Hakobian: Several provisions are unconstitutional, not whole law

The Constitutional Law recognized as unconstitutional a number of provisions of the Law on the Compulsory Accumulative Pension System, but the not whole law, Chairman of the National Assembly Standing Committee on Social Affairs Hakob Hakobian told reporters.

“I was and continue to be in favor of this law. A number of provisions, rather than the law, are unconstitutional,” Hakobian said.

The Constitutional Court of Armenia today recognized as unconstitutional a number of provisions of the Law on Compulsory Accumulative Pension System.

The CC Chairman Gagik Harutyunian read the court decision saying that the use of the compulsory component restricts the application of a number of articles of the Armenian Constitution, in particular, the protection of the right of property. Besides, the law does not take into account the requirements to ensure the minimum consumer basket.

The decision takes effect upon its publication.

The Constitutional Court of Armenia ruled that the parliament and the government shall bring the law into line with the decision’s requirements by September 30, 2014.

The law took effect on January 1, 2014. It applies to Armenian citizens born after January 1, 1974. Under the law, employees have to pay 5% of their monthly salaries to a pension fund, and the state shall pay another 5%, but no more than 25,000 drams ($61).