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Controversial pension reforms effective in Armenia as of Jan. 1
14:15 - 02.01.14
The widely disputed reforms aimed at introducing the funded pension
system in Armenia entered into effect on January 1.
The measure, which envisages 5%-10% deductions from monthly salaries
(depending on the amount earned), applies to all individuals born
after 1974. The deduced money is expected to be transferred to the
pension funds to be paid back as pension years later,
The law `On the Pension Accumulation' was adopted back in 2010, but
individuals could choose to benefit from that system on voluntary
basis.
Wide controversies arose after a government proposal to make the
pension accumulaiton compulsory, as many believed that salaries would
be reduced as a result. There were also suspicions that the money
might not be fully returned to the respective individuals after they
reached the pension age.
Civic activists protesting the measure launched a Facebook group which
attracted over 20,000 members. Its activists have organized different
protest actions since autumn to express their discontent.
At a working meeting in Armenia's Ministry of Economy on December 13,
President Serzh Sargsyan expressed a positive opinion of the proposed
reform.
Days latersom, members of the parliamentary opposition (Prosperous
Armenia, Armenian National Congress and Heritage) and the civic group
headed to the Constitutional Court in a protest march calling for
efforts to declare the compulsory component unconstitutional.
Their appeal was submitted to the Court in accordance with the
established procedures.
http://www.tert.am/en/news/2014/01/02/pension-reforms/
14:15 - 02.01.14
The widely disputed reforms aimed at introducing the funded pension
system in Armenia entered into effect on January 1.
The measure, which envisages 5%-10% deductions from monthly salaries
(depending on the amount earned), applies to all individuals born
after 1974. The deduced money is expected to be transferred to the
pension funds to be paid back as pension years later,
The law `On the Pension Accumulation' was adopted back in 2010, but
individuals could choose to benefit from that system on voluntary
basis.
Wide controversies arose after a government proposal to make the
pension accumulaiton compulsory, as many believed that salaries would
be reduced as a result. There were also suspicions that the money
might not be fully returned to the respective individuals after they
reached the pension age.
Civic activists protesting the measure launched a Facebook group which
attracted over 20,000 members. Its activists have organized different
protest actions since autumn to express their discontent.
At a working meeting in Armenia's Ministry of Economy on December 13,
President Serzh Sargsyan expressed a positive opinion of the proposed
reform.
Days latersom, members of the parliamentary opposition (Prosperous
Armenia, Armenian National Congress and Heritage) and the civic group
headed to the Constitutional Court in a protest march calling for
efforts to declare the compulsory component unconstitutional.
Their appeal was submitted to the Court in accordance with the
established procedures.
http://www.tert.am/en/news/2014/01/02/pension-reforms/