During today’s meeting, the Federation Council approved a bill to extend the freezing of the funded part of the pension until the end of 2024. The meeting was broadcast on the website of the upper house of parliament.
According to the document, insurance premiums will continue to be used in full to finance insurance pensions. The explanatory note to the bill says that the decision “significantly reduces the amount of the transfer for compulsory pension insurance transferred from the federal budget to the budget of the Pension Fund of the Russian Federation” (PFR).
This measure was first implemented in Russia in 2014, after which it was prolonged several times. Thus, the country’s employers send insurance premiums to the FIU in the amount of 22% of employees’ salaries. 16% of this amount previously went to an insurance pension, the remaining 6% – to a funded pension. However, since 2014, the formation of the funded part of the pension has been frozen and the entire amount goes to the employee’s insurance pension.
At the same time, the accumulations that formed before 2014 remain. Citizens will be able to receive payments from them after retirement. It follows from the bill that the adoption of the document will not lead to a decrease in the volume of pension rights of citizens.
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