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ARMENIA WILL EXERCISE ESTONIAN EXPERIENCE OF PENSION REFORMS
10:57, 28 November, 2012
YEREVAN, NOVEMBER 28, ARMENPRESS. Armenia will pass into the cumulative
pension system starting from January 1, 2014. As a model Armenia will
borrow the Estonian experience in the field, where this system has
been implemented about ten years ago. "Armenpress" had a conversation
with the General Executive Director of the Social Maintenance Service
of Estonia Livi Evarston.
- When was the cumulative pension system implemented in Estonia and
what stages did it pass through?
- Cumulative pension system has been implemented in Estonia in 2003
and the citizens made first payments that very year. In the first
stage it was implemented on a voluntary basis and was in force until
2008. But beginning from 2009 it became obligatory. Citizens born after
1983 have been involved in the obligatory cumulative pension system,
as to the citizens below the abovementioned age, they remained in
the state social system. Notwithstanding if citizens born before
1983 had a desire to be involved in the aforesaid system they have
been transferred to the cumulative pension system on a voluntary
basis. Anyway, voluntary system did not have much success in Estonia,
as only 6 percent of the citizens have been involved in the system.
- Was it necessary for Estonia to pass into cumulative pension system
instead of state pension system?
- First off all I would like to mention complicated demographic state
of Estonia. The number of working citizens decreased, while the number
of pensioners increased. Hence, the problem of paying pensions would
become rather difficult for the next generations. That is why this
was an imperative of time.
- Who is in charge for the surveillance of the pension fund in Estonia?
- Generally private companies are engaged in the administration
of pension funds. As to the surveillance it is carried out by the
Ministry of Finance. It is in charge for the collection, analysis
and introduction of the financial information to the public. In case
of occurrence of a number of problems the Ministry of Finance is
authorized to interfere in the activity of the pension funds. (THE
FULL VERSION OF THE INTERVIEW IS AVAILABLE IN ARMENIAN).
The interview by Artak Markosyan
From: Baghdasarian
10:57, 28 November, 2012
YEREVAN, NOVEMBER 28, ARMENPRESS. Armenia will pass into the cumulative
pension system starting from January 1, 2014. As a model Armenia will
borrow the Estonian experience in the field, where this system has
been implemented about ten years ago. "Armenpress" had a conversation
with the General Executive Director of the Social Maintenance Service
of Estonia Livi Evarston.
- When was the cumulative pension system implemented in Estonia and
what stages did it pass through?
- Cumulative pension system has been implemented in Estonia in 2003
and the citizens made first payments that very year. In the first
stage it was implemented on a voluntary basis and was in force until
2008. But beginning from 2009 it became obligatory. Citizens born after
1983 have been involved in the obligatory cumulative pension system,
as to the citizens below the abovementioned age, they remained in
the state social system. Notwithstanding if citizens born before
1983 had a desire to be involved in the aforesaid system they have
been transferred to the cumulative pension system on a voluntary
basis. Anyway, voluntary system did not have much success in Estonia,
as only 6 percent of the citizens have been involved in the system.
- Was it necessary for Estonia to pass into cumulative pension system
instead of state pension system?
- First off all I would like to mention complicated demographic state
of Estonia. The number of working citizens decreased, while the number
of pensioners increased. Hence, the problem of paying pensions would
become rather difficult for the next generations. That is why this
was an imperative of time.
- Who is in charge for the surveillance of the pension fund in Estonia?
- Generally private companies are engaged in the administration
of pension funds. As to the surveillance it is carried out by the
Ministry of Finance. It is in charge for the collection, analysis
and introduction of the financial information to the public. In case
of occurrence of a number of problems the Ministry of Finance is
authorized to interfere in the activity of the pension funds. (THE
FULL VERSION OF THE INTERVIEW IS AVAILABLE IN ARMENIAN).
The interview by Artak Markosyan
From: Baghdasarian