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PENSION LAW CONTROVERSY: AMENDMENTS TO REFORM PACKAGE STIR MORE DEBATE
Society | 20.06.14 | 15:21
By Gayane Lazarian
ArmeniaNow reporter
Discussions of amendments to the controversial law on funded pensions
in parliament were taking place under "extraordinary" conditions this
week. The opposition chose the tactics of scuttling the proceedings
by trying to "kill" the quorum, and it managed to do so on several
occasions. Still, the parliament majority on Friday looked set to
have the amendments passed in the ballot.
By the amendments the government is trying to solve various problems
brought forth both by the Constitutional Court and by the public.
Henceforth, instead of the pension fund there will be a social payment
which is a mandatory payment made to the state budget.
Minister of Social Affairs Artem Asatryan stated that the rate of the
social payment is suggested to be five percent. It will be mandatory
for public sector employees, and the private sector will have an
opportunity to voluntarily participate in the system till 2017 (the
compulsory norm may be introduced for them from July 1, 2017). He gave
assurances that state sector employees will not suffer financially
because from July of this year their salaries will be increased.
Starting from July 1 the government raises the average salaries of
200,000 state employees: in the healthcare sector for 21 percent,
in the field of education - 13.9 percent, in the field of culture
- 29.6 percent, in the field of social protection - 21.6 percent,
in the field of state administration - 47 percent, in the field of
civil service - 68 percent.
"And in this case considering that salaries rise and the consumption or
owned income is untouched, it is suggested including state employees
in the first stage. For those born after January 1, 1974 it is
suggested participating in the system voluntarily for three years,"
Asatryan said.
Opposition Armenian National Congress (ANC) faction head Levon
Zurabyan said that the bill is anti-constitutional because there
appears discrimination between those born before and after 1974.
"With this new package the government creates discrimination also
between state and private sector employees, as well as for those born
in 1996 because the social payment will be applied to them as well,"
Zurabyan said.
Parallel to parliamentary discussions a few dozens of young activists
from Dem.am civic campaign gathered in front of the parliament entrance
on Demirchyan street, expressing their discontent against the new
bill suggested by the government, stating that thus the pension fund
turns into a taxation system.
Arsen Manukyan, a member of Dem.am, said that the mandatory component
of the pension reform applies only to state employees, but it is not
clear why a component, considered anti-constitutional, must apply
even to state employees.
The campaign members condemn the working ethic of the new government
- developing a new bill without discussions, without public opinion,
without considering the employees' will.
A member of the campaign, Gevorg Gorgisyan, mentions that the
government did not consider their suggestions, whilst the prime
minister had promised to listen to their suggestions.
"Our suggestion was that participation in the system must be
exceptionally voluntary. Any member of the system may withdraw
from it at any time, applying the system must not mandatorily add
the financial burden of the employer and/or the employee. This new
bill is again anti-constitutional. If it is accepted and ratified,
our eight-month fight and the public will be ignored," he said.
Dem.am members urged the public, especially those in the state sector,
to stand up and demand from the Parliament not to approve the bill.
http://armenianow.com/society/55449/armenia_pension_reform_debate
Society | 20.06.14 | 15:21
By Gayane Lazarian
ArmeniaNow reporter
Discussions of amendments to the controversial law on funded pensions
in parliament were taking place under "extraordinary" conditions this
week. The opposition chose the tactics of scuttling the proceedings
by trying to "kill" the quorum, and it managed to do so on several
occasions. Still, the parliament majority on Friday looked set to
have the amendments passed in the ballot.
By the amendments the government is trying to solve various problems
brought forth both by the Constitutional Court and by the public.
Henceforth, instead of the pension fund there will be a social payment
which is a mandatory payment made to the state budget.
Minister of Social Affairs Artem Asatryan stated that the rate of the
social payment is suggested to be five percent. It will be mandatory
for public sector employees, and the private sector will have an
opportunity to voluntarily participate in the system till 2017 (the
compulsory norm may be introduced for them from July 1, 2017). He gave
assurances that state sector employees will not suffer financially
because from July of this year their salaries will be increased.
Starting from July 1 the government raises the average salaries of
200,000 state employees: in the healthcare sector for 21 percent,
in the field of education - 13.9 percent, in the field of culture
- 29.6 percent, in the field of social protection - 21.6 percent,
in the field of state administration - 47 percent, in the field of
civil service - 68 percent.
"And in this case considering that salaries rise and the consumption or
owned income is untouched, it is suggested including state employees
in the first stage. For those born after January 1, 1974 it is
suggested participating in the system voluntarily for three years,"
Asatryan said.
Opposition Armenian National Congress (ANC) faction head Levon
Zurabyan said that the bill is anti-constitutional because there
appears discrimination between those born before and after 1974.
"With this new package the government creates discrimination also
between state and private sector employees, as well as for those born
in 1996 because the social payment will be applied to them as well,"
Zurabyan said.
Parallel to parliamentary discussions a few dozens of young activists
from Dem.am civic campaign gathered in front of the parliament entrance
on Demirchyan street, expressing their discontent against the new
bill suggested by the government, stating that thus the pension fund
turns into a taxation system.
Arsen Manukyan, a member of Dem.am, said that the mandatory component
of the pension reform applies only to state employees, but it is not
clear why a component, considered anti-constitutional, must apply
even to state employees.
The campaign members condemn the working ethic of the new government
- developing a new bill without discussions, without public opinion,
without considering the employees' will.
A member of the campaign, Gevorg Gorgisyan, mentions that the
government did not consider their suggestions, whilst the prime
minister had promised to listen to their suggestions.
"Our suggestion was that participation in the system must be
exceptionally voluntary. Any member of the system may withdraw
from it at any time, applying the system must not mandatorily add
the financial burden of the employer and/or the employee. This new
bill is again anti-constitutional. If it is accepted and ratified,
our eight-month fight and the public will be ignored," he said.
Dem.am members urged the public, especially those in the state sector,
to stand up and demand from the Parliament not to approve the bill.
http://armenianow.com/society/55449/armenia_pension_reform_debate