GOVERNMENT PICKS OUR POCKETS
Naira Hayrumyan

Story from Lragir.am News:

Published: 16:05:22 – 14/09/2012

The parliament is discussing funded pension and will most probably
approve the mandatory funded component.

In the meantime, Russia is likely to reject this system which it
adopted 10 years ago. The Russian minister of labor and social security
announced that on September 15 the government will introduce a bill
on the development of the pension system replacing the mandatory
component with the voluntary one.

The funded pension is acceptable for countries with a stable financial
system and budget and high income of people. In countries like Armenia
it cannot be accepted with confidence.

First, the Armenians, like other people across the USSR, still remember
a lot of examples of default by the government. The Armenians whose
parents lost their savings of thousands of rubles will hardly agree
to save money 30-40 years ahead.

Second, it goes without saying that pension funds are a reserve for
the government which it will spend on social and other needs. And again
money is collected from every citizen. Again they pick our pockets.

In addition, income of people does not grow while prices soar. So
people will live even worse.

A similar attempt was mandatory car insurance which helped collect
a lot of money in the treasury. Now the same will be with the funded
pension system.

People wonder why the pension fund is not based on taxes which all the
employees pay. Why does the government again reach their pockets? Is it
logical to pay only 70-80 thousand drams a month and withdraw part of
it? What government official could live a month on 80 thousand drams?

From: Emil Lazarian | Ararat NewsPress