Wednesday, March 1 2017 14:52
Alexandr Avanesov

Central Bank: Efficiency of compulsory funded pension system management in Armenia to be improved

Central Bank: Efficiency of compulsory funded pension system  management in Armenia to be improved

ArmInfo. On March 1, the  National Assembly of Armenia adopted the draft amendments to the Law  "On Compulsory Funded Pension" in the second and final reading.  

Deputy Chairman of the Central Bank of Armenia Nerses Yeritsyan said  that the draft amendments aim to enhance the efficiency of the  compulsory funded pension system management and to increase its  transparency. In particular, the draft law regulates the process of  compensating for the damage received by the participants of the  pension funds. It also expands and toughens the responsibilities of  the managers of these funds.  The persons with high incomes, who have  already made sure of the efficiency of the funded pension system, are  allowed to voluntarily continue their participation in the system by  paying 10% of their salaries (otherwise, the current 5% rate will be  applied).  The managers of the funds will get an opportunity to  invest 10% (versus the current 2%) of all assets in venture and  private funds. This will make it possible to finance the highly-  productive sectors of industry. The draft law also envisages  enhancement of transparency of the funds. At present, an individual  has an opportunity to apply to the funds for accountability once a  year.  Under the amendments, it is possible to apply for annual  reports at any moment via electronic means. In addition, the citizens  of Armenia, who participate in foreign funded pension funds will be  able to transfer their money to the funds in Armenia and to manage  them.

Earlier, ArmInfo reported, citing the Central Bank that within  mandatory funded pension system the number of participants of the two  pension funds-C-QUADRAT Ampega Asset Management Armenia and  Amundi-ACBA- Asset-Management reached 155 thousand people by November  1, 2016. 65 thousand of them are representatives of state sector and  remaining 90 thousand of private sector. The press-service of the  Armenia's Central Bank has told ArmInfo that from the moment of  creation of these two funds (November 2013) their yield has reached  25.9% (the cost of one common share has grew from 1000 to 1259  drams). For the 10 months of 2016 yield of the pension funds totaled  annual average 14.4%. According to the source, as of November 1 2016  the abovementioned funds accumulated 57.2 bln drams, 29% of which or  17 bln drams are deposits in banks, 5% or 2.8 bln are invested in  bonds of corporate, mortgage and international organizations, 41% or  23.3 bln in state bonds, 25% or 14.1 bln in securities of foreign  investment funds (ETF - Exchanged traded funds, including stocks of  such companies as Apple, Google, Microsoft, Nestle, Toyota, Nissan,  Sony, Coca-Cola etc., as well as US state bonds and Gold mining fund  securities). HayPost, Araratbank, Ardshinbank, HSBC Bank (Armenia),  INECOBANK, Converse Bank, Armbusinessbank and VTB Bank (Armenia) are  pension account operators. Citizens can receive information about the  funds on their account via epension.am website, identification card,  as well as through ATMs of ArCa network.

To note, in November 2013 the Armenian Central Bank (CB) registered  the pension funds C-QUADRAT Ampega Asset Management Armenia and  Amundi-ACBA- Asset- Management.  The shareholders of Amundi- ACBA  Asset Management Armenia CJSC (registered by CB of Armenia on 19  November) are Amundi Asset Management with 51% shares and ACBA-Credit  Agricole Bank with 49% shares. French Amundi manages $5 trillion  assets. "C-QUADRAT Ampega Asset Management Armenia" received the CB  license on 29 November 2013. 74.9% shares of "C-QUADRAT Ampega Asset  Management Armenia" are owned by C- QUADRAT Investment and 25.1% by  German Talanx Asset Management GmbH. The group manages $130 bln  assets.

These companies offer three strategies of investment: fixed yield  pension fund (FIX), conservative pension fund (CON) and Balanced  pension fund (BAL). The customers are free to choose one of the given  strategies. In particular, the pension fund with sustainable income  implies investments of the 100% package of a customer in the debt  obligations with fixed yield (government bonds and deposits of highly  reliable banks) to avoid risks. The conservative fund implies  investment of 75% of a customer package in the debt obligations with  fixed yield and the remaining 25% in equity securities (shares).   Unlike the first two funds, the balanced fund implies equal  distribution of funds (50%/50%) in the debt obligations with fixed  yield and shares where a beneficiary must know about the risk  connected with fall of stock prices depending on the market condition  and the state of the issuing company.

To recall, the compulsory accumulative pension system was introduced  in Armenia on January 1 2014 and applies to the citizens born after  Jan 1 1974. According to the new law on Accumulated pensions, the  minimal pension in the country will be equal to the minimum wage,  while the basic pension will total 150% of the minimum wage. Starting  Jan 1 2014, 5% of citizens' salaries have been transferred to their  personal accumulative accounts. The government will transfer a  similar amount (but no more than 25,000 drams).

