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| 16:53:45 | 10-05-2005 | Politics |

THREE-STAGE PENSION SYSTEM

The reformation of the pension system that started in 1999 has entered its
practical stage. The government has passed the package of new conceptual
approaches to come into force in 2006, Minister of Labor and Social Affairs
Aghvan Vardanyan stated during a press conference today.

The acting computing system based on the solidarity of generations, when the
employees pay social fee to provide pension, will be replaced with a
three-stage system with three constituents. The first one is the state
provision of pensions for those, who are unable to earn money, the second is
the state accumulative provision, when the pension will be paid out of
personal social fees and contributions and the third is the voluntary
provision of pensions, when a citizens or employer can allot extra payments
to the employees.

Aghvan Vardanyan hopes that the new system will allow smoothing the
shortcomings and raising the pensions. Thus if a person gets a salary of 40
thousand AMD his pension makes 20-25% of the sum at present, thanks to the
new system the sum will go up to 60-80%.

From: Emil Lazarian | Ararat NewsPress