YEREVAN. – There are some shortcomings in the law; that is why legislative changes will be made. But this will be made as a result of discussions, not pressure.  

Armenian National Assembly Speaker Hovik Abrahamyan told the above-said to reporters on Monday.

Abrahamyan responded to the query on whether or not the authorities could make concessions with respect to the newly introduced law on mandatory funded pension system in Armenia.

He added that if there is a fault in the law, it will be corrected. 

To the question on whether the authorities are prepared to forego the mandatory pension deductions, the Armenian parliament leader responded: “We are ready to discuss.”

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 the hearing—on March 28—of the petition submitted by the four non-ruling-coalition parliamentary forces—the Armenian National Congress, Prosperous Armenia, ARF Dashnaktsutyun, and Heritage—, and into the constitutionality of the several articles of the law.

Notwithstanding this, some employers already are deducting the mandatory pension payment from the salaries of their employees.