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Protest march in Armenia against mandatory funded pension system

Armenia Materials 6 February 2014 16:14 (UTC +04:00)
The civil initiative ‘I am against’ is holding a protest march on Thursday in Yerevan against the introduction of a mandatory funded pension system, according to the tert.am website.
Protest march in Armenia against mandatory funded pension system

The civil initiative 'I am against' is holding a protest march on Thursday in Yerevan against the introduction of a mandatory funded pension system, according to the tert.am website.

The protestors are demanding there is enforcement in the Armenian constitutional court's decision to suspend a number of provisions of the law on funded pensions and not to force public institution employees to make contributions from their salaries to the mandatory savings funds.

The rally participants are chanting slogans such as 'Shame', 'We are against' and 'We are the masters of our country'.

On January 1, 2014 Armenia introduced a mandatory component of the funded pension system. The introduction of a mandatory pension savings system was provided in the law 'On the Funded Pensions' adopted in 2010 by the Armenian National Assembly, according to which a voluntary component of the funded system has been in force since 2011.

The new law requires Armenian citizens born after 1974, to transfer five percent of their wages into special savings funds and another five percent will be paid the government.

The citizens can get the accumulated funds upon reaching retirement age and before this, the funds will be stored and managed in the respective companies.

Opponents of this pension system who carried out the various protests believe that its mandatory nature violates the rights of citizens and is contrary to the constitution of Armenia, as well as fundamental human rights and freedoms.

Translated by E.A.

Edited by S.M.

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