YEREVAN, January 29. / ARKA /. Armenia’s finance minister David Sargsyan said today he has already chosen a private pension fund to deposit his pension contributions with.
"I have already chosen a manager to run my pension savings, but will not announce its name not to advertise it. Regarding the type of deposit I have chosen the one called "Balanced” which supposes a parity ratio of debt and equity instruments," said Sargsyan. He added that many of his friends have also chosen their pension fund managers.
Last Friday Armenia’s Constitutional Court suspended some provisions of the new, controversial law that aims to reform the country’s pension system to launch a detailed inquiry into the constitutionality of the law.
The highest court of the country suspended Article 76 of the new law, which provides for penalties for failed or delayed pension tax payments, and the third paragraph of Article 86, which obligates employed citizens to choose a pension fund, among other parts of the law. The Court says it will conclude the inquiry on March 28, 2014.
The constitutionality of the law was challenged by three opposition parties in the National Assembly — the Armenian National Congress, the Armenian Revolutionary Federation, and the Heritage Party — along with the usually pro-government Prosperous Armenia Party.
The new pension system requires that all Armenian citizens born after 1973 pay social security taxes equivalent to 5 percent of their monthly wages, which will be matched and doubled by the government. That money has to be deposited with private pension funds licensed by the government late last December. -0-