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Pension reforms in Armenia
The current pension system of the Republic of Armenia incorporates the following components: Pillar 0 or Social pension (benefit), Pillar 1 or Employment pension, Pillar 2 or Funded pension, Pillar 3 or Voluntary pension.
== Introduction ==
Before the implementation of the Pension Reforms, the Pension security system of the Republic of Armenia was characterized as a PAYE (pay-as-you-earn) pension system financed on the principle of the solidarity of generations. The system actually performed a distributive function; the payments were made by employees, employers and individual entrepreneurs to the State budget, of which the pensions payments were provided by the order defined by Law.
The pension amount in the PAYE system is calculated based on the basic pension amount, the number of years in service and the compensation amount for each ensured service year, as well as pensioner’s personal coefficient (the latter is also calculated based on the number of eligible years of service).
Over time, however, due to a number of factors (they will be discussed below) the pension system based on the principle of the solidarity of generations failed to meet the expectations of its beneficiaries. Evidently, the pension system of any country has to solve one problem: to ensure adequate living standards by guaranteeing their pensioners a dependable pension provision. That’s why many countries of the world, including the Republic of Armenia, started looking for other ways to solve the problem, mainly putting forward the idea of developing the self-financing pension systems.
抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』
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