Artem Asatryan: AMD 80 billion drams accumulated in Armenia within the framework of ONPS

ArmInfo. At present, the number of  participants in the Compulsory Accumulative Pension System (ONPS) has  exceeded 180 thousand people. Most of them are representatives of the  private sector. This was stated on October 2 at a press conference by  the Minister of Labor and Social Affairs of Armenia Artem Asatryan.

According to the Minister, as of today, 80 billion drams have been  accumulated in management companies within Armenia. Based on the  results of three years, as a result of the work done in the direction  of assessing the effectiveness of management, the funds increased by  about 32%, which, according to the minister, is a fairly good  indicator. "The specified amount is introduced into the relevant  instruments and their return is guaranteed by law," stressed the head  of the Ministry of Labor and Social Protection.

It should be noted that the Government of Armenia in its new program  for 2017-2022 envisages, together with the Central Bank, to take  steps to increase the availability of financial instruments and the  formation of long-term pension savings, the infusion of which into  the real sector will stimulate economic development and increase  investment. In particular, the Government provides for the end of  2018, together with the Central Bank, to develop a capital market  development program aimed at encouraging the issuance of shares and  bonds by local companies. Until the end of 2019, the Government  envisages, together with the Central Bank, through the necessary  right regulation, to increase the availability of financial services.  Until the end of 2020, to expand the pension savings system, the  Government together with the Central Bank will develop a medium-term  program for the development of the insurance market aimed at  introducing new insurance instruments and launching life insurance.

It should be recalled that since January 1, 2014, a multi-step  accumulative pension system has been introduced in Armenia, mandatory  for people born after January 1, 1974 (for citizens born before  January 1, 1974 there is a distribution pension system). According to  the new law of the Republic of Armenia "On funded pensions," the  basic minimum pension will be equal to the subsistence minimum, and  the basic pension will be 150% of the subsistence minimum. The  monthly mandatory payments will make 5% of the salary, 5%, but not  more than 25 thousand drams, and for entrepreneurs 300 thousand  drams, the savings account will be contributed by the state.

In Armenia, under the mandatory funded pension system, there are two  pension funds - CJSC Amundi- ACBA Asset Management (since November  19, 2013) and LLC Cse-Kvadrat Ampega Asset Management Armenia (since  November 29, 2013). The shareholders of ZAO Amundi-ACBA Asset  Management are a French company - 51% and ACBA-Credit Agricole Bank -  49%. Shareholders of LLC "Tse-Kvadrat Ampega Asset Management  Armenia" are the Austrian investment company C-QUADRAT Investment AG  - 74.9% and the German company Talanx Asset Management GmbH - 25.1%.  Members of the funded pension system (NPS) can regularly receive  information on the accumulated amount on their pension account  through the Internet, www.epension.am website, account operators and  ATMs.