The parliament of Armenia adopted Pension Law


On May 15, the National Assembly of the Republic of Armenia in the second and final reading adopted in full the draft law on Making Amendments and Supplements to the Law on Cumulative Pension proposed by the Government of RA.

The votes divided as follows: For: 67; Against:18; Abstained: 29. Only the Republican Party voted for the adoption, “Prosperous Armenia” and “Armenian Revolutionary Federation” parties abstained, “Heritage” party, “Armenian National Congress” and “Rule of Law” (Orinats Yerkir) parties voted against the draft, except for Hrant Bagratyan, who abstained.

According to the amendments the opinion of employees is taken into account when cumulative deposits are withheld. These amendments are legally binding from January 1, 2014, i.e. have a retroactive effect.

In case a person doesn’t want to join the system and make transfers to pension funds he/she has to send by post or hand in in person a respective letter addressed to his/her employer. In case the employer doesn’t get such a letter he/she is obliged to calculate and transfer the cumulative deposits.

It is to be recalled that non dominant parties consider this approach to be unconstitutional and proposed the reverse option, when a person presents the letter of agreement only if he/she wants to join the cumulative system.

According to the new amendments, Article 76 which introduced responsibility for not making payments or delays in payments ceased to be in force.