At his press conference Nov. 2, the former Armenian premier Hrant Bagratyan said that the Central Bank of Armenia should not have anything to do with pension and insurance management.

The pension situation is disastrous in Armenia now, whereas it was better during the last year of his premiership.

Bagrartyan compared the average monthly incomes in Armenia, Azerbaijan and Georgia in 1995 and 2010. In 1995, the average monthly wages were U.S. $17.4 in Armenia, U.S. $14 in Azerbaijan and U.S. $10 in Georgia. The average monthly pensions were U.S. $5.9, U.S., U.S. $4 and U.S. $5 in Armenia, Georgia and Azerbaijan respectively.

Now, however, the situation is different. Specifically, in January-September, 2010, the average monthly wages were U.S. $286, U.S. $323 and U.S. 390 in Armenia, Georgia and Azerbaijan respectively. The average monthly pensions were U.S. $60, U.S. $8 and U.S. $110 respectively. Thus, Armenia is behind its neighbors in terms of pensions and wages.

One more important aspect is that the average monthly pension was 34% of the wages in 1995, whereas it is only 20% now, the norm being 50%. The Armenian Government must fix pension rates at 40-45 percent of the wages and do its best to meet this target.

He is also skeptical about the Armenian Government’s program, which provided for investments in pension funds to the amount of 5% of wages. According to him, oligarch, rather than the Government, must do it. Armenia’s pension funds total U.S. $600 million, with the Government to invest U.S. $300 million, he said. The calculations are based on the following principle: 1.1 million employees with the average monthly wages of 110,000 AMD.