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Funded Pension System
Starting from 2014 year new Funded Pension System will operate in Armenia.
Participants of new Funded Pension System are hired employees, notaries and individual entrepreneurs, born on January 1, 1974 and later.
According to the contract signed between the RA Government and the Central Depository of Armenia OJSC, the Depository will keep the registry of Mandatory Funded Pension System participants and perform custody of pension fund assets, according to the Legislation.
The Depository's services to pension system participants will be intermediated by Account operators. The list of companies, which currently act as Account operators according to the contract signed with Depository, is available here.
Participants will be able to manage their pension accounts through Account operators or "My Account" system, including submission of applications for selecting pension fund, pension fund manager and other applications, as well as receive information about operations, related to pension account.
The participant has right to reject ownership of pension units obtained for him as well as accept ownership of pension fund units later. If the person doesn't reject ownership of pension units it is assumed that the person accepts the ownership of pension units.
To reject ownership of pension fund units participant shall submit "Application for rejecting/ accepting ownership of mandatory pension fund units" to Depository through Account operators or "My Account" system, in this way rejecting ownership of units. Submission of the application doesn't relieve participant of his obligation to make funded contributions.
When participant rejects ownership of pension fund units pension units are transferred to the State, at the same time the State continues to make funded contributions and obtain units the ownership right of which belongs to the State.
Participant who has rejected ownership of mandatory pension fund units can anytime submit application to accept ownership of pension units. In this case participant shall also submit "Application for rejecting/ accepting ownership of mandatory pension fund units" to Depository through Account operators or "My Account" system, in this way accepting ownership of units.
Participant can use his right to reject ownership of pension fund units and later accept ownership of that units only one time.
Additional information about pension reform in Armenia is available on the following web-sites:
Pension system awareness center - www.epension.am.
ABC finance - www.abcfinance.am