Compulsory component to be replaced by target social benefits
At a special session on Tuesday, the Armenian government approved bills on making amendments to a number of laws, including the Law on Accumulative Pension, the government press service reported.
According to the bill, the compulsory component of the accumulative pension system will be replaced by target social benefits equal to 5% of the monthly salary. The new system is expected to be introduced from July 1, 2014. It will be first used in the government sector and later will involve the private sector, where it will be used on a voluntary basis. It is proposed not to deduct the social benefit in case the monthly salary exceeds AMD 500,000.