by Marianna Mkrtchyan
It is necessary to create mechanisms to increase the Armenian public's trust in pension funds, Mher Shakhgeldyan, Secretary of Orinats Yerkir Party Faction, Deputy Head of Orinats Yerkir (OY) Party, told reporters, Tuesday.
"Our stance on the mandatory accumulative pension system remains unchanged. I think, the citizens display negative attitude to the pension reform as they do not trust in pension funds, and not because they do not want to accumulate their pension for future," he said.
To recall, the voluntary accumulative pension system was introduced in Armenia on Jan 1 2011. The system will become compulsory starting Jan 1 2014. According to the bill, the minimal pension in the country will be equal to the minimum wage, while the basic pension will total 150% of the minimum wage. The compulsory 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). On 15 November the Republican Party boycotted the extraordinary meeting of the Parliament over the issue.
Later on January 18, a 7000 action of protest was held in the Liberty Square against the pension reform with participation of representatives of four parliamentary factions: ARFD, Heritage, Prosperous Armenia and Armenian National Congress, as well as the public interest group "We are Against".