RA government proceeds to pension reform

PanARMENIAN.Net - Armenian Deputy Minister of Labor and Social Affairs Artem Asatryan said that as part of implementation of pension reform, the Armenian government enters the stage of active cooperation with all stakeholders.

A big package of legislative amendments comprising of 50 laws was adopted by the Armenian parliament in the first reading, but the pension reform envisages not only legislative amendments, but also a range of accompanying events, including creation of the required infrastructure, Asatryan told a press conference.

He added that a voluntary funded scheme will be effective in Armenia from 2011, what will allow creating certain prerequisites for the introduction of the compulsory component.

The scheme includes people under 40. To this end, a 5% guaranteed state deduction is envisaged from potential pensioner's income, while another 5% payment will be added to this sum by the state.

For his part, Deputy Minister of Finance Vardan Aramyan stated that an institute will be established to guarantee pension capitals, while the funds will not depreciate, with inflation being taken into account.

Aramyan added that the pension reform will allow creating so-called long-term money to reduce poverty.