ARAKS system for registration of pensioners, assignment and payment of pensions

The ARAKS system was developed with Armenia State Insurance Fund (SIF) commission and a TACIS project financing. Development of the system started in 1995 and was carried out in two phases:

• Development and implementation in 17 districts.
• In 1998 a subsystem for registration of employers and their social contributions was added to the system and it was installed in all 51 district offices, 10 marzes and SIF Headquarters.

At SIF Headquarters	Yerevan KENTRON pension insurance district center




Follow-up of the ARAKS system at YCRDI




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Hardware and software used in ARAKS system



• Management of database of the system – ACCESS.
• The application package is developed in ACCESS and MS VB 6.0 environment.
• The system is used in LAN environment with Pentium III computers.



Main functions of the system



1. Assignment of pensions, pension calculation and recalculation. This function makes data control and registration into the database.
2. Organizing payment of pensions and preparing financial requests. This function ensures preparing necessary payment lists for different agencies and data about paid pensions.
3. Preparing payment lists for deceased persons.
4. Assignment of child care benefits and their payment.
5. Registration of employers and their contributions to the Pension Fund.
6. Registration of quarterly and yearly reports of employers.
7. Control of monthly contributions by employers.
8. Evaluation of the effectiveness of SIF personnel based on 24 indicators.
9. Registration of law infringements by employers.
10. Registration of employers with court appeals.
11. Accounting and statistical reports.
12. Archiving procedures.

The ARAKS system has a central database and corresponding software which makes possible daily registration of transactions carried out in district offices and thus ensures general reports for all districts.

The system during several years of implementation in real time conditions proved very effective and user friendly. Possibility to follow social contributions by employers was especially important because of shadow economy and tendencies of diminishing social payments.




The ARAKS system structure