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PENSION REFORM: SMALL VICTORY FOR OPPONENTS, BUT UNCLEAR PATH AHEAD
http://armenianow.com/society/pensions/53747/armenia_pension_reform_serzh_sargsyan_demam_armeni a_constitutional_court
PENSIONS | 18.04.14 | 16:28
By SARA KHOJOYAN
ArmeniaNow reporter
The public's fight against the mandatory deduction component of the new
law on pensions appears to have seen a small victory. The Government
is preparing a project to release sanctions against employers who
have failed to make salary deductions according to the law which the
Constitutional Court has said does not meet constitutional standards.
The executive body announced Thursday evening that measures must be
taken to drop sanctions against employers before thinking of making
changes following the Constitutional Court's decision on April 2 about
"Accumulative Pension system". The project that would free employers
from making mandatory deductions is anticipated for discussion in
the National Assembly April 28.
Meanwhile, the Armenian pressure group campaigning against pension
reforms is preparing another strike in front of the president's
residence. At its rally on April 12 the group demanded that President
Serzh Sargsyan follow the Constitution. This happened after the
Constitutional Court had found some provisions of the pension reform
law anti-constitutional.
"What's being done now should have been done long ago. The ex-PM was
supposed to have done it," David Manukyan, Dem.am team member told
ArmeniaNow, adding that this happened as a result of public pressure.
"Just dropping sanctions is not enough," Manukyan added. "Not only
the sanctions must be dropped, but the style of electronic report
made for the Revenue Committee must be amended. The pension fund
payment field must not be automated."
For the government not to contradict its own position, according
to which pension reforms will continue and that pension funds must
be paid till September 30, as Manukyan put it, they must officially
announce clearly that "the employers can transfer pension fund payments
only for the citizens who will agree in written form to take part in
that system."
"This is the very demand in the Court decision - a person must be
able to express his/her will," says Manukyan.
And before Manukyan and his friends expect practical results from the
government, there are opinions that after September 30 the executive
may turn the pension fund payments into a taxation system.
"If the government doesn't refuse the mandatory component, a further
possible development of this act is mandatory social payments, which
might be implied upon employers and employees, the state will have
its participation as well. This is, in fact, a tax of a kind," said
Armenak Chatinyan, Civilnet economic analyst and added that in this
case the conditions worsen for the public and they cannot legally
complain against this.
http://armenianow.com/society/pensions/53747/armenia_pension_reform_serzh_sargsyan_demam_armeni a_constitutional_court
PENSIONS | 18.04.14 | 16:28
By SARA KHOJOYAN
ArmeniaNow reporter
The public's fight against the mandatory deduction component of the new
law on pensions appears to have seen a small victory. The Government
is preparing a project to release sanctions against employers who
have failed to make salary deductions according to the law which the
Constitutional Court has said does not meet constitutional standards.
The executive body announced Thursday evening that measures must be
taken to drop sanctions against employers before thinking of making
changes following the Constitutional Court's decision on April 2 about
"Accumulative Pension system". The project that would free employers
from making mandatory deductions is anticipated for discussion in
the National Assembly April 28.
Meanwhile, the Armenian pressure group campaigning against pension
reforms is preparing another strike in front of the president's
residence. At its rally on April 12 the group demanded that President
Serzh Sargsyan follow the Constitution. This happened after the
Constitutional Court had found some provisions of the pension reform
law anti-constitutional.
"What's being done now should have been done long ago. The ex-PM was
supposed to have done it," David Manukyan, Dem.am team member told
ArmeniaNow, adding that this happened as a result of public pressure.
"Just dropping sanctions is not enough," Manukyan added. "Not only
the sanctions must be dropped, but the style of electronic report
made for the Revenue Committee must be amended. The pension fund
payment field must not be automated."
For the government not to contradict its own position, according
to which pension reforms will continue and that pension funds must
be paid till September 30, as Manukyan put it, they must officially
announce clearly that "the employers can transfer pension fund payments
only for the citizens who will agree in written form to take part in
that system."
"This is the very demand in the Court decision - a person must be
able to express his/her will," says Manukyan.
And before Manukyan and his friends expect practical results from the
government, there are opinions that after September 30 the executive
may turn the pension fund payments into a taxation system.
"If the government doesn't refuse the mandatory component, a further
possible development of this act is mandatory social payments, which
might be implied upon employers and employees, the state will have
its participation as well. This is, in fact, a tax of a kind," said
Armenak Chatinyan, Civilnet economic analyst and added that in this
case the conditions worsen for the public and they cannot legally
complain against this.