AZE.US
Azerbaijan is considering a proposal that would allow part of a deceased citizen’s accumulated pension capital to be transferred to their heirs.
MP Vugar Bayramov said several proposals concerning the use of pension savings after a person’s death are being discussed by the Milli Majlis Committee on Labor and Social Policy.
One option would permit a portion of the deceased person’s pension capital to be credited to an heir’s account.
Bayramov stressed that the proposal requires a detailed financial assessment. Any new mechanism would have to balance the interests of bereaved families with the long-term financial stability of Azerbaijan’s State Social Protection Fund.
Another proposal calls for introducing the concept of “average pension capital” into Azerbaijani legislation alongside the existing minimum pension capital requirement.
Under the proposed model, citizens who have accumulated more than the minimum and average thresholds could be allowed to use part of the additional funds for certain legally approved purposes before reaching retirement age.
Bayramov said expanding access to pension capital could also encourage more people to seek formal employment. Pension contributions would then serve not only as a source of retirement income but could also provide financial support to a worker’s family and children in the event of their death.
The initiative remains under discussion. The amount that could be inherited, eligibility requirements and a possible implementation date have not yet been determined.
AZE.US