Govt. co-funds voluntary funded-pension contributions made in 2018

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31 may 2019

Voluntary contributions paid by participants in the program of state co-funding of pension savings totaled 4.9 billion rubles in 2018. Consistent with the program conditions, the government contributed 4.7 billion rubles for the co-funding purpose. 

Just like before, the amount of state co-funding fell short of the funds contributed by program participants, since some participants contributed either less than 2,000 rubles or more than 12,000 rubles and co-funding applies only to contributions ranging from 2,000 to 12,000 rubles a year.

Voluntary contributions of citizens and state co-funding were supplemented with contributions of employers, as the third party to the program. Employers contributed over 85.3 million rubles to the program in 2018 on behalf of their workers.

Hence, all types of contributions made to the pension co-funding program reached 9.7 billion rubles in 2018.

Voluntary contributions made since the beginning of the program currently amount to 61.2 billion rubles, while the overall state co-funding stands at 59.6 billion rubles. Employers contributed 956 million rubles more. Over 121.8 billion rubles worth of pension savings were formed as a result of the program in 2009–2018.

The funds were credited to the accounts of program participants and directed to management companies and pension funds chosen by contributors for investment purposes.

These pension savings will be received by program participants upon retirement. In the event of a participant’s death, the money is paid to survivors irrespective of whether the payments started during the participant’s lifetime or not.

The number of pensioners receiving monthly payment from the state co-funding program increased to 26,000 in 2018. Total payments increased over the year to 428.3 million rubles.

Read more about the program of state co-funding of pension savings.