YEREVAN. – Members of the “Dem.Am [I am against]” civic initiative—which opposes the mandatory component of the new pension law in Armenia—, who on Wednesday were gathered outside the Constitutional Court (CC), applauded and showed a great enthusiasm toward the CC ruling.
As reported earlier, the CC on Wednesday deemed unconstitutional a whole series of articles in the new Law On Funded Pensions, which were contested by a lawsuit by the four non-ruling-coalition parliamentary factions’ MPs.
Those who had gathered outside welcomed with applause and “victory” calls the plaintiff's representatives who were coming out of the CC building, the Armenian News-NEWS.am reporter informed. But the “Dem.Am” members greeted the respondents in the case by chanting “shame”.
The civic initiative members have decided to meet on April 12, to decide on their next courses of action.
The CC gave the parliament and the government time until September 30 to amend the aforesaid law’s provisions that were considered unconstitutional. In addition, all the mandatory pension deductions which already were made shall be reviewed. The CC judgment came into effect upon issuance.
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 were 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 mandatory component of 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.
Photo by Arsen Sargsyan/NEWS.am
