The Government of the Republic of Armenia

Dear Colleagues,

Over the past few days, I took the opportunity to get familiarized with the concerns available in connection with the ongoing pension reform. I have talked to the participants of “I oppose” movement. I have discussed the matter with the parliamentary parties and examined in all detail the reasons provided by them.

I have held consultations with the President of the Republic, as well as with my colleagues from the Republican Party, and I am prepared now to voice those 7 basic clauses which, in my opinion, should be at the heart of the reform process. The above 7 principles are given without any context, and I hope that they will soon become a guideline for combined effort.

Thus:

Pension reform is of vital importance to our country, and we are committed to providing a safe and dignified old age for everyone, regardless of their political affiliation and social standing. Therefore, it should be achieved all together and through joint effort. The pension reform should usher in the victory of all political and social movements, including the Republican Party of Armenia, the Prosperous Armenia Party, the Rule of Law party, the Revolutionary Federation, the Armenian National Congress, the Heritage Party, “I oppose” youth movement, as well as any other social and political organization and individuals.

On April 28, 2014, the National Assembly will consider a bill which, pending the passage of the legislative package concerning the law on funded pension in accordance with the Constitutional Court’s April 2, 2014 ruling, will ban the accrual of fines for failure to make mandatory contributions. People have already named it as the mandatory component’s suspension bill, since at this point it bans the mandatory component, as a matter of fact.

The Constitutional Court’s ruling compels us to amend the package of pension reform. We are bound to have another package by the deadline of September 30, 2014 to match the Constitution and be acceptable to broad layers of society.

We are shifting today to the “maximum flexibility in pension reform” formula. This means that the reform should be introduced as seamlessly as possible and, what matters most, through joint effort.

I am confident that the pension reform should have a mandatory component in our country, but we must find a path to the benefit of everyone, which could promote people’s participation in the process: “mandatory, but not forced.”

I hereby promise you to consistently implement the scheme which will be in line with the Constitutional Court’s decision and acceptable to different layers of society. Should there be some small groups opposing to the reform, I shall be twice as much consistent in explaining the benefits of the reform, though to do so, I myself need to make sure that we are following the right path.

Thus:

As a matter of fact, the new law suspends the mandatory component, pending the passage of the new legislative package. At the same time, I am confident that those organizations having assumed the burden of mandatory contributions by means of a rise in wages will continue to make payments on behalf of their employees. The money so paid out shall not be wasted, since it is the workers’ money. What I am asking now is just to wait a few months before the revision mechanisms are defined.

We are getting down to joint work tomorrow. Anyone reluctant to join us will hurt me in person, because I feel that it would be unfair not to give the newly appointed Prime Minister with only 10 days in office to get things right in a speedy manner.

In conclusion, I wish to say that I am against, too.

- I am against that anybody might circumvent the Constitution in a way or another.
- I am against the pension reform as it is.
- I am against that any issue might remain unclear or open to the citizens.
- I am against leaving any beneficiary group’s voice unheard regarding such a crucial program.

I am against.

But what matters most is that I am for the reform. I am supportive of any effective and mutually acceptable path leading to the pension reform. And, finally, I am the advocate of joint effort.

Thank you.