ARMENIAN MP SUGGESTS CITIZENS CONTRIBUTE TO RETIREMENT FUND

Tert
Nov 12 2009
Armenia

The 2010 Armenian state budget has allocated 239 billion AMD to the
social services sector. Compared with the 2009 budgetary amount, this
year’s allocation has been cut by 9 billion AMD. According to the
chair of the National Assembly Standing Committee on Social Affairs,
and member of the ruling Republican Party, Hakob Hakobyan, that’s not
too bad, and it still allows for all programs to remain as they are.

In Hakobyan’s words, the committee will present to the government
a number of proposals; in particular, securing 1 billion AMD for
compensation for investments. "The other proposals will be formulated
with the results from today’s committee meeting," said Hakobyan.

The MP also informed the press about changes in the social services
sector. In his words, the principle of "working children supporting
their parents" is at work today. "We are going to move forward to
an accumulative system, whose purpose is for each citizien to secure
his retirement while he is working," promised Hakobyan.

It is for this reason, it is suggested that all citizens, until the
age of forty, deposit 5% of their income into a retirement fund.

Simultaneously, the government, as a "interested party," will
contribute an additional 5%. Each citizen will be able to follow the
increase in the amount, and after reaching retirement age, he or she
will be able to access the entire amount.