POST A COMMENT
Input digits     


News
Annual inflation in Armenia in September amounted to 0.6%Annual inflation in Armenia in September amounted to 0.6%
Armenian startups will have the opportunity to receive investments  from the foundation of the legendary Argentine footballer Lionel  MessiArmenian startups will have the opportunity to receive investments  from the foundation of the legendary Argentine footballer Lionel  Messi
More and more young people in Armenia dreaming of becoming nuclear  engineers More and more young people in Armenia dreaming of becoming nuclear  engineers 
Armenia improves its position in Global Innovation Index -2024Armenia improves its position in Global Innovation Index -2024
Ameriabank’s Special Offer for New Mastercard Holders.  1% Cashback and Lots of GiftsAmeriabank’s Special Offer for New Mastercard Holders. 1% Cashback and Lots of Gifts
Double-digit growth of import prices observed in Armenia`s foreign  tradeDouble-digit growth of import prices observed in Armenia`s foreign  trade
532.5mln transactions worth a total of AMD 9,782.7bln  effected in  Armenia in Jan-Sept 2024532.5mln transactions worth a total of AMD 9,782.7bln  effected in  Armenia in Jan-Sept 2024
We are conservative in making forecasts - ADB We are conservative in making forecasts - ADB 
Armenia takes over chairmanship of coordinating council of CIS  financial supervision bodies Armenia takes over chairmanship of coordinating council of CIS  financial supervision bodies 
Bakhytjan Sagintayev: Since the formation of the EAEU, the Union`s  foreign trade grown by 60%Bakhytjan Sagintayev: Since the formation of the EAEU, the Union`s  foreign trade grown by 60%
Cryptocurrency actively and uncontrollably cashed in ArmeniaCryptocurrency actively and uncontrollably cashed in Armenia
Armenia`s first regional landfill to be completed in HrazdanArmenia`s first regional landfill to be completed in Hrazdan
Mohammad Reza Aref: Iran is ready to play a more serious role in the  EAEUMohammad Reza Aref: Iran is ready to play a more serious role in the  EAEU
Mishustin: It is important to create single transport space, develop  international logistics corridors and establish appropriate  infrastructureMishustin: It is important to create single transport space, develop  international logistics corridors and establish appropriate  infrastructure
EEC to sign joint action plan with Uzbekistan for 2024-2026EEC to sign joint action plan with Uzbekistan for 2024-2026
RA government proposes granting new functions to Military-Industrial  CommitteeRA government proposes granting new functions to Military-Industrial  Committee
Next year `super-ambitious` for Armenia - expertNext year `super-ambitious` for Armenia - expert
EEC head presents Digital Union concept EEC head presents Digital Union concept 
EDB managing director on bank`s role in improved connectivity of  Eurasian nations EDB managing director on bank`s role in improved connectivity of  Eurasian nations 
Concept of trusted data storage central place in philosophy of  Armenia`s digital transformation - premier Concept of trusted data storage central place in philosophy of  Armenia`s digital transformation - premier 
EEC minister, heads of statistical services discuss cooperation EEC minister, heads of statistical services discuss cooperation 
Armenia-Georgia high-voltage line to be ready for operation in four  years - official Armenia-Georgia high-voltage line to be ready for operation in four  years - official 
Armenia could generate more energy for export - official Armenia could generate more energy for export - official 
Idram Junior and Koreez Summarize the Results of the Junius Financial Education CompetitionIdram Junior and Koreez Summarize the Results of the Junius Financial Education Competition
Vardan Janyan: We entering the second copper-bronze ageVardan Janyan: We entering the second copper-bronze age
Vardan Janyan: Despite its significant contribution to economic  development and tax base, Armenia`s mining industry stagnating since  2014-2015Vardan Janyan: Despite its significant contribution to economic  development and tax base, Armenia`s mining industry stagnating since  2014-2015
ZMMK CEO: Transition metals are new gas and oil for countries like  ArmeniaZMMK CEO: Transition metals are new gas and oil for countries like  Armenia
Armenia`s international reserves decreased by 14.6% annually by  September 2024, falling to $3.605 billionArmenia`s international reserves decreased by 14.6% annually by  September 2024, falling to $3.605 billion
The American Competitiveness Exchange (ACE Armenia) program launched  in ArmeniaThe American Competitiveness Exchange (ACE Armenia) program launched  in Armenia
Armenia`s defense budget to be increased 20% next year Armenia`s defense budget to be increased 20% next year 
Iran eases entry of vehicles from Armenia Iran eases entry of vehicles from Armenia 
90% of mutual trade within EAEU in national currencies - Bakhyt  Sultanov90% of mutual trade within EAEU in national currencies - Bakhyt  Sultanov
