YEREVAN, April 1. / ARKA /. Armenia’s Constitutional Court will announce its ruling on the constitutionality of a controversial a controversial pension reform that took effect on January 1, on Wednesday, a spokesman for the highest court of the country, Hovannes Papikyan, told reporters today.
The constitutionality of the new pension law was challenged by three opposition parties in the National Assembly — the Armenian National Congress, the Armenian Revolutionary Federation, the Heritage Party and the Prosperous Armenia Party.
They took the case to the Constitutional Court that decided to suspend Article 76 of the new pension 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 began examining the case on March 28.
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.
A recent Gallup International Association’s public opinion survey in Armenia revealed that over 88 % of respondents in Yerevan do not support the new mandatory pension scheme. -0-