Government Continues To Repeat Mistakes In Funded Pension System (Vi

GOVERNMENT CONTINUES TO REPEAT MISTAKES IN FUNDED PENSION SYSTEM (VIDEO)

18:39 | June 17,2014 | Politics

The Armenian government has actually revoked compulsory pension
contributions by replacing it with the so-called targeted social
payments.

Starting July 1, public sector employees will be forced to make
social payments.

“The proposed tax will be charged from employees’ salaries and will
not exceed 25,000 drams for employees getting more than 500,000 dram
salaries, even if the salary is higher, the state’s contribution
will be 25,000 drams,” Armenia’s Minister of Labor and Social Affairs
Artem Asatryan said when presenting the proposed changes.

Artsvik Minasyan, a member of the Armenian Revolutionary Federation
-Dashnaktsutyun, is amazed at the questionable tactics of the
executive body that proposed the so-called targeted social payments as
a replacement of the current pension contributions. “They are making
a pun and suggesting cosmetic changes. I am so angry that I can say
many bad things in their address. What is the difference in the two
terms – compulsory contributions or social payments? In fact, nothing
has been changed,” Mr Minasyan said adding that the new government
did not learn any lessons from the previous one. “They are making
the same mistakes which will have bad consequences.”

Levon Zurabyan, Head of the Armenian National Congress (HAK) faction,
is not pleased with changes either, although he did not expect anything
good from the governmentled by Haovik Abrahamyan. Zurabyan does not
doubt that the government will be forced to make concessions under
the pressure of the Dem.am (I am against) civil movement and the four
non-governing parties.

From: Emil Lazarian | Ararat NewsPress