Many people these days are anxiously writing or asking why the share price of pension funds has fallen, is that an acceptable picture? Lawyer Varuzhan Avetikyan writes about this and clarifies:

“I must say that there is no need to get upset, because.

1) Securities prices have fallen due to various economic, health and behavioral reasons. This, of course, has had a negative effect on our pension stocks.

2) Bankruptcy has a temporary nature and as soon as we return to the “new natural”, the value of the shares will increase. We saw such a deflation in 2014, after which the shares were revalued.

3) The financial history of the world shows that the trend of pension values ​​is usually increasing. Look at the charts in your stock.

4) We will have the first pensioner under the accumulative component in 2029, and before that in Armenia no one of “accumulative” age will retire as a beneficiary of mandatory pension, that is, the share with cheap values ​​will not turn into money.

5) The legislature has adopted the Law on Additional Rights and Legal Guarantees for the Protection of Participants in the Accumulative Component of the Pension System, Part 2 of Article 2 of which states that “the Republic of Armenia undertakes obligation to ensure the legitimate interests of participants. It also guarantees the continuity of the defense in case of accidents caused by insurmountable force (force majeure), emergency situations and other conditions of the state of emergency.” This means that if today we had pensioners receiving money from the system, the state would have to compensate the income losses of the participants due to the epidemic.”