Ameriabank to launch corporate pension plan

PanARMENIAN.Net - Ameriabank is planning to offer a new service in the investment market of Armenia. The Bank will present a corporate pension plan, which aims to ensure financially independent and untroubled life for the elderly people. The implementation of this non-governmental pension system is significant because it does not only resolve a social issue, but ensures long-term investments, which are important for the development of Armenia, Ameriabank's marketing office told PanARMENIAN.Net



The plans will allow the investors to make contributions to a trust management account, which will be returned to them pursuant to a schedule agreed upon in advance in most cases after their retirement age.



The proposed plans may be individual or corporate. In the first case the citizens make the contributions for their future pension personally, while in the second case the employer participates as well.



The second plan is intended for all organizations interested in preventing the outflow of their staff who have efficiently worked for them for many years, in motivating them in doing quality work and ensuring prosperous future for them. Since it is envisages that the employees will receive the payments after retirement, the employer gets the opportunity to build foreseeable long-term relations with the employees. The plan will stimulate the recruitment of new employees as well, and will endorse the image of the refined organization as one that takes special care of its staff.



Corporate pension plans are based on mutually related trust management accounts. The organization develops a pension payment plan in the names of the employees. The contributions may be at 3-15% of the salary, as mutually agreed between the employer and employee. When making a contract, the employee and the employer clearly state the provisions regarding the effect of pre-term termination of the employment contract on the contribution of installments.



In the phase of accumulation, the Bank submits quarterly reports on the position of the employees' investment portfolio to the employer as the founder and to the employees as beneficiaries.



The said plans are rather flexible and it is not mandatory that the onset of payments coincides with the retirement age stipulated by law. An earlier age or later date can be stipulated at the investor's discretion. Besides, the plans do not replace the social pension, but ensure additional income.



Employees are also given the opportunity to receive the accumulated amount pre-term at their discretion, either lump-sum or as monthly payments, fully or partially, upon prior agreement with the employer and the Bank.



The plan allows also clearly stipulating the cases when the employer can compensate an employee pre-term in situations of extreme demand (illness, emergency, etc.).



For the management of pension money collected under the presented plans, Ameriabank has developed a special strategic plan jointly with "Troika Dialog", a major Russian investment company, which has vast experience in pension asset management. According to the developed strategy, in the first years the money will be invested in government securities, which are the most reliable investment tools in Armenia, and later, when there are more funds available, the Bank can invest a part of the portfolio in preferable international securities.



Ameriabank CJSC is an investment bank, which offers corporate, investment and limited individual banking services, by providing with a complete package of banking solutions. The Chairman of the Board of Directors of Ameriabank is Mr. Ruben Vardanian, and the Chairman of the Management Board-General Director is Mr. Artak Hanesyan. Troika Dialog Group, one of the largest Russian investment banking companies, is the strategic partner of Ameriabank.