Pension reforms are great risk for Armenia's government

PanARMENIAN.Net - Chairman of the RA National Assembly Standing Committee on Social Affairs Hakob Hakobyan believes that pension reforms are a great risk for any government.

A government cannot increase pensions' amount during reforms, as huge funds are required for their implementation, Hakobyan told a press conference.

According to him, the reforms in Armenia will refer to any working citizen below 40, who will be obliged to pay 5% of his incomes, while another 5% will be added by the state. And various funds controlled by the Central Bank will be managing these sums. A person will have the opportunity to follow on-line the management of his savings and change the managing fund, if there is a necessity in it.

Hakobyan added that as per the current legislation, pensions are paid only in Armenia. And in case of pensioner's absence, his pension can be received by a person having a relevant power of attorney with one-year term. However, if a pensioner is absent from the country for over 10 years, he will be able to receive his pension for only three years upon return. The parliament member noted that it is offered to make such amendments to the legislation, under which people will have the opportunity to receive their pensions both in Armenia and abroad.

The volunteer funded pension scheme will be introduced in Armenia from January 1, 2011. The transfer to the compulsory funded pension scheme (for citizens below 40) will be implemented from January 1, 2014.