YEREVAN, JUNE 11, ARMENPRESS. The government approved the draft law on amendments to the law “On Funded Pensions”. The mandatory funded component will enter into force on July 1. The bill proposes to accumulate 10% of the income of citizens joining the funded compulsory system starting from July 1, by 2.5% and 7.5%. ie 2.5% will pay the citizen, and 7.5% – the state. Atom Janjughazyan, the Minister of Finance of the Republic of Armenia, noted that according to the current regulation, the pension system participant accumulates 10% of its income, 5% pays the person, 5% – the state in favor of the person. “It is an additional burden for the members of the system, as well as for the newcomers, which is the main concern of the public. The same 10% of the proposed project will be formed as follows: 2.5% – citizens, 7.5% – the state.
The overall contribution of the system is important, given the fact that the majority of the mandatory funded system beneficiaries are already included in the system and only a small part of the beneficiaries, the inclusion of which is envisaged in the system after July 1. At present, 120 billion drams have been accumulated in accumulative funds, 70 percent of which is invested in the Armenian economy, “Janjughazyan told Armenpress.
Speaking about the decision, Prime Minister Pashinyan said: “Dear colleagues, in my speech to the National Assembly, I said that this is one of the most important challenges our government is facing. Of course, the accumulative pension system has its own history and our attitude to that system also has its history. The situation was as follows: From July 1, the regulation enters into force, according to which all citizens born after 1974 must be involved in this system without exception. Today, there are already about 280,000 potential beneficiaries in the system, more than 200,000 citizens, and the law is already valid. If we did not take any action, that law would be in full force from July 1. Now, considering the circumstances, we have several choices.
1.Generally cancel this system. We realized that we can not go to such a situation, why?
a) Because today about 120 billion drams are involved, managers are distributed in different places, 70 percent in Armenia. In case of cancellation, we will have 2 negative effects 1. As long as the money is out of the economy, 2. Today our managers have a tremendous reputation throughout the world and it would be very hard for them to suspend the economic giants in Armenia, and then persuade people to say, what the country has changed, let’s invest in our economy to develop. Of course, this effect would be very negative.
The next solution was the following: To postpone this setting for some time. It seems that it was a very simple and easy solution, but the following problem arose here: 200,000 citizens who are already involved in the system, have a very simple question. we pay and suddenly another approach towards our dear compatriots is applied to us, not to us. In other words, they would continue paying for the delay, and 80,000 our compatriots would continue to pay, there would be a problem here, and injustice would be over 200,000.
Previously, 5 percent of the cumulative pension was paid by the state, and 5 percent – beneficiaries. Now it is proposed for everyone, without exception, to change this proportion, and 7.5 percent to pay the state, 2.5 percent to the citizen. As a result of this regulation, 200,000 citizens, who have so far paid, From July 1, it will feel a relief of burden, on average, each person will pay less than 5,000 drams more than he had previously paid. That is, we raise the salary of 207 thousand citizens by 5,000 drams. And 80,000 new members of the system will feel only half of that potential burden, which, of course, is a painful solution, but as far as we have discussed, the most painful solution to all these solutions was the solution. Finally, let’s not forget that citizens pay these amounts to themselves, that is, they do not lose the right to property. This is a temporary setup, and we also assume another commitment, which is the following: if we make changes to the income tax rate, as a result of these changes we must make sure that the status quo is maintained. In other words, no increase in the burden will be in the future, just what is now paid on the cumulative fee, the income tax will go down, the cumulative fee will come back to the former size, that is, the 5/5 proportion will be preserved, but the citizen will not make any change in terms of money , this change will not be noticeable.
This is a delicate issue and hopes