YEREVAN. – At present, the Constitutional Court (CC) of Armenia is announcing its 64-page ruling on several MPs’ appeal that contests two provisions in the new law On Funded Pensions (PHOTOS).  

The ruling is read by CC President Gagik Harutyunyan who, prior to the court session, asked those in attendance to sit because the text of the verdict is very long.

Harutyunyan, however, is reading the judgment while standing.    

Members of the “Dem.Am [I am against]” civic initiative, which opposes the new pension law in Armenia, are gathering outside the CC and following the court hearing by way of mobile phones and iPads, the Armenian News-News.am reporter informed. 

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. 

On January 24, however, the Constitutional Court decided to suspend the execution of some components in the Law on Funded Pensions pending its hearings, which commenced on March 28.  Notwithstanding this, some employers already are deducting the mandatory pension payment from the salaries of their employees.        

The law caused dissatisfaction among Armenia’s civil society, and therefore paved the way for the establishment of the “Dem.Am [I am against]” civic initiative, which opposes the new pension law in Armenia. 

The four non-ruling-coalition parliamentary factions—i.e., the Armenian National Congress, Prosperous Armenia, ARF Dashnaktsutyun, and Heritage—likewise are against this new law, and they declare that its mandatory component is unconstitutional.    

The CC session is live streamed by RFE/RL Armenian service.