The Ministry of Finance announced the transfer of the cumulative part of pension in the PKI system

The Ministry of Finance announced the transfer of the cumulative part of pension in the PKI system

Moscow. March 16. Funded part within the framework of the mandatory pension system (OPS) should go under the “umbrella” of a new system of individual pension capital (IPK), said Deputy Finance Minister Alexei Moiseev on Russian pension Congress. The concept of the new pension system, the IPC has developed the Ministry of Finance and the Central Bank, and now they are preparing a bill.

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“We are publicly discussing the concept, which was called IPK. We when it was conceived, perceived as the modernization of the OPS. The ultimate challenge is the modernization of the OPS and the application to the new budget conditions (. . .) You know that budget constraints so happened that the budget does not allow to 2019, I think that in the future, to invest which was going to go to OPS, private pension funds, so the OPS system requires modernization,” – said Moses.

“In the end, the goal should be (what) OPS fully comes under the umbrella of the PKI”, – said the Deputy head of the Ministry of Finance. Moses said that the accumulation of “undecideds” must be transferred to the pension Fund, or converted into pension points, that is, the FIU will no longer be the insurer under funded pension. Agree with him and the first Deputy Chairman of the Central Bank Sergey Shvetsov.

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“We may remember the wonderful system that was. Today, there are no transfers from the budget to the accounts of citizens. The system for three years under the freeze, decided on a three-year forward freezing. We can discuss what is bad about it, but it does not exist. We can not save for the reasons which Alexey Vladimirovich has called. It will be dismantled because the costs of administration and maintenance of the two systems are too large, and we can’t afford them,” – said Shvetsov.

Moses recalled that the new pension system will be based on the voluntary contributions of citizens, they will make the default, that is, the citizen, did not Express any desire to be included in the system, and has declared that does not want to participate will be excluded from the system. The developers of the concept of adjusted incentives required to encourage citizens to form pension funds. Initially it was proposed to introduce exemption on personal income tax and give concessions to employers on contributions to non-budgetary funds.

Against the last concessions were made by the social block of the government, the Pension Fund of Russia. The Ministry of Finance and the Central Bank took into account these objections. It is now proposed to give a deduction for personal income tax for citizens in the amount of contributions to the Institute, but within 6% of salary. “Another benefit is the allocation of the 6% that the citizen pays to the Institute, the cost increase factor. Something like this is now implemented and the cost of IT. The same thing we offer here, while the proposed ratio of 1.06, have a point of view that is not enough, but we’ll see,” said Moses.

He also noted that the implementation of automatic subscription of citizens to participate in the new system, the establishment of a Central administrator who will administer the assessments, maintain the database, to inform citizens, to monitor the receipt of contributions, and transitions to Npfy.