Armenian authorities try to dispel fears about pension reform – coalition MP

Armenian authorities try to dispel fears about pension reform – coalition MP

YEREVAN, February 18. /ARKA/. Armenia’s leadership is making efforts to dispel all doubts the population have about the pension reform, head of Orinats Yerkir faction Heghine Bisharyan told reporters Tuesday.

The protests over the new pension plan indicate democracy, she said.

“We do not see any shortcoming in the law now, but if anyone does – we are open for discussion”, she said. Some shortcomings may occur in implementation process – they will be corrected then, she said.

Bisharyan agreed with reporters there are many social problems in the country today. But risks need to be taken for having a more secure future, she said.

She said the new system will provide high pensions to today’s youth in several decades. But there may be a situation when people think about how to survive rather than about funds accumulated, she said.

Yet, Bisharyan said, these are emergencies, and people should be positive about the future.

The MP said members of her family have already joined the funded pension scheme. She said she may join it on volunteer basis as well.

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 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--

15:09 18.02.2014

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