The collection of accumulative payment forced by the law, and its transference to the private pension fund is illegal and contrary to the 45th clause of Armenia's Constitution. It breaks the right for property guaranteed by the Constitution, the statement by the ARFD says.
ARFD thinks that the obligatory accumulative component is also contrary to the constitutional system of a social state, as it disrupts the needed fulfillment of several social rights foreseen by the Constitution. It also did not ground the point according to which the state budget will guarantee the funds.
"The fact that the payments made by citizens will be in the possession of private foreign companies will lead to the number of legal, economic and social problems linked with guarantee of funds, currency export from the country as well as management of the funds and their transparency. The offered model being unprecedented in the world practice is obviously risky. It does not ensure fully-fledged resolving of the problem, and does not guarantee the possibility of having the worthy pension by the future generations. Alas, the government and the parliamentary coalition did not understand the above mentioned problems and even declined the initiative of ARFD, PAP, Heritage and ANC to discuss the issue in the National Assembly and delay adoption of the law for a year", - the statement says.
The Yerevan Committee of ARFD calls on Yerevan residents to take part in the march against the law on accumulative pensions that will start from the Liberty Square on 17 December.
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. 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."
Earlier Finance Minister David Sargsyan said Armenia will transfer over $100 million pension assets under management of private European funds. Pension assets of Armenia will be managed by two private European funds starting 2014. The assets will amount to $101-$108 million in the first year, and in 2015 they will grow to $100-$150 million. Two companies applied to the Finance Ministry for relevant licenses: Amundi (France) - a subsidiary of Societe Generale (20%) and Credit Agricole (80%) and C-Quadrat (Germany). The minister said these two companies have rich experience in management of social funds. Amundi manages $1.3 trillion assets and C-Quadrat - $500 billion. The licensing procedure is over. Sargsyan recalled that the number of pensioners and employees in Armenia is nearly equal, which allow pension reform.