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Government Approves Pension Hike

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  • Government Approves Pension Hike

    GOVERNMENT APPROVES PENSION HIKE
    By Irina Hovannisian

    Radio Liberty, Czech Rep.
    Aug 30 2007

    In a move certain to be linked with the approaching presidential
    election, the Armenian government approved on Thursday a 60 percent
    surge in modest pensions paid to hundreds of thousands of elderly
    citizens.

    A government statement said they will receive an average of about
    20,000 drams ($60) per month starting from January 1.

    "The decision did not come all of a sudden," Vazgen Khachikian,
    director of the state pension fund, told RFE/RL. He said Prime Minister
    Serzh Sarkisian's coalition cabinet envisaged the drastic increase
    in its five-year policy program approved by parliament in June.

    The increase will take effect on the eve of the 2008 presidential
    election in which Sarkisian will be a top contender. Pensioners make
    up a considerable part of Armenia's electorate and usually vote in
    large numbers. Pension rises approved by the government until now
    were far more modest.

    Khachikian, who is a member of Sarkisian's Republican Party, insisted
    that the latest measure is not aimed at inducing pensioners to vote
    for the Armenian premier. "There is no need to look for black cats
    in a dark room, especially if they are not there," he said, adding
    that the government plans to gradually raise the average pension to
    at least 36,000 drams by 2012.
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