Wednesday, April 2 2014

The Government of Armenia is determined to bring the law on the mandatory accumulative pension system in line with the Constitution and carry out the pension reform, the Government said in a press release following the Constitutional Court's decision recognizing the law on the mandatory accumulative pension system unconstitutional.  

The CC has announced 30 September the deadline for the Government and the Parliament to bring the law in line with the requirements made. The decision of the CC comes into force at the moment of announcement.

The Government claims that in 50 countries the given pension reform ensured welfare of the population and stability of the country. The Government's further actions will be made public after comprehensive familiarization with the Constitutional Court's decision. 

Introduction of the mandatory accumulative pension system amid heavy social conditions in the country has sparked public outrage. The 4 non-governmental parties: Armenian National Congress, Prosperous Armenia, Heritage and ARFD, appealed to the Constitutional Court with a relevant claim over the issue.  The mandatory accumulative pension system will apply to the citizens born after Jan 1 1974 (the citizens below 40).  Starting Jan 1 2014, 5% of their salaries will be transferred to their personal accumulative accounts. The government will transfer a similar amount (but no more than 25,000 drams).