THREE-STAGE PENSION SYSTEM
Support A1+!The reformation of the pension system that started in 1999 has entered its practical stage. The government has passed the package of new conceptual approaches to come into force in 2006, Minister of Labor and Social Affairs Aghvan Vardanyan stated during a press conference today.
The acting computing system based on the solidarity of generations, when the employees pay social fee to provide pension, will be replaced with a three-stage system with three constituents. The first one is the state provision of pensions for those, who are unable to earn money, the second is the state accumulative provision, when the pension will be paid out of personal social fees and contributions and the third is the voluntary provision of pensions, when a citizens or employer can allot extra payments to the employees.
Aghvan Vardanyan hopes that the new system will allow smoothing the shortcomings and raising the pensions. Thus if a person gets a salary of 40 thousand AMD his pension makes 20-25% of the sum at present, thanks to the new system the sum will go up to 60-80%.
