Future retirees will propose to divide pension assets and accumulation

The Ministry of Finance and the Central Bank are trying to reduce the uncertainty for future retirees in the transition from accumulative pension system into a system of individual pension capital (PKI). The problem is that the concept of IPK is still not spelled out the rights of citizens wishing after the introduction of the IPK to change the Manager of their pensions. Because of this it may be a situation when non-government pension funds, after the relevant amendments are adopted, will not be able to translate savings of citizens on their previously submitted applications. And this is, in fact, violate the rights of insured persons to choose the insurer to manage their pension capital.

“If the PKI system will work on 1 January 2018, it is unclear how the statements of citizens about transfer of pension savings, which they filed this year”, — says CEO company “Pension partner” Sergey Kolesnov. He recalls that the Pension Fund considers applications from citizens in January—February and until March 31, puts savings in the funds. “I’m not clear how technically to do it, if by January 1 will enter into force the law on IPK. Citizens wrote applications for the transfer of savings, but the ones from January have already changed your status on capital, it may be cause for refusal,” he said.

The lawyer of the Moscow bar “KLISHIN and partners” Andrey Shugaev has not excluded occurrence of the legal conflict, and can result in mass appeals of citizens to the courts. “It may be a situation when due to the transition to the new pension model, citizens could not exercise their right to manage pension savings”, — he said. In this case, according to Shugaev, the courts can take the side of future retirees.

The representative of the FIU Marita Nagoga said that no changes in the current transfer campaign, savings in 2016 are planned.

The Central Bank and the Finance Ministry at the end of September 2016 submitted proposals for the modernization of the system of pension savings — the concept of individual pension capital, emerging in the Fund through voluntary contributions of citizens. It is planned that paid by the employee contributions will be supplemented by government through tax deductions in the amount of voluntary contributions for future retiree and his employer.The state can provide citizens with a right to withdraw retirement funds in emergency situations.

Possible solutions

One of the possible solutions to the problem said a source close to Central Bank and official financial-economic bloc of the government. According to them, is expected to be installed in the following order. To transfer other control can be only the employee contributions received for the account of IPK. Funds collected under the existing system of pension savings deductions, it is proposed to leave in the previously selected Fund or the Bank. Transfer them to the new Fund will be possible after the five-year period from the date of their placement from the previous insurer. “This is done to ensure that citizens in the transfer of funds did not lose the received investment income,” said a source close to the Ministry of Finance. Thus, citizens in this part of pension funds the right choice temporarily for the transition from savings to a of IPC is lost in principle.

Top Manager of a large NPF says that he heard about such proposals with representatives of the Ministry of Finance and the Central Bank at the end of 2016. “But it is unclear whether they will be included in the final bill on the reform of the pension market. Time is running short. Earlier, representatives of the Ministry of Finance do not exclude that the law can earn in 2019.

However, this is only one of the ideas that are in the initial stage of discussion, the situation may change, say sources . Various options are being discussed: the creation of a special state pension Fund to the system of random allocation of the contributions of FDI funds, according to their market share, said several representatives of the NPF who know about this from the participants. Given that the issue not solved, the Central Bank in its official comments have refrained from discussion of this idea, saying that the issue of transfer of savings from the Fund to the Fund will be regulated in the transitional provisions of IPK. The Finance Ministry pointed out that “the new restrictions to enter is not”.

Meanwhile, earlier the Ministry of Finance has proposed to tighten the procedure of transfer of pension savings to prepare amendments to the pension law providing that people who want to transfer a pension, will have to double to apply to the Fund, where they accumulate. Will first go over the translation, in response to which NPF is obliged to inform the citizen about possible losses. After that will go directly to the application of transfer of savings, which the NPF must transmit to the FIU. However, these amendments did not address the subject of pension capital.

The pros and cons

A key disadvantage of the proposed ideas — a partial restriction of the rights of future pensioners, say the participants of the pension market. Adopted in 2013 law retirement 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. But now the Fund can be changed and often, leaving the investment income from the previous Fund and transferring the new Fund, the value of savings.

According to estimates of the FIU in 2015, about a million citizens who replaced the NPF, suffered losses due to foregone investment income. Their total losses, according to the Pension Fund amounted to RUB 4 billion.

However, proposed by the Ministry of Finance and the Bank of ideas has more obvious advantages. “In fact, the citizen will be able to shape your future pension in two different funds,” — said General Director of NPF Sberbank Galina Morozova. According to her, this idea clearly better than existing practice when the person to change the Fund and not to lose investment income, you need to decide in advance what the NPF it will be to transfer funds. “In five years, you will forget who and what you wanted to translate. Besides, the situation may change: for example, Fund someone will buy it,” she says.

Morozov points to yet another problem: in the proposal says nothing about changing the future by choice managing pension savings in the period until they are frozen. “If the law will be implemented such a scheme, it is necessary to provide a mechanism to review previously submitted applications,” says she.