Pension reforms are ‘absolute nonsense:’ Hrant Bagratyan

Speaking at a news conference today, Armenia’s former Prime Minister Hrant Bagratyan described the current pension reforms as “absolute nonsense.”

“Such reform was mainly based on the former Soviet system, when the working generation paid for the elderly who no longer worked. But now the principle has changed; everyone has to work for his future pension,” he noted.

Mr Bagratyan also introduced his calculations of the cumulative pension system. According to him, an income of $300 million USD will be generated due to the sums paid by those employed and an equal sum will be generated due to state allocations.

“It makes 600 million. They already export $1 billion USD, so are they going to export that 600 million too?”

Mr. Bagratyan introduced HAK’s scheme which proposed that pension deductions from monthly salaries include the taxes as well. And most importantly, the payments by employers should form part of pensions.

Touching upon the issue why the pension reforms are being postponed for several years running, the former premier explained that by the authorities’ inability to realize the plan.

“They are unable to bring those reforms to life,” said he, adding that the authorities don’t even have the courage to say that they have erred.