Pensions in Armenia

One of the biggest concerns for many is the existence of a good pension system in a given country. For Armenia, because the fall of the Soviet Union caused chaos in that particular system, it is still up and coming. Social pension was first introduced in 1990 but reforms over the year have ensured that the current population is taken care of to a degree, while those paying today will be able to reap the benefits when they reach the age of 63/65. Currently, over 17.5% of the population receives social pension, a number expected to increase to 29.1% at this rate by 2050, according to experts. 

As of July 1, 2018, employees of Armenia born after 1973 will be required to pay into the mandatory pension fund, as opposed to the voluntary scheme followed since 2011. They will be contributing:
- 5% of pay, if their monthly earnings are under AMD 500,000 (roughly equal to US$1,040), or
- 10% of pay, less AMD 25,000 (roughly US$52), if their monthly earnings are AMD 500,000 or more — subject to a maximum monthly contribution of AMD 50,000 (roughly US$104).

The accounts will receive matching contributions from the government on pay up to AMD 500,000 per month. These contributions are to be invested with one of two government-approved fund providers: Amundi-ACBA Asset Management and C-QUADRAT Ampega Asset Management.

Currently, there are three components to the pensions:

- State Pension: consists of social and labor, granted to all individuals who reach the age of 63/65, both for laborers and not. This comes out of the State budget.

- Mandatory Funded Pension: This is a return on investment from mandatory funded pensions collected throughout the years.

- Voluntary Funded Pension: Includes all payments of supplementary pension collected over the years from income as we as insurance fees.

From these three pillars, the State Pension system includes labor, military and social components. Pensions are given irrespective of nationality, race, sex, language, religion, political or other views, social origin, property, or other status. Length of service for 1992-2013 is defined by proof of salaries and income tax, while after 2013, through the service record book or similar documents specified by the government.

Pensions are assigned when the citizen writes out an application form. One can be refused a pension if 1.) They are not entitled to it; 2.) They have no permanent residence registered; 3.) They have failed to submit the necessary documentation in a timely manner. The time it takes to receive the pension ranges according to type and if the documents were filed correctly on your part. 
 

Officially, the pension shall be granted: 

1) from the date of submitting the application; 
2) from the date the state authorized body responsible for medical-social expert examinations recognizes the individual as a person with disability, if the application on granting a pension has been filed within three months after such a day; 
3) from the date of death of the breadwinner, if the application on granting a pension has been filed within six months after such a date; and 
4) from the date of retiring from military service, provided the military servant applies for a pension within six months after his or her due retirement.

Labour includes:

Social includes: