YEREVAN, April 2. / ARKA /. Following the decision of the Constitutional Court of Armenia to invalidate a set of provisions of the new pension law the government said it will work out its plan of actions regarding the pension reform only after a detailed analysis of the Court’s decision.
"The Constitutional Court argues that the experience of more than 50 countries shows that the introduction of funded pension system increases the stability of the country and the welfare of the people. At the same time, it has ruled that the Armenian pension law has some shortcomings which should be eliminated before the 30th of September. The government will carry on with this fundamental reform aimed at improving the welfare of the people," it said in a statement.
The Constitutional Court ruled today that several clauses in the law "which impose certain obligations to the citizens limit some of their rights guaranteed by the Constitution."
The court temporarily had suspended the law in January, days after it came into force, after thousands protested against it in Yerevan.
According to the new law, citizens born after January 1, 1974, were to contribute 5 percent of their monthly salaries to a pension fund and the government was to match that contribution with another 5 percent, not to exceed 25,000 drams ($61) per month.
According to a recent public opinion survey conducted by Gallup International Association, more than 88% of respondents in Yerevan were against the mandatory funded pension system. -0 -