ARMENIANS WORKING IN RUSSIA TO GET PENSION

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[07:03 pm] 12 December, 2006

Armenia is the forth country that will sign an agreement with the
Russian Federation on social reforms, namely referring to the sphere
of pensions.

This means that the Armenians working in Russia will have no troubles
and concerns while retiring. They can be convinced that the years in
Russia haven’t been in vain.

"This is really a good chance for all the citizens of Russia who
once worked in RF and now fear that they may lose their pensions of
that period and stay in Russia for that reason. This will become a
kind of incentive for them to return to their Motherland without any
further fear", announced Vazgen Khachikyan, president of the Social
Insurance Foundation.

On December 5-6, joint consultation of the heads of Armenian and
Russian Social Insurance Foundations was held in Moscow. The parties
focused on a number of issues; including the citizens of the two
countries, the provision of pensions of oversea workers, the reforms
of the pension system, the activities of the foundations and their
further improvement.

Which country will appoint and pay the pension? Vazgen Khachikyan
claims that citizens’ pensions are discussed and fixed in the country
where they have applied.

For example, if any Armenian has worked in RF for 10 years, RF (which
has got Department of International Pensions) will pay for those 10
years and the rest will be paid by Armenia. According to statistics
data, 600 – 800 thousand RA citizens have settled in Russia over the
past 10-12 years.

In Mr. Khachikyan’s opinion, the number of pensioners will surpass
100 thousand. Though the head of the Social Insurance Foundation is
unaware of the number of the Russian workers in the boundaries of
Armenia, he assumes that it is not great.

There are vital differences between the pensions of the two
countries. Pensioners get 3000 rubles (approximately 120 USD) in Russia
whereas Armenian pensioners get 11 400 AMD (approximately 32 USD). "The
point is that life costs higher in Russia", says Vazgen Khachatryan.

Currently the base pension is 4250 AMD in Armenia.

Average pension will be increased to 13500 AMD in 2007.

By the way, while calculating the pensions of the Armenians working in
Russia, they will take into consideration the payments to the social
insurance foundations and not work experience.

It is not a secret that most of the Armenians working in Russia haven’t
got legal right to work, thus they will not make use of this privilege.

It is noteworthy that 1317 pensioners of Armenia, who were deprived
of pensions because of the absence of social cards, can already get
their pensions.

"Under the decision of Constitutional Court according to which the
existence of social card is no more obligatory, everyone can get
pension henceforth. 700 pensioners have already got pensions", says
Vazgen Khachikyan.