YEREVAN. – Armenia does not have sufficient demographic resources to operate the old pension plan, Labor and Social Affairs Minister said.

During the parliament's special session on Monday, Artem Asatryan said we can not ignore the fact  that the demographic resources of Armenia - neither present nor future - are not enough to extend the current pension system on the principle of solidarity between generations. The reforms should follow this logic, he added.

On April 2, the Constitutional Court (CC) of Armenia declared unconstitutional a whole series of articles in the new Law on Funded Pensions. Despite this ruling, however, the state-run financial institutions still obliged the employers to make mandatory funded pension cuts from the salaries of their employees. The respective reasoning was that the CC gave the parliament and the government until September 30 to amend the aforesaid law’s provisions that were deemed unconstitutional.