Armenia’s new pension system is completely ready for operation- minister

Armenia’s new pension system is completely ready for operation- minister

YEREVAN, January 9. / ARKA /. Armenia’s social security and labor minister Artem Asatryan said today the reformed national pension system is completely ready for operation.

The reformed pension system whereby the amount of pensions will depend on workers’ lifelong contributions to pension funds is effective from January 1. 

It requires that all Armenian citizens under the age of 40 pay more social security taxes. More precisely, all citizens born after January 1, 1974 will have to transfer five percent of their nominal salaries to their personal retirement savings funds. The government promises to transfer as much every month, but no more than 25,000 drams ($62). 

"The new system is fairer and the amount of pensions will depend on workers’ contributions," said Asatryan.

Commenting on the fact that many private companies said they would compensate for their workers’ pension contributions the minister said civil servants’ salaries will increase by 40 percent from July 1 and ‘therefore, they will have no problems to make their contributions.”

The new pension system made hundreds of people to demonstrate against it in recent weeks. The three opposition parties represented in the National Assembly- the Armenian Revolutionary Federation (Dashaktsutyun), the Armenian national Congress (ANC) and the Heritage as well as the Prosperous Armenia Party appealed to the Constitutional Court to scrap the ‘controversial’ reform of the national pension system. -0-

15:08 09.01.2014

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