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NEWSPAPER: NEW SCANDAL BREWING AROUND FUNDED PENSION IN ARMENIA
by Alexandr Avanesov
Friday, October 31, 12:48
A new scandal is brewing around the funded pension system that was
introduced in Armenia not so long ago, a local "Zhamanak" ("Time")
newspaper writes.
According to the source, the Government has not yet transferred the
pension payments charged from the monthly salaries of the citizens to
their pension accounts. "According to the Law on the Funded Pension
that was amended following a relevant decision of the Constitutional
Court, the pension payments that are charged from the salaries on a
monthly basis must be transferred to the state budget and then to the
pension accounts of the citizens. Since April the amounts that have
been charged from the citizens and transferred to the budget have
not be transferred to the pensions funds or the pension accounts of
the citizens yet," the paper writes.
To recall, the mandatory funded pension system was introduced in
Armenia from July 1 2014 for the employees of the government sector.
For the private sector, the system will be gradually introduced
on a voluntary basis within three years. This provision meets
the requirements of the Constitutional Court. Pension payments are
undergoing changes and a social-purpose monthly payment in the amount
of 5% of the salary is suggested. This will apply top the employees
whose salary does not exceed 500,000 drams. For the employees with
higher salary, the payment will make up 25,000 drams.
The mandatory funded pension system applies to the citizens born
after Jan 1 1974 (the citizens below 40). 5% of their salaries will be
transferred to their personal accumulative accounts. The government
will transfer a similar amount (but no more than 25,000 drams). In
November 2013 the Armenian Central Bank (CB) registered the heads
of the pension funds C- QUADRAT Ampega Asset Management Armenia and
Amundi-ACBA- Asset-Management on 11 December.
http://www.arminfo.am/index.cfm?objectid=21A658B0-60E3-11E4-B9FF0EB7C0D21663
by Alexandr Avanesov
Friday, October 31, 12:48
A new scandal is brewing around the funded pension system that was
introduced in Armenia not so long ago, a local "Zhamanak" ("Time")
newspaper writes.
According to the source, the Government has not yet transferred the
pension payments charged from the monthly salaries of the citizens to
their pension accounts. "According to the Law on the Funded Pension
that was amended following a relevant decision of the Constitutional
Court, the pension payments that are charged from the salaries on a
monthly basis must be transferred to the state budget and then to the
pension accounts of the citizens. Since April the amounts that have
been charged from the citizens and transferred to the budget have
not be transferred to the pensions funds or the pension accounts of
the citizens yet," the paper writes.
To recall, the mandatory funded pension system was introduced in
Armenia from July 1 2014 for the employees of the government sector.
For the private sector, the system will be gradually introduced
on a voluntary basis within three years. This provision meets
the requirements of the Constitutional Court. Pension payments are
undergoing changes and a social-purpose monthly payment in the amount
of 5% of the salary is suggested. This will apply top the employees
whose salary does not exceed 500,000 drams. For the employees with
higher salary, the payment will make up 25,000 drams.
The mandatory funded pension system applies to the citizens born
after Jan 1 1974 (the citizens below 40). 5% of their salaries will be
transferred to their personal accumulative accounts. The government
will transfer a similar amount (but no more than 25,000 drams). In
November 2013 the Armenian Central Bank (CB) registered the heads
of the pension funds C- QUADRAT Ampega Asset Management Armenia and
Amundi-ACBA- Asset-Management on 11 December.
http://www.arminfo.am/index.cfm?objectid=21A658B0-60E3-11E4-B9FF0EB7C0D21663