MOSCOW, July 28. /TASS/. The Finance Ministry proposes to gradually introduce in Russia a system of individual pension capital (PKI): in the first year of launch, to pay a portion of salaries to the funded pension will begin workers of large companies will give them six months to decide whether to start to deduct contributions, and the silence will be considered consent. Such suggestions are contained in the modified concept of IPK made by the Ministry of Finance to the government on 24 July (a copy is at the disposal of TASS). The document provides three mechanisms for inclusion in the employee’s system of the IPK “default”.
The previous variant of the concept was returned for revision, and the main discussion had been the question of the automatic subscription of citizens to pension accumulation.
A modified concept assumes that when applying for a working citizen to send proposals with the conditions of entry into the PKI system. The employee may accept the offer or refuse it, submitting an application. If he has not taken a decision within six months, it shall be considered that he joined the system (“acceptance by silence”).
Similar rules will apply for those who are already working under an employment contract at the time of the introduction of ITQs. This order is considered simplistic and to be applied to certain categories of employees (in concept they are not specified).
“In the first year of system startup IPK this will apply to large enterprises”, – is spoken in the concept.
Under the simplified procedure will covers all citizens who already have or for the first time since the launch of the system entering into an employment contract with such an enterprise. These categories of workers will get a number of additional rights: the employers will pay contributions to the Institute free of charge, and a tax credit, which will be provided to the participants in the IPK, the employee will receive automatically with salary without waiting for the end of the tax year and filling in a tax return.
The Finance Ministry proposes alternative ways of inclusion of citizens in the PKI system default: indication of the Labour code, the participation and payment of contributions is an obligatory condition of the employment contract or a direct indication of the law follows from the concept.
A compromise solution
Criteria for major companies, through which will begin the introduction of ITQs, the concept is not specified. Step-by-step reforms with British counterpart IPK – NEST, which proved to be successful, the President of the Association of pension funds (ANPF) Sergey Belyakov. “From October 2012 to February 2014, the mandatory inclusion in the program of the workers was for employers with a staff of 250 employees. Then the limit was reduced to 50, then to 30. In January 2016, there was a complete coverage of employers,” – said Belyakov TASS. Perhaps these indicators will form the basis of the PKI system, but these details will be developed in preparation of the bill, if the government approves the concept, he said.
According to him, the acceptance of the offer instead of autopages and the gradual implementation will reduce the number of participants in PKI. However, this compromise solutions that increase the adoption rate of PKI, he said. The Finance Ministry previously reported that the finalized concept agreed with the Ministry of economic development and the Central Bank of the Russian Federation. It was also known that the concept criticized the Ministry of labor, on removing differences with him were not reported.
The basic contributions to the PKI system “by default” suggests that in the first year the rate will be 0% of salary, and every year will increase by 1% before reaching 6% in subsequent years. At the request of the employee rate will change.
For participants of the PKI assumes a “trial period” for a period of a year during which they have the right to take “vacation” for the payment of contributions or to refuse further payment. “Vacation” can be taken for up to five years and renew them unlimited number of times. If not to extend a vacation, the payment of contributions is resumed. The presence of such a “trial period” gives you the right to say that workers ‘ rights, which entered into COE under the simplified procedure, are not violated, according to the authors of the concept.
To encourage employees to engage in IPK expected tax benefits in the amount of contributions paid will be given a tax deduction for personal income tax, but not more than 6% of salary per year. In the new version of the concept clarifies that the deduction will be provided in addition to the current social tax deduction.
According to Finance Ministry estimates, the value of lost income tax due to the deduction amount from 33.3 billion to 111,1 billion roubles (with participation in IPK 30 to 50 million people).
To encourage employers contributions to the Institute (up to 6% of the salary of each employee) will be deducted from the tax base on profit increase the coefficient of 1.03 in the first six years from the date of entry of the employee into the system, to 1.06 in the coming years.
The concept assumes that the pension savings of citizens, storing them in non-state pension funds (NPF), will be automatically enrolled in as a first contribution to the Institute. State savings will be recorded in the transitional campaign of 2016.
For the rest of the citizens of NPF will be randomly determined in accordance with a specific average weight of each Fund in the total amount of pension savings of mandatory pension insurance (OPS) in the NPF over the past three years. In addition, any citizen will be able to apply and pay contributions to the Institute on their own.
Maintain a registry of retirement accounts, or contributions to the applications of PKI participants about the selection and change of pension funds and the scheme contributions and pre-distribute the participants between the NPF will be a Central administrator. A modified version of the concept suggests that the supervision and control of the Central administrator shall provide the Bank of Russia.