YEREVAN. –  The head of Armenian Union of Information Technology Enterprises Karen Vardanyan is confident that pension law cannot function in Armenia.

This is the first time when people's money is taken directly from their pockets, Vardanyan said during a media conference on Monday.

“The government agencies act as if they are obliged to urge people to take to the streets and voice their protest. With the lack of opposition, there is an impression that the ministries, Central Bank are doing their job,” he emphasized.

Vardanyan said there is no official who could properly explain the essence of pension reform. He believes there are two people who can answer the questions: president and prime minister.

“The officials are presenting leadership the distorted picture of the protest movement,” Vardanyan said.

The new funded pension plan, which formally came into force in Armenia on January 1, 2014, is mandatory for those born in and after 1974 and voluntary for those born before 1974. In line with this plan, 5 to 10 percent of the monthly salaries in Armenia will be deducted and mandatorily be allocated to cumulative pension funds; the latter will be reimbursed as pensions once a person turns 63 years old.