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The Constitutional Court of Armenia (CC) has declared invalid a number of provisions of the Law on Accumulative Pensions. At today’s hearing, CC ruled that the provisions declaring the accumulative pension system mandatory are unconstitutional. 

CC Chairman Gagik Harutyunyan noted that the law does not take into account the requirements concerning the minimum consumer basket. Besides, according to him, the compulsory component does not ensure the protection of the citizens’ right to property.

The law that entered into force on January 1, 2014 required that all the Armenian citizens born after January 1, 1974 must transfer 5% of their monthly salaries to a pension fund, with another 5% to be paid by the state.

The new pension law caused discontent of Armenian society, with protests staged against the controversial provisions of the law. Four non-coalition parliamentary factions – ARFD, Armenian National Congress, Prosperous Armenia Party and Heritage – appealed to the Constitutional Court, asking it to examine the constitutionality of the provisions.