Mane Tandilyan proposes to reform the accumulative pension system in  the context of solving demographic problems

ArmInfo.The MSAPS (Multi-Step Accumulative Pension System) in Armenia was initially introduced in the context of solving demographic problems. This was stated by the Minister of Labor and Social Affairs of Armenia Mane Tandilyan at the  meeting with journalists on August 22, summing up the results of the  100-day work. With this in mind, according to Tandilyan, it is  reasonable to reduce accumulative pension payments for citizens who  have large families.

"Why a large family with 3-4 children should make payments in the  same amount as those who do not have children?" -  the Minister  asked. Proceeding from the same considerations, she said, one of the  proposed options for reforming the pension system is to reduce the  accumulative payout from 5% of the salary to 1% for those with three  or more children in the family. In this case, as explained by  Tandilyan, if for today the state co-financing for the rest is 7.5%,  and citizens pay 2.5%, then for this category of working citizens  this ratio will be 1% to 9%.

In addition, according to the minister, the possibility of  establishing cases in which pension savings can be obtained ahead of  schedule, for example, in case of a serious illness, is being  discussed.

Currently, the head of the Ministry of Labor and Social Affairs   refrains to name the terms of implementation of reforms, but assures  that the mandatory pension savings system will be revised, and "at  least improved."

The multi-stage accumulative pension system - mandatory for persons  born after January 1, 1974, was introduced in Armenia from January 1,  2014, and from July 1, 2018, its obligatory component was launched  (for citizens born before January 1, 1974, there is a distribution  pension system). According to the RA Law on funded pensions, the  basic minimum pension will be equal to the subsistence minimum, and  the basic pension will be 150% of the subsistence minimum. By the end  of June, the system participants were about 200 thousand people.  Since July 1, 2018, another 50- 80 thousand beneficiaries are to join  it. A total of 120 billion drams have been accumulated in management  companies, 70% of which have been invested in the economy of the  country: state bonds, mortgage bonds and bank debt securities,  generally aimed at hedging risks for pensioners. The average yield of  these securities in 2017 was 12.8%.

Earlier, on June 21 this year. Minister of Labor and Social Affairs  Mane Tandilyan assured that within the next 2 months a new bill on  the funded pension system will be submitted - the document will  provide for a voluntary component. Following the results of  discussions with the public in the fall, the bill will be submitted  to the parliament.  Already on January 1, 2019, according to her, it  is expected that the new law will be put into effect. Meanwhile,  earlier, on June 12, Mane Tandilyan resigned. Its decision, she  justified a contradiction in the implementation of mandatory funded  pension system with the current Cabinet. She always opposed the MSAPS  in its present form.