by Ashot Safaryan
The Constitutional Court will likely review the law on Armenia's transition to the mandatory funded pension system, the head of the ARFD parliamentary faction, Armen Rustamyan, said at today's briefing in the parliament.
He thinks that the CC will adopt a transitional decision on the matter. He called on the CC not to be guided by the political conjecture and adopt only a legal decision.
To note, the new funded pension plan, which formally came into force in Armenia on January 1, 2014, is mandatory for those born in and after 1974 and voluntary for those born before 1974. In line with this plan, 5 to 10 percent of the monthly salaries in Armenia will be deducted and mandatorily be allocated to cumulative pension funds; the latter will be reimbursed as pensions once a person turns 63 years old.
On January 24, however, the Constitutional Court decided to suspend the execution of some components in the Law on Funded Pensions pending the hearing on Friday.
Notwithstanding this, some employers already are deducting the mandatory pension payment from the salaries of their employees.
The law caused dissatisfaction among Armenia's civil society, and therefore paved the way for the establishment of the "Dem Em" [I am against] civic initiative, which opposes the new pension law in Armenia.
The four non-ruling-coalition parliamentary factions: the Armenian National Congress, Prosperous Armenia, ARF Dashnaktsutyun, and Heritage likewise are against this new law, and they declare that its mandatory component is unconstitutional.