Funded pensions in Armenia to be fully insured- Fund Head
06.12.2012,
16:39
Funded pensions will be completely insured in Armenia, “Pension System Information Center” director Artak Ghazaryan told reporters on Thursday.
YEREVAN, December 6. /ARKA/. Funded pensions will be completely insured in Armenia, “Pension System Information Center” director Artak Ghazaryan told reporters on Thursday.
“Pensions will be 100% insured… There are quite serious control mechanisms for that,” Ghazaryan noted.
According to him, Central Depository of Armenia will be in charge of controlling individual pension accounts, and all the collected sums will be held there.
Ghazaryan added the managers of the funds will be constantly controlled by Armenia’s Central Bank.
He also noted the individual pension accounts for the citizens will be transparent and accessible. Management system will be transparent as well.
Pension reforms were kicked off in Armenia on January 1, 2011, by embedding voluntarily funded pension system. Mandatory funded pension system is expected to be introduced in the republic on January 1, 2014, and will refer to all the citizens born after January 1, 1974.
Due to the funded pension system retirees will be able to collect their pension amount. All workers, the self-employed and villagers of up to 40 years old will be able withdraw 5 % of their salary for the pension fund, another 5%, but not over 25,000 drams (300,000 for entrepreneurs), will be contributed by the state. ($1 – 407.36 drams). -0-
