Accumulative pension system institution can’t function in Armenia amid widespread public non-confidence in it

Accumulative pension system institution can’t function in Armenia amid widespread public non-confidence in it

YEREVAN, December 5. /ARKA/. The accumulative pension system institution can’t function in Armenia amid widespread public non-confidence in it, Vardan Bostanjyan, an economist, said at a news conference on Thursday. 

“I have always said that there can’t be such a thing like “obligatory-voluntary accumulative system,” he said. 

He remembered that when he was a member of parliament from Prosperous Armenia party, he not only voted against the pension reform, but also voiced his disagreement with the president.

Bostanjyan said that if the new system is introduced, at least $200 million will be accumulated every year. 

“We heard that this money will be used outside of the country, since we have no experience in managing such funds,” he said adding that this statement can prompt no other reactions but laugh.  

He stressed that this is a huge amount for Armenia, and the government should use it to the country’s advantage by creating new jobs and increasing revenue to have this money not only returned, but also producing interests. 

Besides, the expert pointed out that the continuing global financial crisis gives grounds for fearing that foreign companies may lose them, even in the event of excellent management. 

The Armenian government launched pension reforms on January 1, 2011 by introducing a voluntary accumulative pension system, and on January 1, 2014, the authorities want to introduce a mandatory accumulative pension system and oblige some 250,000 people born later than January 1974 to pay 5% of their salaries every month saying that another five percent, but no more than AMD 25,000 (AMD 300,000 for entrepreneurs) will be added by the government. ($1 – AMD 404.98). ---0-----

19:12 05.12.2013

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