Tuesday, February 1 2011 10:09
Non-Cash payment of pensions under modernization
ArmInfo. The procedure of non-cash payment of pensions is under modernization in Armenia. The system implies transfer of pensions to a bank account or pension card. Ministry of Labor and Social Affairs of Armenia told ArmInfo banks will provide pension cards to pensioners free of charge and serve them commission free. Non-cash payment of pensions will make it possible for pensioners to manage their funds on the pension account without limitation as to time (at present pensions are paid before the 20th of every month) preliminary agreeing with the bank on the method of dispensing (from card or account).
The source reports that contracts have been signed with 13 banks (Areximbank-GPB Group, ACBA-Credit Agricole Bank, ARARATBANK, Ardshininvestbank, ADB, Converse Bank, Armbusinessbank, Armeconombank, Mellat Bank, Prometey Bank, VTB Bank (Armenia), BTA Bank) and 5 settlement organizations (Adalev Ria, Edram, Quadracom, MEGA PANTERA).
Pensioners can apply to the local pension department to select their bank. Afterwards, a pensioner is required to visit the bank (which has a contract with the ministry) to open an account and get a bankcard. A pensioner is also required to submit a notarized Certificate of Existence once in a year.
The Ministry of Labor and Social Affairs of Armenia reported that the database on pensioners is currently verified and banks and payment and settlement organization are exchanging information to introduce structural procedures.
The data provided to ArmInfo say that VTB Bank (Armenia) will pay pensions through Visa International cards, Ardshininvestbank - Visa and MasterCard, Converse Bank and Unibank - ArCA and Armbusinessbank through Pension Card (the given bank operates on three systems - ArCa, Visa, MasterCard).