The Armenian Revolutionary Federation-Dashnaktsutyun (ARF-D) is against the draft amendments to the RA Law on Pensions. Amendments envisage the introduction of a pension accumulation system in Armenia.

Chairman of the ARF-D parliamentary faction Vahan Hovhannisyan pointed out that the ARF-D not only object to the draft amendments, but also calls on the other parliamentary forces to follow its example. The draft has numerous drawbacks, he said. “Of course, Armenia need pension reforms, but they must not take up such forms,” Hovhannisyan said.

He stressed that the document “poses moral degradation risks.” “It is an acceptable thing when a person pays taxes to ensure pensions for his own parents. However, when he saves money for his own pension, there is a risk of this person refusing to take care of his or her parents one nice day,” Hovhannisyan said.

He stressed the system must not be imposed on citizens. “If any one wants to save funds, let special accounts be opened for them to deposit their money and get interests,” he said. Hovhannisyan also sees opportunities for gain for government officials and their protégés in the draft. “Of course, the few agencies that will have citizens’ money at their disposal will be owned by a limited number of privileged entities,” the MP said.

Moreover, under the draft pensions are to be reckoned on the basis of accumulated funds, without the length of service considered. “This legislation is most important for our future and the future of our children. We must think well before making a decision,” Hovhannisyan said. He urged the MPs to vote down the draft.

The ARF-D member pointed out a “radical nature” of everything in Armenia – even liberalism. “Can you find a country where the minimum wages are taxable, whereas Armenia is going to do it next year,” Hovhannisyan said.

Chairman of the Committee on Social Affairs, RA Parliament, Hakob Hakobyan, who is co-author of the bill, urged the MPs to vote for the bill. On the other hand, shares the opinion on the shadow labor market in Armenia. “Many thousand people are working in Armenia in the shadow. Just ask them if they are ready to defend their rights for brilliant future, they will hardly say ‘yes’,” Hakobyan said.

He also said that, if the draft amendments are adopted, pension rates will reach 40% of the wages. The new law will apply to people aged 40 and over.