EEC hopes for formation of common exchange market by 2030EEC hopes for formation of common exchange market by 2030
7.3% increase in Armenia`s agricultural trade with EAEU member-states 7.3% increase in Armenia`s agricultural trade with EAEU member-states 
EAEU ministers of agriculture to meet in Yerevan EAEU ministers of agriculture to meet in Yerevan 
Armenian-Iranian substation Noravan to be completely equipped next yearArmenian-Iranian substation Noravan to be completely equipped next year
USD, EUR transactions up, RUB ones down in in Armenia`s interbank foreign exchange market Sept 23 to 27USD, EUR transactions up, RUB ones down in in Armenia`s interbank foreign exchange market Sept 23 to 27
Tourism development with support of WB discussed in YerevanTourism development with support of WB discussed in Yerevan
The Komitas Museum-Institute, with the support of the MESCS of the Republic of Armenia and Ardshinbank, opened the exhibition The Komitas Museum-Institute, with the support of the MESCS of the Republic of Armenia and Ardshinbank, opened the exhibition "Paris Meetings".
SRC: as of September 27, balance of preferential import of electric vehicles into the territory  of Armenia is 454 unitsSRC: as of September 27, balance of preferential import of electric vehicles into the territory  of Armenia is 454 units
IMF mission head appreciates Armenian authorities` efforts to reduce  cash turnover of financial resourcesIMF mission head appreciates Armenian authorities` efforts to reduce cash turnover of financial resources
Capital development discussed with Amundi-ACBACapital development discussed with Amundi-ACBA
AMD 17.2bln shadow turnover exposed in three months
700-space parking lot for heavy-duty vehicles to be built at Upper  Lars checkpoint 700-space parking lot for heavy-duty vehicles to be built at Upper Lars checkpoint
Conference Conference "10 years of the EAEU" to be held in Yerevan
Experience comfortable traveling with IDBank premium cardsExperience comfortable traveling with IDBank premium cards
In 2024 and in the medium term, economic growth to be driven  primarily by growth of services sector - Draft budget of the Republic  of Armenia for 2025In 2024 and in the medium term, economic growth to be driven  primarily by growth of services sector - Draft budget of the Republic  of Armenia for 2025
Ameriabank: Partner of the international technology conference EMERGEAmeriabank: Partner of the international technology conference EMERGE
 U.S. Government to increase grant assistance to Armenia by $130  million, to reach $250 million U.S. Government to increase grant assistance to Armenia by $130  million, to reach $250 million
Armenian Airlines launches Yerevan-Volgograd-Yerevan flights Armenian Airlines launches Yerevan-Volgograd-Yerevan flights 
Armenia`s government approves 2025 draft budget Armenia`s government approves 2025 draft budget 
USAID working with U.S. Congress, U.S. State Department to provide  $20 million to Armenia to support cybersecurity, border and energy  security, and to increase country`s resilience - Samantha Power USAID working with U.S. Congress, U.S. State Department to provide  $20 million to Armenia to support cybersecurity, border and energy  security, and to increase country`s resilience - Samantha Power 
In Armenia, industrial price index continues to rise amid  double-digit growth in industrial productionIn Armenia, industrial price index continues to rise amid  double-digit growth in industrial production
Minimum insurance requirements for passengers, flight and service  personnel to be established for all air carriers in ArmeniaMinimum insurance requirements for passengers, flight and service  personnel to be established for all air carriers in Armenia
American company invests AMD 5.5 bln in modernization of Vorotan HPP  cascadeAmerican company invests AMD 5.5 bln in modernization of Vorotan HPP  cascade
Even if you don`t become a member, you can still take advantage of  the opportunities: Tunyan on Armenia`s prospects in BRICSEven if you don`t become a member, you can still take advantage of  the opportunities: Tunyan on Armenia`s prospects in BRICS
Purchase of gas from Azerbaijan is in the interests of Armenia -  Babken TunyanPurchase of gas from Azerbaijan is in the interests of Armenia -  Babken Tunyan
UATE, CSIE to combine effors to attract international experts to  Armenia`s high-tech sector UATE, CSIE to combine effors to attract international experts to  Armenia`s high-tech sector 
ILO initiatives to ensure employment of forcibly displaced discussed  in Armenia ILO initiatives to ensure employment of forcibly displaced discussed  in Armenia 
35 startups from Armenian Diaspora take part in Neruzh 5.0 program 35 startups from Armenian Diaspora take part in Neruzh 5.0 program 
Read more
Exchange rates
03.10.2024
RUB4.07-0.03
USD387.05-0.13
EUR427.46-0.99
GBP507.73-6.33
CAD286.03-1.15
JPY26.36-0.38
CNY55.15-0.01
CHF455.25-1.17