2024-06-16 10:45:05
Within the case of a compulsory cumulative pension system, with out asking folks’s opinions, the federal government, by legislation, transfers the accrued funds to non-public fund managers, who make investments the cash within the property (securities) of the Republic of Armenia and different nations, in line with the RA laws and the choices of the central financial institution.
There are two non-public fund managers working in Armenia. they buy varied securities with the cash of unusual residents, which can depreciate as a consequence of financial crises, fluctuations in overseas change charges, chapter of corporations, and many others.
For instance, throughout the first half of 2022, the sums of the members of the obligatory cumulative pension system of the Republic of Armenia had been devalued on account of the autumn within the costs of overseas shares, the costs of overseas and Armenian bonds, in addition to the sharp devaluation of the Armenian dram towards the US greenback and the euro.
In response to Article 49 of the RA Legislation on Cumulative Pensions, the complete quantity of obligatory cumulative funds made by the members, adjusted by annual inflation, is assured. Particularly, the Assure Fund ensures 20 p.c of the return of the accrued sums, and the Republic of Armenia ensures the remaining 80 p.c. That’s, in the event you at present have 1 million drams accrued, half of which you paid, and the opposite half – the state, then the state ensures solely 500 thousand drams adjusted for inflation. You bear the danger of fallacious investments by the fund supervisor, although you neither selected him nor belief him.
Consequently, it seems that the assure of the sums accrued by the participant (adjusted for inflation) may even be made on the expense of the state funds, which is a possible burden for the funds. And taking into consideration that the quantity will enhance over time, the state funds merely will be unable to ensure the residents’ financial savings. In case, in line with the choice of the RA Constitutional Court docket of 2015, the state is obliged to supply ensures for financial savings offered by the state with adjusted inflation.
Let me remind you that as of Might 31, 2022, 98 p.c of the 503 billion dram property of cumulative funds are in conservative funds. The yield of conservative funds, calculated from the start of the yr, made -5.53 p.c. In different phrases, financial savings have decreased, and if we had been to retire now, we might have much less cash for a “good previous age.”
Հեղինակ՝ Economist Suren Parsyan, head of the financial analysis workplace of the ARF Bureau
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