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FORMER MP SAYS PENSION REFORM WILL NOT WORK IN A COUNTRY PLAGUED WITH DIRE PROBLEMS
YEREVAN, January 17. / ARKA /. A former Armenian parliament member
Vardan Bostanjyan questioned today the ability of the government to
handle the so-called funded mandatory pension system arguing that
it will not work in a country plagued with dire social and economic
problems.
The reformed pension system whereby the amount of pensions will depend
on workers' lifelong contributions to pension funds is effective from
January 1. It requires that all Armenian citizens under the age of
40 pay more social security taxes.
More precisely, all citizens born after January 1, 1974 will have
to transfer five percent of their nominal salaries to their personal
retirement savings funds. The government promises to transfer as much
every month, but no more than 25,000 drams ($62).
"The so-called pension reform is absurd, illogical in essence and
can not work in the current socio-economic situation,' he said to a
news conference.
The reform caused a wave of protests of many Armenians, largely young
highly-paid professionals.
The protesters say they do not want to trust 5 % of their salaries
to the government, because they are not sure they will get it back
upon reaching the retirement age of 63.
The three opposition parties represented in the National Assembly-
the Armenian Revolutionary Federation (Dashaktsutyun), the Armenian
national Congress (ANC) and the Heritage as well as the Prosperous
Armenia Party appealed to the Constitutional Court to scrap the
'controversial' reform of the national pension system. -0-
- See more at:
http://arka.am/en/news/economy/former_mp_says_pension_reform_will_not_work_in_a_c ountry_plagued_with_dire_problems/#sthash.pYfyE0hj.dpuf
From: Emil Lazarian | Ararat NewsPress
YEREVAN, January 17. / ARKA /. A former Armenian parliament member
Vardan Bostanjyan questioned today the ability of the government to
handle the so-called funded mandatory pension system arguing that
it will not work in a country plagued with dire social and economic
problems.
The reformed pension system whereby the amount of pensions will depend
on workers' lifelong contributions to pension funds is effective from
January 1. It requires that all Armenian citizens under the age of
40 pay more social security taxes.
More precisely, all citizens born after January 1, 1974 will have
to transfer five percent of their nominal salaries to their personal
retirement savings funds. The government promises to transfer as much
every month, but no more than 25,000 drams ($62).
"The so-called pension reform is absurd, illogical in essence and
can not work in the current socio-economic situation,' he said to a
news conference.
The reform caused a wave of protests of many Armenians, largely young
highly-paid professionals.
The protesters say they do not want to trust 5 % of their salaries
to the government, because they are not sure they will get it back
upon reaching the retirement age of 63.
The three opposition parties represented in the National Assembly-
the Armenian Revolutionary Federation (Dashaktsutyun), the Armenian
national Congress (ANC) and the Heritage as well as the Prosperous
Armenia Party appealed to the Constitutional Court to scrap the
'controversial' reform of the national pension system. -0-
- See more at:
http://arka.am/en/news/economy/former_mp_says_pension_reform_will_not_work_in_a_c ountry_plagued_with_dire_problems/#sthash.pYfyE0hj.dpuf
From: Emil Lazarian | Ararat NewsPress