Government continues to repeat mistakes in funded pension system (video)

The Armenian government has actually revoked compulsory pension contributions by replacing it with the so-called targeted social payments.

Starting July 1, public sector employees will be forced to make social payments.

“The proposed tax will be charged from employees’ salaries and will not exceed 25,000 drams for employees getting more than 500,000 dram salaries, even if the salary is higher, the state’s contribution will be 25,000 drams,” Armenia’s Minister of Labor and Social Affairs Artem Asatryan said when presenting the proposed changes.

Artsvik Minasyan, a member of the Armenian Revolutionary Federation –Dashnaktsutyun, is amazed at the questionable tactics of the executive body that proposed the so-called targeted social payments as a replacement of the current pension contributions. “They are making a pun and suggesting cosmetic changes. I am so angry that I can say many bad things in their address. What is the difference in the two terms – compulsory contributions or social payments? In fact, nothing has been changed,” Mr Minasyan said adding that the new government did not learn any lessons from the previous one. “They are making the same mistakes which will have bad consequences.”

Levon Zurabyan, Head of the Armenian National Congress (HAK) faction, is not pleased with changes either, although he did not expect anything good from the governmentled by Haovik Abrahamyan. Zurabyan does not doubt that the government will be forced to make concessions under the pressure of the (I am against) civil movement and the four non-governing parties.