Even after introduction of funded pension scheme, unfunded pension scheme will remain in force in Armenia

PanARMENIAN.Net - On September 22, the RA National Assembly hosted hearings on a package of bills on state pensions, including 5 laws and 49 amendments to laws. The hearings were organized by the RA NA Standing Committee on Social Affairs with participation of parliament members, Deputy Minister of Labor and Social Affairs Artem Asatryan, Deputy Finance Minister Vardan Aramyan and representatives of the public sector.

Presenting the legislatives amendments, Deputy Minister of Labor and Social Affairs Artem Asatryan noted that despite introduction of volunteer and compulsory funded pension schemes in Armenia, the unfunded pension scheme will remain in force in the country. "Relevant infrastructures and public consensus are required for the transfer to the funded pension scheme," said Asatryan.

Referring to pension amount for villagers, who have no record of service, he said that villagers will receive only basic pension to meet their minimum needs. Answering a question of member of Orinats Yerkir parliamentary group Artsrun Aghajanyan as to why people with record of service can receive pension in 63, while the rest - only in 65, Chairman of the RA NA Standing Committee on Social Affairs Hakob Hakobyan said the matter needs to be discussed. "We should jointly discuss this matter to substantially explain this difference," he said.

On June 24, 2010, the Armenian parliament adopted in the first reading the bill on introduction of amendments to the RA Law on State Pensions, envisaging transfer to the funded pension scheme. The transfer to the new system is regulated by five laws and 49 amendments to laws. Under them, the volunteer funded pension scheme will be introduced in Armenia on January 1, 2011. The transfer to the compulsory scheme (for citizens under 40) will be implemented from January 1, 2014.