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Official News

Friday, 16 December 2011

PM: “New funded pension system to secure old age for citizens”

Prime Minister Tigran Sargsyan participated in the ongoing first annual conference on pension system in Yerevan which seeks to summarize the work carried out over the past year towards the implementation of pension reforms, as well as identification of further important steps.

The Prime Minister said that the new funded pension system will help the citizens to ensure a secure old age. “We are changing peoples’ mentality and motivations. An active citizen should think about the fact that he is responsible for his own future and make provisions for secure old age,” the Prime Minister said.

This the rationale behind the pension reform in line with the modern world realities. “We are creating an environment for free-thinking individuals who should be able to realize their freedom. Pension reform will change our society's economic and financial thinking,” Tigran Sargsyan noted.

This will shape an army of forward-looking and exacting citizens. The head of government further said that his government will build a favorable environment, providing citizens with knowledge necessary to save money. “The State will add on our citizens funded savings,” the Premier stated Tigran Sargsyan said that the introduction of pension reform helped identify the existing corruption risks, eliminating the incidents of evaluation mismanagement.

Tigran Sargsyan advised that the government is set for a 10% increase in benefits and pensions from January 1, 2012. “Even during the crisis, not only did the State fully comply with its obligations, but it managed to raise pensions and social benefits. We are consistent in applying this principle of social policy,” the Prime Minister said.

The mandatory funded pension system will be introduced in Armenia as of January 1, 2014. After the reform, the pension system will be featuring three main components: State-guaranteed basic pension, mandatory funded component (the payment of 5 percent wage citizens, which will complemented by the State) and optional voluntary savings.

The system will be mandatory for those citizens born after January 1, 1974. The voluntary contribution system has been effective since January 2011.

July 2022