New pension reform program starts in Armenia

The USAID-funded Pension Reform Implementation Program (PRIP) starts in Armenia. During a meeting with journalists today, USAID/PRIP Program head Artak Ghazarian, Labor and Social Affairs Minister Artyom Asatrian, Deputy Chief of the Armenian President’s Staff Vardan Aramian, and Chairman of the National Assembly’s Standing Committee on Social Affairs Hakob Hakobian spoke about the program’s advantages and work done in connection with Armenia’s shift to the accumulative pension system.

The labor minister said the new program is a continuation of the previous one and will enable to create integral infrastructure of the pension system and enhance its potential.

“It will allow enhancing infrastructure and human potential. The new pension system will be introduced in January 2014. Its introduction will also set new tasks before us. We have already begun preparatory work, most of which was completed and we are now approaching the practical introduction,” Asatrian stated.

In his words, a system containing data of some 500,000 pensioners has already been created, but there is still some work to be done.

We would remind you that on January 1, 2014, Armenia introduces an accumulative pension system. Private companies will manage pension accounts. Citizens may optionally open their pension accounts in private funds as well as transfer money from one fund to another. The new system will be compulsory for citizens under the age of 40.