ArmInfo.From July 1, 2018, the mandatory funded pension system will become mandatory for all categories of Armenian citizens. Deputy Minister of Finance of the Republic of Armenia Karen Tamazyan stated this on July 3 from the rostrum of the Armenian parliament, presenting the draft amendments to the law on the mandatory funded pension and the package of accompanying laws that were adopted by the RA National Assembly on October 4 in the first reading.
According to Tamazyan, the government of the country does not intend to extend the terms of implementation of the provisions of the current law, which will become mandatory for all. The package presented by the executive body is aimed at solving 2 tasks. The first change concerns powers to regulate issues related to the funded pension system. So, the government proposed to redistribute these powers between state structures and the Central Bank, which will allow the financial market to become more flexible. The powers will be divided between the Ministry of Finance, the Ministry of Labor and Social Affairs, the State Revenue Committee and the Central Bank in order to make common decisions. Coordination of work is handled by a working group. The second change concerns allocations to accumulation funds and to the state budget by Armenian citizens who work in international structures. It is about the procedure of 50 persons for whom a system has been created, through which they will be able to pay out funds to both funded funds and 23% income tax to the state budget. The deputy minister said that on the basis of the decision of the Constitutional Court, the government of the country is developing another package of bills, which in due course will be submitted to the parliament of the country.
Earlier, the Minister of Labor and Social Affairs Artem Asatryan reported that at present the number of participants in the mandatory funded pension system exceeded 180 thousand people. Most of them are representatives of the private sector. According to the Minister, as of today, 80 billion drams have been accumulated in management companies within Armenia. Based on the results of three years, as a result of the work done in the direction of assessing the effectiveness of management, the funds increased by about 32%, which, according to the minister, is a fairly good indicator. "The specified amount is introduced into the relevant instruments and their return is guaranteed by law," stressed the head of the Ministry of Labor and Social Protection.
It should be noted that the Government of Armenia in its new program for 2017-2022 envisages, together with the Central Bank, to take steps to increase the availability of financial instruments and the formation of long-term pension savings, the infusion of which into the real sector will stimulate economic development and increase investment. In particular, the Government provides for the end of 2018, together with the Central Bank, to develop a capital market development program aimed at encouraging the issuance of shares and bonds by local companies. Until the end of 2019, the Government envisages, together with the Central Bank, through the necessary right regulation, to increase the availability of financial services. Until the end of 2020, to expand the pension savings system, the Government together with the Central Bank will develop a medium-term program for the development of the insurance market aimed at introducing new insurance instruments and launching life insurance. It should be recalled that since January 1, 2014, a multi-step accumulative pension system has been introduced in Armenia, mandatory for people born after January 1, 1974 (for citizens born before January 1, 1974 there is a distribution pension system). According to the new law of the Republic of Armenia "On funded pensions," the basic minimum pension will be equal to the subsistence minimum, and the basic pension will be 150% of the subsistence minimum. The monthly mandatory payments will make 5% of the salary, 5%, but not more than 25 thousand drams, and for entrepreneurs 300 thousand drams, the savings account will be contributed by the state. There are two pension funds in Armenia under the mandatory funded pension system: Amundi-ACBA Asset Management (since November 19, 2013) and Tse-Kvadrat Ampega Asset Management Armenia LLC (since November 29, 2013). The shareholders of ZAO Amundi-ACBA Asset Management are a French company - 51% and ACBA-Credit Agricole Bank - 49%. Shareholders of LLC "Tse-Kvadrat Ampega Asset Management Armenia" are the Austrian investment company C-QUADRAT Investment AG - 74.9% and the German company Talanx Asset Management GmbH - 25.1%. Members of the funded pension system (NPS) can regularly receive information on the accumulated amount on their pension account through the Internet, www.epension.am website, account operators and ATMs.