Constitutional Court Decision Does Not Exempt Employees From Making Mandatory Pension Contributions

The Jan. 24, 2014 ruling of Armenia's Constitutional Court to suspend certain articles of the Law on Accumulated Pensions does not exempt those to whom the law applied from the obligation to make mandatory pension contributions, reads a statement [AM] issued by the Central Bank of Armenia today.

"The Central Bank states that the provisions relating to the obligation to pay pension contributions are not suspended and reminds [the public] that the constitutionality of these provisions are still in the dispute stage. Thus, the Central Bank urges [the public] to refrain from various interpretations of the Constitutional Court's decision, since if the disputed provisions are recognized as corresponding to the RA Constitution, the consequences for participants of the accumulated pension component perhaps will be more severe and will lead to an obligation to make a single contribution for the missed period," reads the statement, in part. 

The Central Bank further reports that the its acts ensuring the implementation of the repealed provisions of the law do not interfere with the RA Constitutional Court's decision, thus the Central Bank does not currently need to take measures arising from the suspension of the disputed provisions.