To provide additional income to participants of FPS pension funds invest in various financial instruments

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.