REFORMS OF PENSION SYSTEM TO BE LAUNCHED IN ARMENIA IN 2010

Noyan Tapan

Se p 10, 2008

YEREVAN, SEPTEMBER 10, NOYAN TAPAN. The social sector is an important
one, there is much to be done in it as people are the focus of a
social policy, and human fates are behind each decision. The RA
minister of labor an social issues Arsen Hambartsumian stated this
at the September 10 press conference dedicated to 100 days of his
tenure. In his words, although it is incorrect to make haste, there
will be no tangible progress without radical changes in the sector.

The minister announced that an amended program of pension reforms
will be soon submitted to the RA government for approval. The program
envisages a shift to a multi-stage system consisting of two components:
state distributive and private cumulative. A. Hambartsumian said
that it is envisaged launching the reforms of the pension system
in 2010. The system will be multi-stage. The first stage is a
social pension: the state will provide everyone with a minimum
social pension. The second stage is a labor pension: it is envisaged
providing working persons over 40 with an income ecxceeding 1.5-fold
the poverty line. The next is a compuslory cumulative pension:
working persons under 40 will be provided with an income adequate to
the established social payments. The final stage of the system is a
voluntary cumulative pension which will be a source of extra income
for old persons who make voluntary payments.