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IF CURRENT DEMOGRAPHIC TRENDS CONTINUE, BY 2050 PROPORTION BETWEEN EMPLOYEES AND RETIREES IN ARMENIA WILL BE ONE TO TWO
YEREVAN, March 28. / ARKA /. If the current demographic trends
continue, then by 2050 the proportion between employees and retirees
in Armenia will be one to two , according to Hakop Hakopyan, head of
an Armenian parliamentary committee on social affairs from the ruling
Republican Party of Armenia, who defended today at the Constitutional
Court the new pension scheme that took effect on January 1.
The constitutionality of the new pension law was challenged by three
opposition parties in the National Assembly -- the Armenian National
Congress, the Armenian Revolutionary Federation, and the Heritage Party
-- along with the usually pro-government Prosperous Armenia Party.
They took the case to the Constitutional Court that decided to suspend
Article 76 of the new pension law, which provides for penalties for
failed or delayed pension tax payments, and the third paragraph of
Article 86, which obligates employed citizens to choose a pension fund,
among other parts of the law. Today the Court began examining the case.
According to Hakobyan, the current pay-as-you-go pension system can
justify itself when the proportion between employee and retiree is 3
to 1. He argued that the current pension scheme is a source of social
injustice and that shifting to mandatory funded pension system allows
a decent old age.
The new pension system requires that all Armenian citizens born
after 1973 pay social security taxes equivalent to 5 percent of their
monthly wages, which will be matched and doubled by the government.
That money has to be deposited with private pension funds licensed
by the government late last December.
A recent Gallup International Association's public opinion survey
in Armenia revealed that over 88 % of respondents in Yerevan do not
support the new mandatory pension scheme. -0-
- See more at:
http://arka.am/en/news/society/if_current_demographic_trends_continue_by_2050_pro portion_between_employees_and_retirees_in_armenia_/#sthash.HFnGsA2H.dpuf
From: A. Papazian
YEREVAN, March 28. / ARKA /. If the current demographic trends
continue, then by 2050 the proportion between employees and retirees
in Armenia will be one to two , according to Hakop Hakopyan, head of
an Armenian parliamentary committee on social affairs from the ruling
Republican Party of Armenia, who defended today at the Constitutional
Court the new pension scheme that took effect on January 1.
The constitutionality of the new pension law was challenged by three
opposition parties in the National Assembly -- the Armenian National
Congress, the Armenian Revolutionary Federation, and the Heritage Party
-- along with the usually pro-government Prosperous Armenia Party.
They took the case to the Constitutional Court that decided to suspend
Article 76 of the new pension law, which provides for penalties for
failed or delayed pension tax payments, and the third paragraph of
Article 86, which obligates employed citizens to choose a pension fund,
among other parts of the law. Today the Court began examining the case.
According to Hakobyan, the current pay-as-you-go pension system can
justify itself when the proportion between employee and retiree is 3
to 1. He argued that the current pension scheme is a source of social
injustice and that shifting to mandatory funded pension system allows
a decent old age.
The new pension system requires that all Armenian citizens born
after 1973 pay social security taxes equivalent to 5 percent of their
monthly wages, which will be matched and doubled by the government.
That money has to be deposited with private pension funds licensed
by the government late last December.
A recent Gallup International Association's public opinion survey
in Armenia revealed that over 88 % of respondents in Yerevan do not
support the new mandatory pension scheme. -0-
- See more at:
http://arka.am/en/news/society/if_current_demographic_trends_continue_by_2050_pro portion_between_employees_and_retirees_in_armenia_/#sthash.HFnGsA2H.dpuf
From: A. Papazian