Armenian PM Tigran Sargsyan: "New pension reforms aim to change the population's motivation and attitude to the pension system, making people responsible for their secure future."

The Government-proposed three level pension system is expected to make risk management procedures more effective, Prime Minister Tigran Sargsyan said.

Speaking at a conference devoted to pension reforms in Armenia, the premier said the new system has to reflect global developments, providing a forecast of the world's economic and financial outlook in 30 years' time.

"The first key principle of the pension reforms is the basic system which requires financial guarantees by the state. The second principle is based upon the mandatory system expected to ensure a life of dignity, and the voluntary cumulative system," Sargsyan said, adding that the reforms aim to change the population's motivation and attitude to the pension system, making people responsible for their secure future. 

Highlighting the importance of informing the public of the system, the premier said the Government has to create financial infrastructures to ensure the implementation of the reforms.

"We are creating an environment for free-minded people to promote their free thinking, but at the same time we also remember our pensioners. We did really suffer the impact of the crisis, a period when the government not only fulfilled its obligations but also managed to increase benefits and pensions," the premier said, promising to follow that the monthly payments for the elderly and socially disadvantaged go up further beginning January. 

Sargsyan noted that the reforms helped reveal the gaps in the previous system, allowing the government to save several billions of drams and reducing the corruption risks.