The Public Council of the Russian Pension Fund held a meeting in Moscow on July 17. Parameters of the fund’s budget in 2019 and the planned period until 2021 topped the agenda.
Budget parameters, which were presented to the Public Council, were elaborated consistent with the basic scenario of Russia’s socioeconomic development in the period until 2024 drafted by the Russian Economic Development Ministry with due account of the pending adjustments of the Russian pension system.
The Pension Fund’s budget revenue is due to reach 8.7 trillion rubles in 2019, which is a 5.1% year-on-year growth. Revenue will increase to 9.0 trillion rubles in 2020 (up 4%) and 9.4 trillion rubles in 2021 (up 3.7%). The PFR’s budget expenditures are planned at an amount of 8.8 trillion rubles in 2019 (2.9% more than in 2018). Expenditures will grow 3.8% to 9.1 trillion rubles in 2020, and 3.5% to 9.4 trillion rubles in 2021.
The PFR’s budget parameters are balanced in terms of distribution.
Insurance contributions to be paid to the Pension Fund’s budget are calculated by the basic mandatory pension insurance tariff of 22% and discount tariffs for certain categories of insuring parties. Some 5.2 trillion rubles worth of contributions are due to be collected in 2019, and the collection of contributions will grow to 5.4 trillion and 5.8 trillion rubles, respectively, in 2020 and 2021.
Federal budget transfers to the PFR budget will amount to 3.4 trillion rubles in 2019, and 3.5 trillion rubles in each of 2020 and 2021.
Principal parameters of the Pension Fund’s budget of 2019–2021 are based on the pension reform bill and the increase of insurance pensions at higher-than-inflation rates starting in 2019. There are plans to annually increase old-age insurance pensions of non-working pensions by 12,000 rubles, which will raise an average pension to 20,000 rubles by 2024. An average old-age insurance pension of non-working pensioners will amount to 15,400 rubles in 2019.
In addition, the Pension Fund’s budget parameters include funds extending the maternity capital program. The maternity capital amount will remain 453,026 rubles in 2019. Maternity capital will be adjusted by actual inflation rates of the previous year starting in 2020.
The PFR’s budget parameters presented at a meeting of the Public Council were approved for further consideration. They will be discussed at a meeting of the Russian Trilateral Commission on Regulation of Social and Labor Relations in July.
