Putin Extended the Freeze of the Funded Pension until 2021
OREANDA-NEWS Russian President Vladimir Putin signed a decree to extend the freezing of the funded pension until 2021. The relevant document is published on the Internet portal of legal information.
In accordance with the current law, the funded part of the pension (6% of the salary of Russians) is not formed until the end of 2020. At the same time, all the funds that go to the Pension Fund of Russia (PFR) are directed to "financing the insurance part of the labor pension", that is, paid to current pensioners. This rule is valid until 2020. Now it will be valid until 2021 legal
"This Federal law comes into force on January 1, 2019," the text of the document says. At the same time, the bill applies only to those who were born after 1967 and voluntarily submitted an application to the FIU for the formation of a funded pension.
In addition, the decree of the President establishes the obligation of the FIU "to take into account contributions to compulsory pension insurance in 2021 based on the direction of the full amount of the individual part of the insurance premium rate to Finance the insurance pension".
The financial and economic justification of the bill states that the freezing of the funded pension will reduce the transfer from the budget to the Pension Fund by 609.1 billion rubles. before the freeze, the insurance contributions of employers for pension provision (at the rate of 22% of wages) were divided into two parts: 16% (for the formation of the insurance pension) and 6% (for the formation of pension savings, if the citizen did not choose only an insurance pension).
Since 2014, six percent of the salary of Russians, deducted in the funded part of the pension, go to pay those who are retired at the moment. Prior to that, these deductions could be managed independently, either by forming their own pension savings, or by transferring to the insurance part, thereby increasing the points for calculating their insurance pension. During the freezing of the funded part of the pension budget of Russia saved about two trillion rubles, said the Minister of labor and social protection Maxim Topilin.
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