The Committee of the state Duma supported the draft law on freezing of pension savings in 2016

MOSCOW, November 5. The state Duma Committee on labor, lipolytica and veterans ‘ Affairs on November 5 recommended the chamber to approve in the first reading the government draft law on freezing of pension savings of Russians in 2016. It is expected that the document will be submitted to the plenary session on 13 November.

According to him, in 2016 “full size individual portion of the rate of the insurance premium (16%) will be directed to financing of insurance pension in the distribution component of the pension system”.

Due to this the income of the budget of the Pension Fund of the Russian Federation “in the part not connected with formation of means for financing of funded pension, will increase by 342,2 billion rubles”. This will allow us to use these funds for current payments of pensions and insurance “reduce the specified amount to the transfer of the Federal budget for compulsory pension insurance”, say the developers. They remind that similar decisions were taken in 2014 – 2015.

“Does not reduce the amount of the pension rights”

As highlighted earlier, Prime Minister Dmitry Medvedev, freezing of pension savings in 2016 does not reduce the amount of the pension rights and does not mean that the government stops work on accumulative pensions.

He noted, “the current situation dictates a certain set of decisions.”

According to estimates of the Ministry of Finance of the Russian Federation, freezing pension savings will give the budget an additional 342,2 billion. Due to the freeze of pension savings will be formed a second Fund to support sectors of the Russian economy, said the head of the Ministry of Finance of the Russian Federation Anton Siluanov.

“We hope that this resource will be saved, and when the results of execution of the budget next year will be able to make a decision about how to dispose of them properly in different ways,” said the Finance Minister.

The Minister also hoped that the extension of the moratorium on transfer of pension savings by 2016 will be the last.

Pension moratorium

In September 2013, during the preparation of the state budget it was announced that in 2014 the transfer of funds to the funded part of pensions will be frozen and all money will go to the insurance part of the pension Fund. It was reported that this would save 244 billion roubles of budgetary funds which otherwise would have to spend to cover the deficit of the Pension Fund.

August 5, 2014 Deputy Prime Minister Olga Golodets said that the government has decided to extend freezing of pension savings for another year, and discusses the idea of complete renunciation of funded pensions.

1 December 2014 Russian President Vladimir Putin signed a law extending the freeze of pension savings in 2015, it was Reported that this will increase the incomes of the FIU in 2015 307,4 billion rubles.