PFR Summarizes 2017 Transition Campaign Results

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19 march 2018

The Pension Fund of Russia has summed up the results of the 2017 transition campaign to transfer citizens' pension savings to non-state pension funds (NPFs) and management companies (MCs).

In total, during the transition campaign of 2017, citizens submitted to the PFR 6.3 million applications for the selection of NPFs or CCs. The number of accepted applications was 4.9 million, which is 77.8% of the total number of applications under review, including:

2.85 million people transferred their pension savings from PFR to NPF (58.2%);

1.96 million people have made the switch from one NPF to another NPF (40.1%);

76.7 thousand people returned from NPF to PFR (1.6%);

4.9 thousand people changed the management company (0.1%).

The Pension Fund was receiving applications both for an early transfer (at year-end) and for a “five-year” transfer. It is to be recalled that if the transfer from one fund to another is made more than once every five years, the citizen loses his investment income since the time of the previous transfer. Thus, there were 4.89 million applications for the early transfer of pension savings in 2018, which is 99.8% of the total number of granted applications, including:

2.6 million applications from PFR to NPF (58.3%);

1.96 million applications from NPF to another NPF (40.2%);

76 thousand applications from NPF to PFR (1.5%).

The period for consideration of 0.26 million applications of citizens (applications for a “five-year” transfer) has not yet come. The period of consideration of these applications by the Pension Fund in accordance with the current legislation is due in 2022.

According to the results of the 2017 campaign, 1.42 million applications were not granted. The main rejection causes were as follows:

- applications filed with a post date - 0.53 million (37.1% of the total number of rejections);

- a citizen filed an application with the PFR, but the PFR received no NPF notification of the newly concluded mandatory pension insurance agreement with the citizen, that is, the application to the PFR was not backed by the agreement with the NPF - 0.35 million (24.6% of the total number of rejections);

- a citizen filed an incorrect type of application - 0.23 million (16.3% of the total number of rejections);

- a citizen filed an application in favor of the current insurer - 0.11 million (7.5% of the total number of rejections);

- a citizen filed an application violating the established procedure for filing (several applications were submitted in one day) - 0.02 million (1.2% of the total number of rejections).

The Pension Fund will transfer pension savings to non-state pension funds and management companies in accordance with the choice of citizens within the timeframe established by the legislation by March 31, 2018.

Information about the number of transfers to individual non-state pension funds should be requested in the relevant NPFs.