Armenia to introduce to cumulative pension system

Under the Armenian government’s decision, starting from January 1, 2011 Armenia will pass to the cumulative pension system,  Vazgen Khachikyan, representative of the Armenian ministry of labor and social affairs, told a press conference in Yerevan.

According to him, this system ensures a monthly payment (5 per cent of salary) to citizens. Another 5 percent will be added to that amount, provided that a wage would not surpass AMD 500,000.

"In this case, the maximum amount paid by the state, will reach AMD 25,000," Khachikyan said.

These funds will be transferred to their personal accounts. Upon reaching the age of 63, the retirement age in Armenia, a citizen can receive the accumulated money.

The pension will be paid monthly. The amount of payment will be calculated based on the accumulated amount and the average life expectancy of citizens.

Today the average life expectancy of men is 70 years, and of women - 76.5 years in Armenia.

/PanARMENIAN.Net/