Government doubles contributions of individual participants in pension co-financing program

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29 may 2018

Voluntary contributions of individuals participating in state pension co-financing program accounted for 5.3 billion rubles in 2017. In line with the legislation, in May 2018, the state co-financed these contributions for the total amount of 5.1 billion rubles. In addition to voluntary contributions of individuals and government funds, employers as third party to the program also contributed to the funding in 2017. They have transferred over 92 million rubles. Thus, in 2017 the total amount of contributions to the program accounted for 10.5 billion rubles.

The same as before, the government contributes less than individuals as some payments were under 2.000 or over 12.000 rubles while only contributions ranging from 2.000 to 12. 000 rubles a year are subject to co-financing.

With the 2017 contributions the total amount since the launch of the Program accounted for 56.4 billion rubles, while the government co-financed 54.9 billion rubles in the same period. Another 870.5 million rubles have been contributed by employers. As a result the total amount of pension savings accumulated by all the participants in 2009-2017 has exceeded 112.2 billion rubles. These funds have been considered on personal accounts of individuals and transferred to asset management companies and pension funds for further investment.

As well as other pension savings, funds accumulated within the Program are paid upon retirement, and in case of death to an individual’s assignees. In 2017, 21.600 people were paid over 331.7 million rubles as part of this program.

It should be noted that the current halt of mandatory insurance contributions to cumulative pension savings doesn't affect the program of pension co-financing. Besides, citizens can independently accumulate their pension savings as part of the mandatory pension insurance by making a respective application at the Pension Fund.