The PFR continued to temporarily deposit pension savings at financial institutions in 2017. Only highly reliable banks, which meet the legislative requirements, qualified for those deposits.
The overall PFR revenue on pension savings temporarily deposited at financial institutions reached 5.14 billion rubles in 2017, which is equivalent to 8.8% of the annual interest.
The PFR’s return on temporarily deposited funds significantly exceeded the 2017 inflation rates in Russia (2.5%) and was comparable to performance results of other pension saving investors.
For comparison, the profitability of the expanded portfolio of the Vnesheconombank state management company stood at 8.6%, and private management companies posted 10.7% profitability rates in 2017. The aggregate calculated yield of private pension funds amounted to the 3.2% annual interest over the first nine months of 2017.
The 5.14-billion-ruble revenue included the 4.94-billion-ruble return on depositing mandatory pension insurance reserves and the 0.2-billion-ruble return on depositing current insurance contributions and additional insurance and employer contributions.
In all, the PFR held 14 depositing auctions in 2017 (including 12 on the platform of the PJSC MICEX-RTS Moscow Interbank Currency Exchange, and two on the trading platform of the JSC St. Petersburg Currency Exchange), which resulted in 48 depositing agreements. The deposit turnover topped 270 billion rubles. Deposit rates ranged from 7.5% to 10.15%. The deposit period varied from 13 to 178 days.