YEREVAN. - If the participants of the Armenian accumulative pension system accumulate 19.2 mln AMD ($39,000) by the age of 55, they will be able to retire at the age of 55.
Karen Hakobyan, Head of Securities Market Regulation Division at Central Bank of Armenia (CBA), said the aforementioned at the press-conference held by the Economic Journalists Club today.
In his words, this amount was determined on the basis of that of basic pension, 16,000 AMD.
The change in the basic pension can impact the required pension capital. In all the other cases, a citizen retires at the age of 63.
According to Hakobyan, the decision of the Constitutional Court of Armenia made in 2014 has alleviated the severity of a number of system requirements. Thus, according to the original version, if the participant of the pension system didn’t live up to the pension, his heirs could receive his accumulations only on their own accumulative accounts, from where they wouldn’t be able to take them out until their own retirement.
After the Constitutional Court decision, the heirs have been entitled to freely dispose of these amounts. Besides, the original document didn’t include any provision on the accumulative payments to mothers who take a 2-year maternity leave. Currently, the employer and the state must pay 3,000 5,000 AMD for it respectively. That is, although no deductions are made from mothers on a maternity leave, 8,000 AMD is accrued to their accumulative account every month.
The accumulative system includes people who were below 40 as of the system launch (i.e. those born on 1 January 1974). It will become obligatory for everyone since 1 July 2017. Currently, it’s mandatorily used only in the public sector.
