Azerbaijan plans pension reforms for civil servants and military personnel

Azerbaijan plans a series of changes to its pension system. The reforms cover civil servants, military personnel in the Defence Ministry system, and people who receive pensions based on length of service. According to Day.Az, pensions for these groups are currently based mainly on salary or the last allowance.

Under the proposal, pension capital accumulated in an individual account would become the main basis for calculating pensions. Supplements would depend on administrative grade for civil servants, military rank for servicemen, and fixed amounts for specific posts for length-of-service pensioners. Pensions would also be assigned proactively, without applications, using data from electronic systems.

Indexation rules are also under review. Currently, indexation follows wage growth and consumer prices. The proposal would keep full indexation for lower pensions and capital but apply a different method to higher amounts. The stated goals are to strengthen insurance principles, raise low pensions and ensure long-term financial sustainability.