Two Draft Decisions on Approval of Pension Reform To Be Submitted

[Kharatian Ani]

TWO DRAFT DECISIONS ON APPROVAL OF PENSION REFORM STRATEGY TO BE
SUBMITTED TO ARMENIAN GOVERNMENT

YEREVAN, APRIL 7, NOYAN TAPAN. A draft decision on approval of the
pension reform strategy in Armenia must be submitted to the RA
government until July 20. In accordance with reforms, a mixed system
of pension security shall be introduced in the country, with the
pension system being composed of three components: state, compulsory
cumulative and voluntary pension insurance. Vazgen Khachikian,
Chairman of the RA State Social Insurance Fund, told NT correspondent
that two versions of the draft decision are being developed - one by
the Central Bank of Armenia (CBA), and another - by the Ministry of
Labor and Social Issues. According to the ministry's draft, it is
necessary to introduce a conditional cumulative system in Armenia and
then gradually shift to a cumulative or mostly cumulative
system. Under the draft developed by the CBA, the pension reforms will
not be complete without the prevalence of the cumulative element. In
the opinion of V. Khachikian, the CBA proposal presupposes a more
rapid process of reforms, while the ministry's version - a more
cautious one.