YEREVAN. – A multi-pillar pension system, several of whose provisions have caused a rightful outburst among the most diverse layers of society, shall enter into force in Armenia on January 1, 2014.

Opposition ARF Dashnaktsutyun Party’s capital city Yerevan Committee statement reads the aforesaid with respect to the forthcoming introduction of the mandatory cumulative pension law in the country.

“In fact, it is illegitimate and it conflicts with the Constitution, violating the person’s constitutionally-guaranteed  right to property.     

“The mandatory cumulative component, which is prescribed by the law, also runs counter to the constitutional system of a social state. 

“Underscoring  the constitutionality of Armenia’s laws, the ARF Yerevan Committee calls upon Yerevan residents to participate in the march against the [cumulative] pension [plan], which [i.e., the march] will get underway on [Tuesday,] December 17 at 12:30pm, at Liberty Square [in Downtown Yerevan],” the ARF statement also notes.  

To note, the new cumulative pension plan—which will come into force on January 1, 2014—will be 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.