Russian Pension Fund sums up results of 2018 transfers

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29 march 2019

The Russian Pension Fund has summed up results of pension savings’ transfer to private pension funds and management companies in 2018.

As many as 1.96 million transfer applications were filed with the PFR last year, which was 66% fewer than in 2017. Some 1.6 million requests or 81.6% of the total number were granted.

Mostly, funds were transferred from one private pension fund to another (936,000 persons or 58.5%), including 78,700 persons who transferred their funds in connection with a private pension fund’s reorganization.

A total of 587,300 persons (36.7% of all who filed for transfer) moved their pension savings from the PFR to a private pension fund, 74,000 (4.6%) returned their funds to the PFR from a private pension fund, and 2,700 (0.2%) chose another management company while keeping their funds at the PFR.

Applications of 346,200 persons filed in 2018 were denied. Same as before, most denials resulted from duplicated applications, i.e. several applications filed by the same person. By law, only one application, which is filed at the latest day, is processed in this case.  A total of 113,700 applications (32.8% of all denied ones) were rejected for that reason.

Some 107,800 applications (31.1% of all rejected) were denied due to a lack of the mandatory pension insurance agreement between the insured person and the private pension fund to which the person planned to transfer one’s pension savings.

Almost 100,000 applications (28.8% of rejected) were filed with mistakes, for a wrong type of application (77,500 or 22.4%), request for transferring pension savings was filed after applying for assignment of a funded pension (9,000, or 2.6%), request for transferring pension savings to the fund, which was managing them already (7,200, or 2.1%), and several applications filed on the same day (5,800, or 1.7%).

In the end, the Russian Pension Fund transferred 40.4 billion rubles to private pension funds and 0.3 billion rubles to management companies.

The return on investment assigned by the PFR to mandatory pension insurance reserves as a result of premature transfers from the PFR to private pension funds amounted to 11.4 billion rubles.

As of now, 39.05 million insured persons are forming their pension savings with the state management company Vnesheconombank, 37.49 million with private pension funds, and 0.3 million with private management companies.

Information about the number of transfers to private pension funds is provided to relevant private pension funds.