Armenia’s president gives full support over government’s pension reform

Armenia’s president gives full support over government’s pension reform

YEREVAN, February 17. /ARKA/. Armenia’s president Serzh Sargsyan has fully supported the cabinet in implementing the funded pension system reform.

The president said he had been in the government since 1993 and all cabinets had been dealing with this problem.

Today’s cabinet has started solving the problem, Sargsyan said giving his full support over the decision.

This decision is really a necessity, he said.

Under the new pension plan that came into effect on January 1, 2014, all Armenian citizens born after January 1, 1974 will have to transfer five percent of their nominal salaries to their personal retirement savings fund, and another 5%, but no more than AMD 25,00 or $61 (300,000 drams or $740 for entrepreneurs), will be added by the government.

The president said pension reforms go smoothly nowhere, as they produce results in the long term whereas people want to have their situation improved straight away.

The second inconvenience for people, according to Sargsyan, is that 5% should be saved for getting it back multiplied in future.

The president said even those criticizing the reform say it is needed.

“We have been discussing this measure for long, it is a conscious step we took for the sake of Armenia’s future, for our children and grandchildren”, the president said.

Sargsian noted the new funded pension plan will also help boost economic development as it will create “long” and “cheap” money in the country.

The mandatory component of the new pension scheme has triggered public discontent. Representatives of political parties and non-governmental organizations do not believe increased pension tax will help ensure a fair pension and urge the authorities to give up the idea.
On January 24, the Armenian Constitutional Court suspended the enforcement of the new pension system and is now considering the matter. –0--

14:23 17.02.2014

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