PM wishes formation of army of thinking, forecasting and responsible people

YEREVAN, DECEMBER 16, ARMENPRESS:

The new accumulative system of pensions will give the citizens an opportunity to ensure their secure old age living, Prime Minister Tigran Sargsyan said at the annual pension conference December 16. "We are changing the civic mentality and their motivation. A working citizen must think that he/she is responsible for his/her future and must make accumulation for his/her secure old age," the prime minister said.

This is the logic put into the basis of pension reforms which coincides with the realities of the contemporary world. "We are creating an environment for free thinking people who must be able to use their freedom. Pension reforms will change the economic and financial mentality in our public," Tigran Sargsyan noted. He said it will result in formation of army of thinking, forecasting and responsible people. The state will create favorable environment and will arm the citizens with knowledge so that they will be able to effectively accumulate their means. "The state will double the savings our citizens will implement through the accumulating system," the head of the government said.

The obligatory accumulating pension system will be applied in Armenia from January 1, 2014. After reforms, the pension insurance system will have three components: basic pension ensured by the state, obligatory accumulating component (5% from the salary of the citizens to be doubled by the state) and voluntary accumulating at their own discretion. The system will be obligatory for the citizens born after 1974 January 1. The voluntary accumulating system operates from January 1 2011.