Pensions as important as cars and flats – Armenian MP

Hakob Hakobyan, Chairman of the Standing Committee on Social Affairs, Parliament of Armenia, who headed the ad hoc commission set up to draft a bill on the pension accumulation system, commented on the complains about the system in an interview with Tert.am.

Specifically, he spoke of the bank loans at an annual interest rate of 24%.

“Pensions are as important as cars and flats,” he says.

- Mr Hakobyan, the bill was adopted more than a year ago, but it has caused complaints now. What is the reason for that?

- The bill was adopted on December 22, 2012. We gave two years for raising public awareness. On the other hand, the government and the Central Bank needed time to sign contracts with managers. With respect to the complaints, I think they are not well-informed. Complainers are mostly highly-paid, as well as young people involved in the system. I have repeatedly said: a total of AMD 20 billion will only be transferred to accumulation accounts in 2014. The funds will not be used to raise our parents’ pensions nor will our own salaries be raised. The funds are intended for our young people to receive pensions in the future.

- People say they are not confident in the future in a country like Armenia, especially when we speak of a 30-year period.

- It is not a matter of confidence in the law on the accumulation system. A referendum was recently held in many countries and people expressed their confidence in the foreseeable future. For example, 83% of the Chinese are confident in their country’s future, and China proved to be the leader. That is it is a matter of confidence as such.

- Yes, it is a matter of confidence in the government. Do you think a public opinion poll should have been conducted before the bill was adopted? Do people believe they will get their money back in 30 years?

- There was no need. The bill guarantees the payment. We say that the money invested by the citizens is their property. They can get it back in 30 years, with inflation considered.

- Still, political confidence is in question. Can you assure people?

- Fund management is nonpolitical.

- Some people say that Armenia may become part of Russia in the course of time.

- What is the difference part of which country Armenia may become? According to law, money is paid back when the pension age comes.

- People say they have no spare money. They borrow loans to pay debts for cars and flats.

- Pensions are as important as cars and flats.

- People say they can save money, even by buying gold. And it is a more reliable way of saving money than 30-year-long expectations.

- It happens not only in Armenia. You can hardly find a person in the world that would think of pension before 50. As a rule, people start thinking of it when they are over 50.