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Pension reform is a positive set of measures for Armenia, Mark Horton, head of the delegation of the International Monetary Fund, told reporters in Yerevan on Sept. 30, Armenian News - NEWS.am reports.

Horton told that the IMF mission to the country has had discussions with the authorities on the pension reform, which had been amended over the course of the year. 

“We continue to regard pension reform as a positive set of measures. It addresses unfavorable demographics in Armenia, poverty, and, finally, can give momentum to the capital market,” he added.

To remind, the new version of the Law “On funded pensions” became effective on July 1, 2014, and limited the scope of mandatory retirement savings to state sector employees under 40. Private sector workers of the same age were given a 3-year waiver, within which, however, they are encouraged to enter savings schemes, which are already offered by two asset management companies. The previous incarnation of the law, effective since January 1, applied to all employed citizens under 40.

Earlier, the pension reform bill had aroused bitter controversy in society, leading to massive riots and civil disobedience movements in Yerevan. Protesters argued that the current income levels in Armenia make employees and their households, extremely vulnerable to any extra payments beyond current taxation.

Average monthly salary in Armenia, by national statistical data, has reached 173,200 AMD (around $420) as of Aug. 2014, but this obviously does not include a considerable portion of lower-paid jobs, where informal employment still prevails.

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