Newly-appointed economy minister opposes mandatory funded pension system
25.02.2016,
17:23
The newly-appointed economy minister Artsvik Minasyan from the Armenian Revolutionary Federation/Dashnaktsutyun party has reconfirmed today his opposition to the mandatory funded pension system.
YEREVAN, February 25. /ARKA/. The newly-appointed economy minister Artsvik Minasyan from the Armenian Revolutionary Federation/Dashnaktsutyun party has reconfirmed today his opposition to the mandatory funded pension system.
"I still oppose the mandatory funded pension system. And it is not just my personal opinion, it is the opinion of my party,' he said after a Cabinet meeting today in response to a question from reporters about his stance on the funded pension system.
The new pension system took force on January 1, 2014 but was suspended shortly afterwards after being found contradicting to the Constitution. It 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.
Due to a series of protests on January 24, 2014 Armenia’s Constitutional Court suspended Article 76 of the pension law, which provided for penalties for failed or delayed pension tax payments, and the third paragraph of Article 86, which obligated employed citizens to choose a pension fund.
On April 2, the Constitutional Court ruled that some provisions of the new pension law were contradicting to the Constitution and voided them instructing the government to make changes. Eventually the government made it mandatory for public sector employees only. The law will become mandatory for private sector too after 2017. -0-
"I still oppose the mandatory funded pension system. And it is not just my personal opinion, it is the opinion of my party,' he said after a Cabinet meeting today in response to a question from reporters about his stance on the funded pension system.
The new pension system took force on January 1, 2014 but was suspended shortly afterwards after being found contradicting to the Constitution. It 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.
Due to a series of protests on January 24, 2014 Armenia’s Constitutional Court suspended Article 76 of the pension law, which provided for penalties for failed or delayed pension tax payments, and the third paragraph of Article 86, which obligated employed citizens to choose a pension fund.
On April 2, the Constitutional Court ruled that some provisions of the new pension law were contradicting to the Constitution and voided them instructing the government to make changes. Eventually the government made it mandatory for public sector employees only. The law will become mandatory for private sector too after 2017. -0-
