ArmInfo. To ensure additional income for participants of the funding pension system (FPS), pension fund managers invest in various financial instruments - bonds, deposits, shares, etc.
According to the press service of the Center of Informing of Pension System, in order to provide additional security for the funds, the law sets certain restrictions, in particular in the context of geography, investment and currency.
According to the source, invested funds in foreign currency cannot exceed 40% of the accumulation fund. "This means that at least 60% is invested in national currency to stimulate the economy of Armenia," the Center said in an official statement. In addition, in foreign currency, investments can be made only in OECD and EU member countries, in view of the stability of capital markets, which are safer for the realization of such investments.
The main precondition for the success of the funded system is the policy of investment by accumulated funds, and from this point of view the Armenian legislation is quite rigid, but at the same time it enables pension fund managers to conduct diversified investments and provide the best possible results for the FPS participants.
A multi-step accumulative pension system (NPS), mandatory for persons born after January 1, 1974 (for citizens born before January 1, 1974 there is a distribution pension system) introduced in Armenia from January 1, 2014. The Constitutional Court of Armenia in the same year on January 25 decided to suspend the Law "On funded pensions" until the issue of constitutionality of a number of its provisions is resolved. But in February 2017, amendments to the law "On Mandatory Pensions" were already submitted to the National Assembly of the Republic of Armenia, which were approved on March 1. The application of the mandatory component of funded pension for all Armenian citizens born after January 1, 1974, will come into force on July 1, 2018. Voluntarily joining the accumulative pension system (NPS) until July 1, 2018, citizens will be able to receive pensions from two components - funded and mandatory.
