Compulsory accumulative pension system prompts another action of pro

Compulsory accumulative pension system prompts another action of
protest in Yerevan

by Karina Manukyan

Saturday, December 7, 15:56

Compulsory accumulative pension system prompted another action of
protest in Yerevan today on 7 December. This is not the first action
of protest this week. This time, activists organized a march of
protest on bikes. Several dozens of activists cycled along the city
streets carrying flags “I am against,” informing people on the
negative aspects of the pension reform and calling everyone to join
their fight.

Introduction of the compulsory accumulative pension system in Armenia
has sparked public outrage in Armenia. People complain against
upcoming salary charges amid rising gas and electricity tariffs. The
transport fare may also be increased by 50%-100% next year. Such kind
of reforms may even more deteriorate the heavy social situation in the
country, experts say.

To recall, the voluntary accumulative pension system was introduced in
Armenia on Jan 1 2011. The system will become compulsory starting Jan
1 2014. According to the bill, the minimal pension in the country will
be equal to the minimum wage, while the basic pension will total 150%
of the minimum wage. The compulsory accumulative pension system will
apply to the citizens born after Jan 1 1974 (the citizens below 40).
Starting Jan 1 2014, 5% of their salaries will be transferred to their
personal accumulative accounts. The government will transfer a similar
amount (but no more than 25,000 drams). It is noteworthy that 6.6%-13%
and not 5% of the monthly wages will be charged, as the charges will
be made from the so-called “brutto-salary.” On 15 November the
Republican Party boycotted the extraordinary meeting of the Parliament
over the issue. Later on 21 November, an action of protest was held in
front of the Government against the pension reform.

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