Funded pensions to grow 9.13% in 2020

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26 may 2020

Funded pensions will grow 9.13% this year. The coefficient has been endorsed on the basis of returns on last year’s investment of pension savings, which thrice exceeded the inflation rate (3%). Pensions of 80,000 people will be automatically adjusted on August 1.

The raise will be also received by participants in the pension co-funding program, who receive payments on demand instead as a funded pension during the period of time chosen by the recipient. Such pensions are currently received by 32,000 pensioners. They will grow 7.99% in August.

The raise will cost 1.87 billion rubles, including 1.53 billion rubles to increase funded pensions and 343 million rubles to increase payments to participants in the pension co-funding program.

An average amount of funded pension currently stands at 956 rubles a month, while an average amount of the pension benefit paid on demand to participants in the pension co-funding program amounts to 1,705 rubles a month.

Both types of pensions are assigned at the former retirement age – 55 years for women and 60 years for men, or earlier if the applicant is entitled to early retirement.

The amount of pension saving payments grows annually on August 1 if there is investment return in the previous year (consistent with the Federal Law No.  360-FZ “On the Procedure of Funding Pension Saving Pensions” dated November 30, 2011).