Ministry of economic development has offered to unfreeze retirement savings – RBC

a Pensioner in one of the offices of the Pension Fund of Russia

Photo: TASS/Alexander Ryumin

Ministry of economic development proposes to unfreeze the funded part of pensions next year with a reduced rate of 1%. The budget may lose 65 billion rubles, but it will be a “positive signal” for citizens and investors

the Ministry of economic development intends to offer to partially thaw the funded component of pensions from next year and to list in 2017 in the funded part of the 1% rate (instead of by law 6%). About it told RBC a source in the Ministry confirmed the Deputy Minister Oleg Fomichev. According to him, royalties of 6% rate can be recovered in 2018 or 2019. Officially these proposals the Ministry of economic development had not yet come.

the Ministry of Finance on Thursday night did not respond to a request RBC. The representative of the Pension Fund would not comment on the initiative.

Cumulative part of the pension was frozen for the first time in 2014, which helped to keep money in the Federal budget due to savings on the transfer to the Pension Fund. To freeze the premiums of employers in pension provision (at the rate of 22% of salaries) was divided into two parts — the 16% on the formation of pension insurance and 6% for the formation of pension savings, if the citizen does not choose a pension insurance.

Then freeze the funded part of pension was extended for 2015 and 2016. In 2016, the Federal budget savings from the moratorium amounted to 342 billion roubles, of them were formed “anti-crisis” presidential reserve.

Extend freezing of pension savings for the next three years proposed by the Ministry of labour. In July, the Deputy head of Department Andrey Pudov said that the Ministry proposes to extend the freeze of pension savings in the years 2017-2019. The FIU budget projections for those years assume that the entire amount of insurance contributions (22%) will be allocated to insurance part of pensions, i.e. to the payment of current pensions to pensioners. The formation of pension savings in years 2017-2019 is not provided, said in late August, Deputy Prime Minister Olga Golodets. “Already the ultimate limits brought, no transfer to the Pension Fund,” she told journalists (quoted by “Interfax”).

labor Minister Maxim Topilin said that the freeze will save next year to 390 billion rubles of budget funds. According to the Central Bank for the first half of 2016, in the system of private pension insurance was 29,93 million people.

Positive signal

Now the economic development Ministry believes it is possible to unfreeze the listing and start with a reduced rate of 1% in 2017, with a gradual recovery rate with 2018, said a source in the Ministry. Oleg Fomichev said that in 2018 possible from the transition to a tariff of 6%, “if the economic situation is favorable,” or a return to the rate of 6% will be extended for three years. In case of approval of this proposal at the rate of 1% of the budget may need about 65 billion rubles, said a source in the Ministry of economic development, but a partial thaw, according to him, would be a positive signal to citizens and investors.

the Head of the Central Bank Elvira Nabiullina said in early September that next year is unlikely to be a direct effect of freezing the cumulative part on the Russian economy, but this decision will have a lasting effect. “The cumulative part is, of course, an important resource, on the one hand, ensure a decent pension for pensioners, who can accumulate during his working life, but also a source of long-term funds, source of investment growth in the economy,” she said (quoted by “Interfax”).

Earlier, for the abolition of the moratorium on formation of pension savings and temporary reduction of tariff rates of insurance contributions were made by the Association of private pension funds, reported “Vedomosti”. But against the defrost has traditionally been the social block of the government. Olga Golodets has repeatedly stated about the necessity of the abolition of the mandatory funded part of pensions and the necessity of the translation on a voluntary basis.

currently, the Ministry of Finance and the Central Bank develop a new concept of the pension system. It will be similar to the one that exists in Australia and New Zealand: citizens with higher wages will have to think about retiring themselves, said may 18, Deputy Finance Minister Alexei Moiseev.

the Bank of Russia supports the conservation of the accumulative pension system, but with modifications stated in the beginning of September the head of the Central Bank Elvira Nabiullina.