In the half year- more than 1000 volunteers in funded system (video)
In the half year the number of participants of mandatory funded pension system has increased from 146 thousand to 170 thousand. 100 thousand of them work at a private sector, and 70 thousand – at a state sector. “Every month we have 3-4 thousand new participants. As the system is mandatory for new employees, especially for the private sector, their number is increasing,” Karen Hakobyan, Head of Securities Market Regulation Division at Central Bank of Armenia, told “A1+”. Starting from July, 2018, the system will become mandatory also for private sector employees born after January 1, 1974. Besides state system employees, at present those private sector employees, who were employed after the adoption of the law, every month make mandatory payments, “We have also many participants over 40. More than 1000 people participate on voluntary basis; they were born in 1964-1974. Privilege was set for them by the change of law; if formerly no co-financing was carried out by the state, according to new changes, the state co-finances as much as the person allocates money.” Citizens, who receive up to AMD 500 000 salary, pay 5% of the salary, and those, who receive more than AMD 500 000, pay fixed amount, AMD 25 000. In the half year money gathered in 3 funds governed by 2 international administrators has increased by AMD 1 billion, making up AMD 63 billion, AMD 20 billion of which was allocated to financing of the RA economy, AMD 18 billion to purchase of foreign funds’ securities, “Through these funds, our citizens are able to make use of benefits ensured by international capital market. About AMD 16 billion, about 25% are the deposits in the RA banks, through which, naturally, banks in their turn finance the economy.” Citizens can get the collected money after reaching pension age, 63. Money can be received beforehand in case of serious illness or death. There are also other provisions, which were added last year as a result of changes in the law, “When a citizen turns 55, but he has collected enough means in order to receive normal amount of pension before his death, to say it is meaningful to withdraw that sum, that person can start receiving pension.” In three years the profitability of the money collected in mandatory pension funds has made up 26 percent. In this period inflation has made up 2 percent.
