Armenia. Pension Reform Bill Approved by Parliament
The National Assembly approved on Wednesday the new Armenian government’s decision to complete an unpopular reform of the country’s pension system, which was launched four years ago.
The new Western-backed system is to cover 280,000 or so Armenian workers born after 1973. It requires them to earn most of their future pensions with monthly financial contributions to one of two private pension funds operating in Armenia. Both funds are owned by European companies.
The former government, which embarked on the pension reform in January 2014, said that the existing mechanism for retirement benefits is not sustainable because of Armenia’s aging and shrinking population. But it decided to make the new system optional for private sector employees until July 2018 in response to angry street protests.
Read More: Asbarez
