Govt. approves Russian Pension Fund’s budget report 2018The government discussed and approved the PFR budget report 2018 at today’s meeting and decided to submit the report for consideration by the Federal Assembly.

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23 may 2019

The government discussed and approved the PFR budget report 2018 at today’s meeting and decided to submit the report for consideration by the Federal Assembly.

The PFR budget’s revenue reached 8 269.6 billion rubles in 2018. Mandatory pension insurance contributions grew by 10.4% to 4 948.4 billion rubles over the year.

Funding of the pension system has been on the rise. Contributions amounted to 73% of the funds paid as insurance pensions in 2018. The federal budget provided the remaining amount to increase insurance pensions and to pay benefits assigned by the government to insuring parties and citizens.

The federal budget transfer funding the payment of insurance pensions reduced by 231.6 billion rubles in 2018, while transfers for mandatory pension insurance, which are part of the general transfer of funds for insurance pensions, decreased by 300.3 billion rubles or 32.2%.

The size of pensions and social benefits keeps growing. During the year, the Pension Fund provided the full and timely payment of all types of pensions and social benefits and implemented every planned measure to raise their amount.

Insurance pensions of 33.8 million non-working pensioners grew by 3.7% on January 1 (compared to 2.5% inflation rates in 2017). An average amount of the old-age insurance pension grew by 423 rubles to 14,200 rubles by yearend.

State pensions, including social pensions, were increased by 2.9% on April 1 consistent with the growing subsistence minimum. Pensions were raised for 3.3 million people. An average amount of social pension, the most frequent type of the state pension, grew by 287 rubles to 9,100 rubles.

The monthly social benefit paid to 15.2 million federal benefit holders, including persons with disabilities, war veterans, citizens exposed to radiation, heroes of the Soviet Union, Russia, and socialist labor, and other categories of citizens, grew by 2.5% on February 1.

In 2018, 3.8 million non-working pensioners were receiving the monthly federal supplement, which increased their pensions to the amount of the pensioner’s subsistence minimum in pensioners’ home regions. An average amount of the federal social supplement stood at 1,900 rubles.

The total amount of insurance and state pensions paid in 2018 increased by 394 billion rubles (5.8%) to 7.2 trillion rubles. As many as 6 749 billion rubles were paid as insurance pensions, and 453.7 billion rubles as state pensions.

The PFR budget had total expenditures of 8 428.7 billion rubles in 2018.

Given the amount of revenue and expenditures, the PFR budget had a deficit of 159.1 billion rubles, including 48.9 billion rubles of distributive funds, and 110.2 billion rubles of contributive funds.

The deficit of distributive funds largely resulted from carryover budget balances in the beginning of 2018. The deficit of contributive funds was technical and resulted from pension saving balances, including the ones in trust management and temporarily deposited. These funds amounted to 1 244 billion rubles in the beginning of 2018.