Lawmaker criticizes authorities for failing ‘to explain mechanisms of new pension scheme to people before enforcing it”

YEREVAN, February 28. / ARKA /. An Armenian parliamentary minority lawmaker criticized today the authorities for their failure ‘to explain the mechanisms of the new pension scheme to the people before enforcing it from January this year.”

According to Tevan Poghosyan from the opposition Zharangutyun (Heritage) Party, broadcasting social advertising, explaining the ‘benefits’ of the new pensions scheme is not enough. 

‘I believe that the old pension system should be reformed, but it should be enforced in a way so that people believe it. This requires extensive discussions and deep analyses,’ he said.

Armenia’s Constitutional Court suspended last month 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-