The Russian Pension Fund has drafted the Federal Law on the PFR Budget in 2019 and the Planning Period of 2020 and 2021.
The 2019 budget will have 8.6-trillion-ruble revenue and 8.6-trillion-ruble expenditures, which will exceed the 2018 budget parameters by 358.2 billion rubles (104.3%) in revenue and 115.9 billion rubles (101.4%) in expenditures.
Mandatory pension insurance contributions will be paid in 2019–2021 at the permanent 22% rate, plus the 10% rate for sums exceeding the maximum amount of the insurance contribution base.
Federally-funded pensions, benefits and other payments will rely on 3.3-trillion-ruble transfers from the federal budget in 2019, including 1.9 trillion rubles to fund insurance pensions.
Insurance pension expenditures of 2019–2021 are calculated with due account of the pension reform modified by the Russian president’s address of August 29, 2018.
The calculations included the 1,000-ruble raise of old-age insurance pensions of non-working pensioners over the year, and the January 1 indexation of 7.05% in 2019, 6.6% in 2020, and 6.3% in 2021, which will increase pensions of this category of pensioners to 20,000 rubles by 2024.
As a result, an average amount of the old-age insurance pension of non-working pensioners will stand at 15,400 rubles in 2019 and grow to 20,000 by 2024.
Social pensions will be increased on April 1 consistent with the growth of the pensioner’s subsistence minimum of the previous year. The raise will amount to 2.4% in 2019. An average social pension will be 9,215 rubles in 2019 (104.2% of the pensioner’s subsistence minimum).
For the purpose of maintaining the minimal financial support to non-working pensioners, the PFR budget assigns funds for the federal social supplement increasing the pensioner’s income to the pensioner’s subsistence minimum differing from one constituent territory to another.
All other proposals made by Russian President Vladimir Putin to soften the pension reform bill were included in the PFR draft budget (they will be presented in the form of second-reading amendments).
On the whole, the Fund budget covers every pension, benefit, and other social payment envisaged by Russian laws.
The Fund has a balanced budget, and the deficit of 23 billion rubles in the area of funded pensions is technical since it is compensated with accumulated pension savings on the Fund’s balance.