Yerevan/Mediamax/. Armenian government provided for the institute of 100% guarantee of pension asset safety, Deputy Minister of Finance of Armenia Vardan Aramyan stated today.

Mediamax reports Vardan Aramyan saying that to this end a Fund for Guaranteeing Pension Assets (similar to the Deposit Guarantee Fund) will be set up, functioning at the expense of deductions from pension funds and guaranteeing 20% of the means.

“The remaining 80% of the assets will be guaranteed by the state”, Vardan Aramyan stated.

He informed that according to the package of draft laws on pension reform, approved in the first reading, the state will guarantee also the solvency of the accumulated means, annually adding percentage at the volume of annual inflation to the accumulated sum of citizens.

“Transition to progressing income tax is also related to implementation of the accumulative component. According to it, the income tax and social payments are united into a single income tax since 2011, making 24% (for citizens with the salary up to 100 thousand AMD) and 26% (for citizens with the salary exceeding 100 thousand AMD)”, Deputy Minister of Finance stated.

He also informed that the sums, which since 2011 to 2014 are voluntarily remitted by employers to pension funds, will be considered expenses and will be deduced during calculation of the profit tax, and this will encourage transition of the private sector to the accumulative model.

The voluntary accumulative system will be functioning in Armenia from 2011, and the compulsory one (for citizens below 40) – since 2014. At present, the volume of social pension in Armenia makes 8000 AMD (since November, 2010, - 10 500 AMD). For citizens with over 5 years of seniority, 450 AMD is added to the minimum volume of pension for each year of work.