Media: the Ministry of Finance proposes to introduce a mandatory private pension provision

MOSCOW, 1 March. The Russian Finance Ministry is preparing a draft law on the introduction from 1 January 2019 new mechanism of pension contributions – mandatory non-state pension provision (ONPA). About this newspaper “Izvestia” with reference to the project of the Ministry.

According to the newspaper, the initiative of the Ministry of Finance assumes that the contributions will be formed by the mandatory contributions of the employee “beyond distributive and accumulative systems”, and their sum will be installed in accordance “with the objective of providing wage replacement rate for corporate pensions in the amount of, for example, 10%”.

Mandatory deductions are required not only for employees but also for employers, which will co-Finance the pensions of their employees. Responsible for monthly transfer all funds to the account of NPF proposed to be carried on the employer, and the employee will automatically accede to the Treaty of ONPO when you receive the staff of the organization, the newspaper notes.

According to “Izvestia”, the contribution rate is proposed to increase gradually from 1 January 2019 the employer and employee will pay 1% from 2022 2%, and in 2025 – 3%. The Finance Ministry believes that fee of 1% of salary in 2019 (excluding funds of organizations or individual entrepreneurs) and full inclusion of all employees in the system ONPO, the amount of pension funds may amount to 156 billion rubles.

The Finance Ministry also offers another option – a gradual introduction of ONPO depending on the number of employees in organizations: from 2019 – for companies ranging in size from 1 thousand persons, 2021 – 500 people 2023 – 100. Thus, by 2024, the program should include all individual entrepreneurs.

On the proposal of the Ministry of Finance, requirement for receiving a pension is the attainment of statutory retirement age and periods of contribution, but payments may be scheduled ahead of time, the report says. To do this, employers will need to send in non-state pension funds contributions of at least 2% or 4% of the wage Fund (PAYROLL) for employees working in areas with harmful and dangerous working conditions. There is a probability that the improving economic situation and to achieve fiscal stability, the government will pay for the function.

Wednesday, February 29, the Governor of the Bank of Russia Elvira Nabiullina said that under the proposals for reform of the pension system, which is working on the controller, discussed the option to automatically “subscribe” citizens in the accumulative pension system.