CC continues examining constitutionality of compulsory pension scheme

The Constitutional Court of Armenia (CC) today continues examining the constitutionality of the Law on Accumulative Pensions. Representatives of the Central Bank of Armenia and the government will answer questions of the CC and then the complainant and the defendant will present their closing arguments.

The examination of the law’s constitutionality started on March 28.

The pension reform process in Armenia began on January 1, 2011, with the introduction of a voluntary accumulative pension system. The compulsory component of the system took effect on January 1, 2014. Under the law, citizens born after January 1, 1974, will have to pay 5% from their salaries to accumulative pension funds, with the state adding another 5%.

The opposition factions of the Armenian parliament intended to call a special sitting on November 15, 2013, to discuss the issue of postponing the compulsory component’s introduction from January 1, 2014 to January 1, 2015, but the sitting did not take place as HHK and OEK factions did not attend the sitting.

Prior to that, the opposition factions applied to the CC, challenging the constitutionality of the law, particularly its compulsory component. They also filed a petition for suspension of the compulsory pension component until the court makes a decision.
On January 24 the Constitutional Court suspended parts 3 of Article 76 and 86 of the Law on Accumulative Pensions pending the court decision. The result is likely to be known today.