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Mandatory Pension Reforms Against Armenian Tradition: MP

Four parliamentary factions — Armenian Revolutionary Federation (ARF-D or Dashnaktsutyun), Armenian National Congress (HAK), Prosperous Armenia (BHK), and Heritage Party—, the initiative "We are against mandatory funded pension" and individual citizens today gathered in Liberty Square and marched toward Armenia's Constitutional Court, where representatives of the parliamentary factions handed over their application.

Recall, the political parties are asking the Court to recognize several provisions of the new Law on Funded Pensions as unconstitutional. In particular, the political parties and the initiative do not agree with the mandatory component of the pension system. 

Before the Constitutional Court makes a decision, the applicants are petitioning the Court to prevent the law's entry into force on Jan. 1, 2014, or at least postpone it until the decision is made. March participants went to the Constitutional Court, chanting, "the last resort is the citizen" and "we are against the funded [pension]". During the march, traffic on Mashtots and Baghramyan avenues was stopped. 

Before the march began, members of political parties gave speeches. BHK MP Naira Zohrabyan urged young people not to be deceived and not to believe that employers will make the pension payments instead of them. ARF-D MP Armen Rustamyan said every legal method should be employed to solve the problem. According to him, this law is against Armenian traditions, since in Armenian families, the young generations must provide for their parents. 

HAK member Vahagn Khachatryan, who also addressed those gathered, said the system that Armenia's authorities are trying to apply doesn't exist in other countries, even in Chile, an example which Armenian authorities often cite. 

Khachatryan welcomed young people's struggle against the mandatory pension system but exhorted them not to shun political solutions to the problem, since "cultured discussions will not yield any results". According to the HAK representative, this is one way for the authorities to collect money and not even the prime minister denies this. "The government will yield only when they see force," he said. 

As explained by RFE/RL's Armenian service: "The bill, effective from January 1, will require Armenians under the age of 40 to pay more social security taxes. The unpopular measure stems from Armenia’s transition to a new system whereby the amount of pensions will depend on workers’ lifelong contributions to pension funds."

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