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Lack of stable and high-paying jobs impairs pension reform -
Prosperous Armenia Party
January 05, 2014 | 15:46
YEREVAN. - The absence of stable and high-paying jobs impairs the
pension reform in Armenia.
Non-pro-government Prosperous Armenia Party (PAP) MP Mikayel
Melkumyan, who is also Deputy Chair of the National Assembly Standing
Committee on Economic Affairs, told the above-said toArmenian
News-NEWS.am.
Melkumyan commented on the mandatory cumulative pension plan, which
came into force in Armenia on January 1, 2014.
As per the PAP MP, the number of working citizens in the country is
1.2 million. But 437,000 of them are farmers, who do not receive
salaries. Consequently, they cannot be included in the mandatory
cumulative pension plan.
Another 160,000 Armenian citizens work in the trade and the service sectors.
`But unstable, shadow employment, and such shadow wages are quire
considerable in trade,' Melkumyan noted.
Another 83,000 people work in industry, which is more or less stable.
The employment in the education sector can be considered relatively
the most stable. But there is a concern that he pension portfolio
might be formed irregularly and at a slow pace.
In addition, Mikayel Melkumyan stated that a sufficiently in-depth
economic analysis has not been conducted for at least the next several
years.
The new cumulative pension plan - which came into force on January 1,
2014 - is mandatory for those born in and after 1974 and voluntary for
those born before 1974. In line with this plan, 5 to 10 percent of the
monthly salaries in Armenia will be deducted and mandatorily be
allocated to cumulative pension funds; the latter will be reimbursed
as pensions once a person turns 63 years old.
News from Armenia - NEWS.am
From: A. Papazian
Prosperous Armenia Party
January 05, 2014 | 15:46
YEREVAN. - The absence of stable and high-paying jobs impairs the
pension reform in Armenia.
Non-pro-government Prosperous Armenia Party (PAP) MP Mikayel
Melkumyan, who is also Deputy Chair of the National Assembly Standing
Committee on Economic Affairs, told the above-said toArmenian
News-NEWS.am.
Melkumyan commented on the mandatory cumulative pension plan, which
came into force in Armenia on January 1, 2014.
As per the PAP MP, the number of working citizens in the country is
1.2 million. But 437,000 of them are farmers, who do not receive
salaries. Consequently, they cannot be included in the mandatory
cumulative pension plan.
Another 160,000 Armenian citizens work in the trade and the service sectors.
`But unstable, shadow employment, and such shadow wages are quire
considerable in trade,' Melkumyan noted.
Another 83,000 people work in industry, which is more or less stable.
The employment in the education sector can be considered relatively
the most stable. But there is a concern that he pension portfolio
might be formed irregularly and at a slow pace.
In addition, Mikayel Melkumyan stated that a sufficiently in-depth
economic analysis has not been conducted for at least the next several
years.
The new cumulative pension plan - which came into force on January 1,
2014 - is mandatory for those born in and after 1974 and voluntary for
those born before 1974. In line with this plan, 5 to 10 percent of the
monthly salaries in Armenia will be deducted and mandatorily be
allocated to cumulative pension funds; the latter will be reimbursed
as pensions once a person turns 63 years old.
News from Armenia - NEWS.am
From: A. Papazian