Monday, April 27, 2015

Pensions will not return – BBC

Return frozen pensions funded pension system is impossible, said Olga Golodets. Will not return 1 trillion rubles., Frozen in 2014-2015, but the money for the APF, held in accounts of the bank, will be handed over this year. On ordinary Russians refusal will not affect, say officials. However, according to experts, it would be better to give the Russians themselves to manage their pension savings.

Return frozen pensions funded pension system is impossible, said on Monday, Deputy Prime Minister for Social Affairs Olga Golodets. According to Deputy Prime Minister, conduct a reverse transfer is not possible, since they are already taken into account in the accounts of citizens in the insurance part of the pension.

«It can not be done, these funds accounted for in the accounts of citizens. It is economically impossible, it is not our view, “- said Golodets.

non-refundable only money, frozen in 2014-2015, and it is a little more than 1 trillion rubles. Money frozen for part of 2013 in the amount of 600 billion rubles., Which are now stored in the accounts of the bank, will be returned, said a source in the social unit.

The final decision on maintaining the funded part of the pension was made last week at a meeting of the government. On Thursday, Prime Minister Dmitry Medvedev said that the current pension system will continue to exist, and the freezing of pension savings for 2016 will not apply.

At the same time for a refund made by the Minister of Economic Development Alexei Ulyukayev. “This decision was not taken because the money was already taken into account within the framework of the PAYG pension system and as part of a transfer between the budget and the budget of the Pension Fund. This is a separate issue, which we will discuss further, “- said Ulyukayev.

However, to transfer back the frozen state pension savings are unlikely to be able to, since this government will have somewhere to find an additional 1 trillion rubles., And in the current economic realities is not possible, says a federal official.

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. Already in 2016 the Ministry of Finance for these purposes will be forced to spend more than 350 billion rubles.

In the non-payment of ordinary Russians funded part for 2014-2015, will have no effect, since their contributions have already been addressed in the pension system, says official sotsbloka. “The money received from freezing funded part of the pension system, have already been addressed in the social system and, accordingly, have been indexed in 2014 to 8.1% in 2015 – 11.4% – says the official. – In the future, these tools will also remain in the social part and will be indexed to inflation. ”

To provide the public an opportunity to choose whether to leave the money in the frozen part of the social or re-translate them into the collection, it would be the right decision, I am sure Deputy Director for Science, Institute of World Economy and International Relations Evgeny Gontmaher.

«While it turns out that the state retains storage component, but where is the guarantee that the issue of freezing will not be discussed again next year. From this perspective, the act of returning the money can be considered as the final closing question on this topic ».

Recall that future pension now Russian, born after 1967, is made up of three components: insurance ( accumulation by the time divided by 228 months – the expected period of “survival”), a fixed base (set by the government), and the cumulative (accumulated too divided to 228 months). Every year the government indexes on the value of last year’s inflation two of the three parts of pension – insurance and basic. The latter was introduced in 2002: citizens could send it to the state pension funds or the Criminal Code, or leave in the public pension scheme – under the control of Vnesheconombank.

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