Armenian government adamant to enforce funded pension system from 2014 January – head of staff

YEREVAN, November 18. / ARKA /. The head of the Armenian government staff, Vache Gabrielyan, said today the authorities are not going to postpone the introduction of mandatory funded pension system from next year, despite the mounting popular opposition.

Speaking at a news conference, Vache Gabrielyan said the government is very well aware of stemming difficulties, but is sure to introduce the measure being sure that all problems will be overcome.

According to him, the government has been discussing the introduction of this measure for 10 years .
“There is much talk claiming that the funded pension system is unconstitutional, but I want to stress that it had gone through numerous discussions and expert assessments, and was also discussed in parliament. Therefore, I do not see any legal or constitutional problems,” said the minister.

He said the government is willing to explain in detail to protesters what a mandatory funded pension system is, but will not launch a new debate at this stage.

Last week Armenia’s parliamentary majority made up of the governing Republican Party of Armenia and Orinats Yerkir (Country of Law) party torpedoed an extraordinary session initiated by the parliamentary minority to discuss the possible postponement of the introduction of compulsory funded pension system.

There were only 45 MPs in the hall and the quorum is 66 members of the 131-member legislature. The news prompted several hundred people dissatisfied with the coalition’s move to gather outside the parliament.

On January 1, 2014, the funded pension system is to become obligatory for all those born after January 1, 1974. It is expected to apply to some 250,000 people, including self-employed persons and rural population. Each of them is to put 5 percent of his/her monthly wage on a special account. The government will add as much but no more than 25,000 drams. ($1 – 405.06 drams). -0-

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