YEREVAN, January 24. /ARKA/. The compulsory fund pension system violates human rights depriving people of their right to choose, Aram Sargsyan, the leader of the Democratic Party of Armenia said Friday at a news conference.
He also said that this reform will drive young people from the country.
Manvel Badeyan, an MP from the Republican Party of Armenia, thinks otherwise. He doesn't find the obligatory component of the pension system anti-constitutional, since military service, secondary education and some kinds of insurance are compulsory as well.
The system was introduced on January 1, 2014. It applies to all the citizens born no earlier than on January 1, 1974. They will pay 5% of their salaries to their accumulative account every month, and the government will add another five percent, but no more than 25,000 drams ($61) to this amount every month, and no more than 300,000 ($740) for entrepreneurs.
The compulsory component of the pension system prompted backlash in the country. Protests are being staged in Yerevan. Nobody wants to commit 5% of their salaries to the government's trust, since people don't believe they will get their money back. -0----