Pension Reform: Government sticks with new plan despite criticism from opposition

While the parliamentary opposition has harshly criticized the government for its new proposed pension system reform, the executive has been actively negotiating with a number of leading international companies over the establishment of private pension management funds in Armenia.

Two years ago, the National Assembly of the previous convocation adopted legislation providing for a drastic reform in the pension system under which beginning on January 1, 2014 an accumulation retirement plan will become mandatory for a vast group of the Armenian population.

Thus, the reform suggests that working citizens born after January 1, 1974 (i.e. below 40) are to save up their pensions by having 5 percent of their salary deducted every month to the pension fund through their personal savings account (with the government doubling the sum of the transferred money). The new plan will be optional for citizens above 40.  Read more... (600 words)

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