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IN ARMENIA, IT'S ONE TAXPAYER FOR EVERY PENSIONER
Tert.am
11:30 ~U 16.02.10
The system of working individuals contributing to retirees' pensions
through their taxes doesn't seem to be working effectively in Armenia,
said RA Deputy Minister of Finance Vardan Aramyan at a press conference
yesterday. The current system is resulting in a huge deficit in the
budget, he said.
In an attempt to address this issue, European countries opted to
raise the retirement age, said Aramyan, while Armenia, where each
taxpayer supports one pensioner, is attempting to introduce a new
system whereby taxpayers will have to make additional mandatory
payments into a pension fund.
Whereas taxpayers currently contribute 3% into a pension fund, changes
that will be introduced in 2011 will require taxpayers under the age
of 40 to contribute 5% of their monthly salary into a pension fund.
Though the contribution will continue to be mandatory, taxpayers will
have the option of selecting in which pension fund they'd like to
invest their funds. Taxpayers above 40 will make such contributions
on voluntary basis.
Armenia's finance minister hoped that taxpayers would consider topping
up their pension contribution above the mandatory 5% of their salary.
Tert.am
11:30 ~U 16.02.10
The system of working individuals contributing to retirees' pensions
through their taxes doesn't seem to be working effectively in Armenia,
said RA Deputy Minister of Finance Vardan Aramyan at a press conference
yesterday. The current system is resulting in a huge deficit in the
budget, he said.
In an attempt to address this issue, European countries opted to
raise the retirement age, said Aramyan, while Armenia, where each
taxpayer supports one pensioner, is attempting to introduce a new
system whereby taxpayers will have to make additional mandatory
payments into a pension fund.
Whereas taxpayers currently contribute 3% into a pension fund, changes
that will be introduced in 2011 will require taxpayers under the age
of 40 to contribute 5% of their monthly salary into a pension fund.
Though the contribution will continue to be mandatory, taxpayers will
have the option of selecting in which pension fund they'd like to
invest their funds. Taxpayers above 40 will make such contributions
on voluntary basis.
Armenia's finance minister hoped that taxpayers would consider topping
up their pension contribution above the mandatory 5% of their salary.