by Nana Martirosyan
There is no alternative to the compulsory accumulative pension system, Armenian Prime Minister Tigran Sargsyan said at today's press conference in Yerevan.
According to Sargsyan, the law on compulsory accumulative pension system sparked public outrage, because the citizens think that the authorities are going to get wealthier at the people's expense. The Prime Minister does not share this opinion. "From now on not only the state but also each citizen will be responsible for his/her 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 law, 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 refer 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 21 November, an action of protest was held in front of the Government against the pension reform.