exclude certain periods of low income from the calculation.
Furthermore, starting in 2027, it is planned to increase the upper limit of wages considered in pension calculations from the current 6 million to 6.6 million soums.
According to calculations, this new procedure could increase the pension of newly retiring citizens by 8 percent.
The head of state emphasized that changes to the pension system affect the lives and futures of millions of citizens and emphasized the need to carefully assess the social and economic impact of each proposal.
The goal has been set to openly discuss these issues with the public, the general public, the media, and bloggers, as well as to clearly explain to citizens the goals and expected results of the reforms.
Responsible officials have been instructed to comprehensively study international experience and submit a draft law on the creation of private and corporate pension systems.
The presentation noted that in countries with developed funded pension systems, pension funds serve as a long-term resource for the economy.
According to calculations, with a properly organized pension system in our country, long-term resources can be attracted to the economy. This is confirmed by experts from the International Monetary Fund, the World Bank, the Asian Development Bank, and the International Labor Organization.
In this regard, the need to reform the pension system based on advanced international experience and develop funded, private, and corporate pension systems was emphasized.
Currently, 0.1 percent of citizens' salaries are transferred to their funded pension accounts. The annual return on these funds, at 10 percent, is almost half that of bank deposits.
In this regard, new mechanisms have been proposed to increase the attractiveness of this system and encourage active participation by the population.
Specifically, it is envisaged that if a citizen with a monthly salary of up to 7.6 million soums (15 basic pension units) transfers 5 percent of their income to a funded pension account, the state will contribute an additional 2.5 percent.
For citizens with monthly salaries over 7.6 million soums, it is proposed to transfer 1 percent of the social tax paid to their funded pension accounts.
Particular attention was paid to improving the pension calculation procedure.
Currently, pensions are calculated based on wages for any five years of work over the past ten years. Furthermore, wages exceeding 6 million soums are not included in the calculation. In some cases, this leads to a reduction in the average pension for citizens.
In this regard, it is proposed to increase the earnings period considered in pension calculations from 5 to 20 years, as well as to exclude certain periods of low income from the calculation.
Furthermore, starting in 2027, it is planned to increase the upper limit of wages considered in pension calculations from the current 6 million to 6.6 million soums.
According to calculations, this new procedure could increase the pension of newly retiring citizens by 8 percent.
The head of state emphasized that changes to the pension system affect the lives and futures of millions of citizens and emphasized the need to carefully assess the social and economic impact of each proposal.
The goal has been set to openly discuss these issues with the public, the general public, the media, and bloggers, as well as to clearly explain to citizens the goals and expected results of the reforms.
Responsible officials have been instructed to comprehensively study international experience and submit a draft law on the creation of private and corporate pension systems.
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