The state Duma has frozen pension in 2016

The state Duma has frozen pension in 2016

MOSCOW, December 4. The state Duma adopted a law on freezing the funded part of pensions in 2016.

The initiative was introduced by the government.

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© ITAR-TASS/Alexander Ryumin

Pension reform in the Russian Federation. Background

The law extends to 2016 the moratorium on formation of accumulative pensions of workers born in 1967 and younger. Thus, in 2016, as well as in 2015 and 2014, premiums in full will go to the Pension Fund on the formation of a pension insurance.

As said earlier the Chairman of state Duma Committee on labor, social policy and veterans ‘ Affairs Irina Sokolova, this measure will increase the revenues of the budget of the pension Fund on 342,2 billion, and to allocate these funds for current payments of pensions and insurance will reduce to the required amount transfers from the Federal budget for compulsory pension insurance.

“On the other hand, the volume of pension rights of insured persons decreases, as the amount of insurance contributions in full will be reflected on the individual insurance account of the insured person and taken into account when determining its individual rate in 2016,” explained Sokolov.

The government has already imposed a moratorium on formation of accumulative part of pensions in 2014 and 2015.

Work on cumulative pensions will not be terminated

As highlighted earlier, Prime Minister Dmitry Medvedev, freezing of pension savings in 2016 does not reduce the amount of the pension rights and does not mean that the government stops work on accumulative pensions.

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The state Duma Committee recommended the adoption of the bill on the indexation of pensions in 2016

He noted, “the current situation dictates a certain set of decisions.”

According to estimates of the Ministry of Finance of the Russian Federation, freezing pension savings will give the budget an additional 342,2 billion. Due to the freeze of pension savings will be formed a second Fund to support sectors of the Russian economy, said the head of the Ministry of Finance of the Russian Federation Anton Siluanov.

“We hope that this resource will be saved, and when the results of execution of the budget next year will be able to make a decision about how to dispose of them properly in different ways,” said the Finance Minister.

The Minister also hoped that the extension of the moratorium on transfer of pension savings by 2016 will be the last.

See also

© Alexander Ryumin/TASS

“Ministry of pensions”: reform in the eyes of officials