Question 104. Who is the Register of participants?

The Register of participants of the funded component is an organization that operates based on a contract concluded with the Government of the Republic of Armenia. The register of participants is maintained by the Central Depository of Armenia which performs the following functions: 

• Opening and maintenance of the participants' pension accounts;
• Organizing the issuance and redemption of mandatory pension fund shares;
• Transferring the participants’ funded assets to the pension fund manager without disclosing the participants who have made their selection of pension fund managers;
• Transferring pension assets from one pension fund manager to another one at the participant’s discretion (based on an application);
• Providing the participants with information on their pension accounts;
• Making lump-sum and scheduled payments jointly with the Custodian;
• Transferring pension assets to the insurance company;
• Transferring a deceased participant’s shares to his heirs. 

Question 105. How will communication between the participants and the Register of participants be ensured?

The register of participants (Central Depository of Armenia) has no regional units (offices) and does not provide services directly to the participants. 
Communication between Central Depository and the participants of the funded component is ensured through the website of the Register of participants or through the account operators. 

Actually, the account operator intermediates between the Register of participants and the participants of the funded component in providing services.
See question 55 about organizations functioning as the account operator. 

Question 106. What is an individual pension account and how is it opened?

An individual pension account is opened for each participant of the funded component at the Register of participants. The account contains information on the participant's mandatory pension fund shares, their estimated value, targeted social contributions made in the favor of the participant. 

An individual pension account is opened on the basis of: 
1) the information on a person’s targeted social contributions which is submitted by the tax authority to the Register of participant;
  
2) the application for selection of mandatory pension fund submitted to the Register of participant. 

Question 107. How can a participant obtain information on his accumulated pension funds?

A participant can obtain information on his accumulated pension funds with the help of the following reports:
  
1. Pension account statement; 
2. Reference on transactions made through the pension account; 
3. Previous year's annual report on the pension account 
4. Report on the latest 10 transactions made through the account via ATM. 

A participant may receive a statement and a reference visiting the account operator or accessing "My Account" system at www.epension.am website.

A participant may receive an electronic or a hard copy of the annual report at his discretion. 

Question 108. May a person obtain information on the income tax and the targeted social contributions he paid?

Yes: RA State Revenue Committee by the Government (the tax authority) will conduct personified records of the targeted social contributions and income tax paid for the employees and their employers as well as self-employed, private entrepreneurs and notaries who are registered according to the procedure determined by the Labor Code of RA. An individual account based on a person’s public service number is opened for each employee, self-employed, private entrepreneur and notary in RA State Revenue Committee by the Government. Information on a person’s basic income (wages and other income received from civil contracts) in the reporting period (every month for a hired employee and every year for self-employed, private entrepreneurs and notaries), information on the income tax payments and the targeted social contributions are recorded in the participant’s individual account. Summarized data in the personified registration system are available to the owner of the individual account. He can get acquainted with the information via Internet, accessing his web page of the personified registration system with his identification card and a card reader; or he can require written statement of his account from the local department of RA State Revenue Committee by the Government. Once a year the statement will be provided to the participant free of charge, the next times provision of written statements will be for charge. 

In case of a participant’s transfer to other employer (change of employer), duties for payment of employee's income taxes and targeted social contributions (tax agent) will be performed by the new employer. A new individual account will not be opened for the employee, however the information is entered to the employee’s already opened account. 

A participant may obtain information on the targeted social payments from the last pension year's annual report and from the reference on the operations made through his pension account. With the help of these reports a participant can see information on the targeted social payments made by him and by the Government for any time period. 

Question 109. Can the information on a person's individual pension account be accessible to third parties?

Information on a person’s individual pension account is confidential and is not accessible to third parties, including members of his family. 

Neither employers nor the pension fund manager can have access to a participant's individual pension account data about the fund selected by the participant, the quantity and the value of the pension fund shares held by the participant. 

The register of participants, the account operator and the tax authority, which have access to the information on a participants' individual pension accounts are obligated to keep pension secret and do not disclose or make it known to any third party. 

In the presence of certain grounds exceptions may be applied to the above principle of non-disclosure. In particular, based on a decision of the prosecution body or the court, the employer, government agencies and other entities are required to provide information on a person’s individual pension account. 

In addition, according to another exception, information on a person’s individual pension account can be provided to the heirs in case of submission of documents confirming the right of inheritance. 

Question 110. Where to apply in case a participant has a complaint or an inquiry concerning mandatory funded contributions, individual account, as well as pension account and their annuity?

In case a participant has any complaint or inquiry concerning mandatory funded contributions and individual account, he may apply to RA State Revenue Committee by the Government (the tax authority), which will review the complaint or the inquiry within 30 days and notify the applicant in writing about its decision along with detailing the reasons and legal bases for taking such a decision. If the inquiry or the complaint is beyond the competence of the tax authority, then the tax authority will forward them to the the competent body within 3 days. 

In case a person has any complaint or inquiry concerning individual pension account, he may apply to the tax authority or the Register of participants. 

Question 111. Can a participant see how his pension fund assets are distributed and where they are invested?

According to the Legislation of RA the pension fund manager is obliged to publish all of his stock portfolio structure with the geographical and sectoral distribution of the fund's investments.
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