Pensions leave accumulation – BBC

funded pension agreed to keep. This was officially announced Prime Minister Dmitry Medvedev. This will support the financial markets, but will not solve any of the problems of the pension system, and force the government to further reduce budget expenditures.

«storage element remain – said Prime Minister Dmitry Medvedev at a government meeting on Thursday . – We must develop a predictable pension system. ” He instructed First Deputy Prime Minister Igor Shuvalov control, and the Ministry of Finance and Economic Development to tell you how to balance the budget in view of the decision.

Formally, the Prime Minister put an end to the dispute about the fate of the storage element.

During the final abolition of the funded part of the pension is a social unit of the government. His arguments: on the one hand, it does not benefit the citizens, because the investments are generally very low yield; on the other – does not benefit the economy because virtually embedded in the real sector.

For the preservation acts as a financial unit of the Government and the Bank of Russia, explains that the pension savings at the moment are virtually the only source of long-term funds for the economy.

Medvedev argument for the preservation of the funded part of Thursday called citizens’ opinions. And thus, took the side of the financial unit.

Let us recall that the pension Russian, born after 1967, is made up of three components: the base (set by the government as a fixed amount is indexed annually), insurance (depends on the contributions paid to the Pension Fund of the Russian Federation, all accumulated by the time divided by 228 months or 19 years – the expected period of “survival”) and funded. The latter was introduced in 2002 – citizens can send it to the state pension funds or the Criminal Code, or leave in the public pension scheme – under the control of Vnesheconombank.

In the autumn of 2013 it was decided to reformat the system of pension funds and because the money was owed to them given to the management of VEB, which has until the end of May this year to return them to the order of 600 billion rubles. for 2013.

In 2014 and 2015 storage component has been frozen and the Pension Fund of Russia expended all incoming contributions on pensions for current retirees.

Now in the collection system more than 3 trillion rubles., including non-state pension funds (NPF) – 1, 2 trillion rubles. As a result of “withdrawal” of pension savings for the years 2014-2015 (ie premiums 22 million customers NPF) pension funds will not receive more than 1 trillion rubles.

Representatives of the NPF are pleased that funded part of pension decided to keep. “How long will the funds allocated to the pension system, when they run out – Today the question no one answered. That is why the mandatory funded pension need to save, “- said General Director of NPF” Education “Alexei Filippov. “Moral hazard and the more confidence crisis that arose after the decision to freeze, were very important,” – says CEO NPF “sun. Life. Pension “Sergei Dubinin.

Director of the Institute for Social Analysis and Forecasting RANHiGS Tatiana Malev also believes that, in any case, the question should have been solved long ago. “The biggest misconception would again postpone the decision to extend the freeze or funded pension. I am convinced that it would be a mistake. Delaying the decision brings the double evil – and the system does not work, and confidence in the system falls. ”

However, the decision to keep the storage component does not remove any of the problems in the budget and pension systems.

«The decision to freeze in 2014 -2015′s funded component was made including on grounds of budget savings “- recalls a government official. The federal budget as a result save hundreds of billions of rubles for transfers to the FIU.

Return accumulation means to financial market participants will lead to an increase in budget expenditure, because the government will have to increase the size of the transfer to the Pension Fund.

The Ministry of Finance will have to budget for 2016 and subsequent years to cut other expenses, to avoid increasing the budget deficit.

In This year it will be 2.7 trillion rubles. In the first quarter of the federal budget missed 813.4 billion rubles.

Lack of funds the government plans to cover the expense of the Reserve Fund, which on April 1 this year was 4.426 trillion rubles.

According to the director of the Center for Macroeconomic Research Sberbank Yulia Tseplyaeva, unfavorable situation on the Reserve Fund may be almost exhausted this year.

The second problem – this is an increase of the budget deficit of the Pension Fund of Russia (PFR). This happens due to reducing the number of able-bodied citizens who pay premiums to the pension system. And also due to the fact that the steadily declining number of those employees who do not have the storage component (born before 1967), ie the premiums which de facto entirely go on pensions for current retirees.

Do not solved the problem of return on pension savings.

At the end of 2014, only one SPC was able to show profitability above inflation. VEB, which controls the accumulation of “silent types”, ie those who have not transferred the money in the pension funds and the Criminal Code, rate of return of 2.68% for pension savings expanded portfolio, the portfolio of government securities – negative. But the 4.9% and 2.68% at times less than the level of inflation, which last year amounted to 11.4%.

In addition, to work out more and mechanisms for translating pension money in the real sector.

Dmitry Medvedev instructed to prepare proposals for the efficient use of resources funded part. “I mean their use is not only and not so much for the repayment of the budget deficit, but also to support investments in the development of the economy, especially in markets closed to us foreign financial liquidity,” – said Medvedev.

While the pension money goes into government securities and deposits, even the stock market are almost not receive. According to the analyst Sberbank CIB Andrey Kuznetsov, if mandatory retirement savings will indeed be defrosted, it will be obvious positive development for the capital markets, but the stock market will get only a fraction of the expected inflow of funds. “According to our calculations, the shares invested in only 4% of” pension “means. Revenues in the compulsory pension savings is estimated at 350 billion rubles. ($ 6.6 billion) per year, that is, the stock market will receive about $ 250 million a year, or 0.2% of the free float “- he said.

The mechanism of pension savings to finance projects of the real sector is very concerned about market participants.

«Now that the principal decision to maintain the funded pensions, more important theme will be the development of a program funded system and details of its implementation, so it is very important to be April 25, when the president will present a program use of SPC to finance infrastructure projects, “- said Sergei Dubinin.

Another fundamental issue that the government only has to decide – what to do with the storage component after 2016. “We must also retain the right of citizens to choose a funded system after 2016, setting a default contribution rate of 6%, and only wishing to form a pension insurance – to write an application to the Pension Fund,” – says Evgeny Yakushev chairman of the European pension fund.

In general, the most important decisions to be taken a lot more, and the pension system will be a headache for the government at least until the end of the year.