FOUR-LEVEL PENSION SYSTEM TO FUNCTION IN ARMENIA STARTING 2008
YEREVAN, AUGUST 2, NOYAN TAPAN. Starting 2008, a four-level pension
system will function in Armenia. Ara Sargsian, Advisor to the Chairman
of the RA State Social Insurance Fund, stated at the August 1 seminar
for reporters that the system will consist of the minimum old-age
benefit, basic, compulsory cumulative and voluntary cumulative
pensions. According to him, the working citizens under the age of 30
will be part of the compulsory cumulative system, those aged 30-45
will have a choice of joining this system, while persons above 45
will receive pensions under the current system. It is envisaged
that the minimal pension will make 40% of the salary instead of the
current 15-20%.
A.Sargsian said that people will use the voluntary pension system
based on the voluntary principle: by making social payments. Social
payments made by those making use of the compulsory cumulative system
will accumulate on their personal accounts. Ashot Abrahamian, Head of
the fund’s Department of Social Insurance and Programs, informed those
present that in case a person does several jobs but has one personal
account, all his payments will accumulate on this account. It was noted
that more than 530 thousand pensioners currently receive pensions in
Armenia. Over 118 thousand persons receive disability pensions.
Social payments are made by about 150 thousand employers and 450
thousand employees.