YEREVAN. – Armenia’s poverty rate must be three times lower for successful introduction of pension reform, MP from Prosperous Armenia (PA) said.

Mikael Melkumyan said the pension reform was discussed back in 2006-07.

“Later the leader of our party and other two MPs were present during the debates of coalition forces. If you remember at that time PA was a part of ruling collation. We agreed to discuss introduction of pension reform by 2014 when the crisis in economy would be overcome. But it turned that before the crisis poverty rate made 24-15%. It was expected to lower to 12-13%, but now it is 35%. Under these conditions pension reform is out of question,” Melkumyan told reporters on Wednesday.

Therefore, Melkumnyan noted that his party believes it is not time for pension reform.

The new cumulative 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.