The Russians were frightened of the new pension reform

As told by several managers of large funds, at the end of the year the influx of new customers has increased in one and a half to two times compared with the autumn months. By the end of 2016, the funds do not expect a smaller influx of customers than in 2015, when the number of citizens who wished to withdraw their money from the state or change Fund exceeded 7.6 million people. However, if last year the boom in the market of NPF was due to the haste of Russians in connection with the government’s decision not to renew the right to choose the pension, in this year relates to the debate around the new pension reform, which was proposed by the Finance Ministry and the Central Bank.

To involve not less

“Like last year, citizens actively engaged themselves in the last months of the year. In December we see the doubling of the applications for transfer of pension savings in our Fund”, — said the General Director of Fund “LUKOIL Garant” Denis Rudomanenko.

The growth in the number of applications noted in the NPF of the savings Bank, but according to the CEO of Sberbank NPF Galina Morozova, the activity of citizens has been observed since September: monthly the Fund take about 300-400 thousand applications for transfer of pension savings (how many of them approve of the RPF, will be known only next year). Interest in the NPF is not lower than last year, says Morozov. In General, the influx of new customers by the end of 2016, it estimates no less than last year. In 2015, the Fund has attracted 1.1 million new customers. The plans for this year in the NPF of the savings Bank do not open.

The NPF VTB for the year expect an influx of about 700 thousand new customers. This is 3.5 times more than in 2015. “Last year, our Fund did not conduct active sales, since it was unclear whether the funded pillar of the pension”, — explained the General Director of the Fund Larisa Gorchakovskaya.

However, not all active funds. A large number of players decides the organizational issues. “This year, we were engaged in the consolidation of pension assets, was placed on the exchange, so we didn’t have plans of active sales”, — says the Executive Director of NPF “Safmar” Evgeny Yakushev. The same situation is in the pension group of Gazfond (it includes the “KIT Finance” Promagrofond, “Heritage” and “Gazfond Pension savings”). “We are busy restructuring the business, so do not plan a large amount of attraction of new clients”, — says General Director of “KIT Finance Pension administrator” Anton Shpilev. According to him, the group’s funds are now more concerned about retention of the client base. “We expect a slight increase in assets in the 5-10%”, — said Shpilev.

Pension risks

Active citizens in 2016 are pushing conversations about the next pension reform. At the end of September the Deputy head of the Ministry of Finance Alexei Moiseev in Moscow financial forum presented a detailed version of the reform of the Russian pension market, developed by the Ministry of Finance and the Central Bank. It assumes that citizens will begin to save for retirement on their own, paying a portion of their salary to an individual pension capital. Be considered retirement savings will not be at FIU, and as suggested in the government, in specially created pension administrator. In return, the government promises to future retirees tax benefits and the right to dispose of pension accumulation in case of emergency.

“Citizens consciously take the money from the state, we see that the interest to transition to the NPF after the next hype around pension reform has increased dramatically,” — says Denis Rudomanenko. “There are risks that a system of individual pension capital and a single administrator in the process of changing the NPF for citizens will become more complex, so in 2016-2017, it is actually the last chance for NPF to expand its client base. Funds in a hurry: there are fears that in 2018, if you earn a complicated procedure of transfer of customers, attracting new customers drops to zero”, — says CEO of consulting company “Pension partner” Sergey Kolesnov.

The representative of the NPF Safmar forecasts for the year as a whole for all NPF 7-8 million applications from citizens. According to estimates Morozova, at the end of 2016 NPF can conclude about 8 million of contracts with customers. In her words, a significant portion of customers can upgrade from other funds. “In 2013-2015, the citizens have made their choice and are now beginning to actively manage their retirement savings,” she says.

How much to spend FIU

Expectations of participants of the pension market is close to expectations of the FIU. In the budget of the Pension Fund for 2017 provide for the transfer of pension savings in the Fund in the amount of 364 billion rubles According to the calculations of the Association of private pension funds, for the year to withdraw their money from the State management company — VEB, about 5.5 million Russians. In total, the experts of the Association, to change the insurer can be about 9.8 million. In 2015, the PFR transferred funds 259 billion rubles. thus withdrew their money from the government more than 4 million Russians.

By the end of 2016, according to market participants, the expenses of the FIU and may be less than the amount envisaged, if the part of the citizens ‘ applications will be rejected. In 2015 the Pension Fund of Russia has approved only 56.5% of the filed applications for transfer of pensions to private funds to move their money managed 7.6 million citizens. 5.8 million citizens were refused mainly because he wrote a few statements on the transfer of funds (FIU only accepts recent date), or written statement about the transfer of funds to the Fund which has not entered into the guarantee system of pension savings.

According to the FIU, on 1 November, the citizens have already submitted 5.7 million statements about transfer of pension savings (in 2015 over the same period, 3.7 million), while more than half of future pensioners (3.2 million people, or 56%) took the money to VEB, wishing to pass them on to the NPF.

From Fund to Fund

According to some members of the NPF, clients, private foundations does not stop, and possible loss of investment income in case of premature withdrawal. According to which entered into force on 1 January 2015 changes to pension legislation, the savings can be transferred from the Fund to the Fund no sooner than every five years if the citizen wants to preserve the accumulated investment income. The Fund could change more often, but in this case, investment income is retained by the previous Fund and the new will be transferred the value of savings.

According to Gorchakovskii, future retirees focus on the brand, thus attempting to choose a reliable Trustee to manage your savings. “We tell them about possible loss of investment income, but many are willing to sacrifice some money to be quiet for safety of the principal amount”, she said.

In 2015, of the approved Pension Fund of Russia of statements of citizens about transfer of pension in non-state funds (7.6 million) of 4.09 million people transferred their pension savings from the PFR to non-state funds (54%), and 3.14 million people — from one private Foundation to another (41%).

Denis Rudomanenko believes that a rule that in case of early transfer of pension savings, the client cancelled the investment income is not working. “People continue to lose money simply because ill-informed. You need to enter the rate at which the application of transfer of savings of the citizen must be submitted to the previous insurer, which is interested in the fact that the client was he able to explain all the consequences,” he said. Otherwise, the fear of the financier, the situation could be repeated in 2015, when the funds received over a thousand complaints from customers, unhappy that the results of the transfer of savings to the equity in their accounts has decreased. By the end of 2015, as reported by the FIU, and about a million of Russians, who wrote the application for early transfer of funds in the NPF, lost investment income. Their total losses are estimated at RUB 4 billion, of which RUR 2 billion remained in the Pension Fund.

According to estimates NPF of Sberbank, the share of crossings of citizens from the Fund to the Fund at this time will be about 25-30% of the new borrowings, lower than at the end of 2015. A similar calculation leads and the head of another NPF, which says that the reduction in the number of transitions between funds may be associated with the arrangements of some of the major players of the pension market. In 2015, several NPF agreed among themselves that will contribute to the reduction of transitions of customers from the Fund to the Fund, refusing to aggressively attract customers from each other. Evgeny Yakushev another explanation: “the Proportion of transitions from the funds in the Fund decreases, the NPF now become more careful to control the quality of customers because of complaints and adverse judicial decisions create risks revocation of the license”. According to his estimates, in 2016, 70% of the transitions from the transition from PFR in NPF. Denis Rudomanenko more pessimistic regarding the number of transitions from Fund to Fund. “We expect that this year approximately 5 million people decide to change pension Fund. It will be about 15% of all clients of NPF, or 50% of new borrowings”, — he said.