“The proposed mechanism is as follows: when savings are transferred to the insured individual, the private pension fund will form a reserve. Simultaneously, private pension funds will make a payment to the Deposit Insurance Agency, just as it happens in the banking sector”, said Shuvalov at a meeting with Dmitry Medvedev on Monday.

Shuvalov stated that in the event of a lack of funds, the citizen will receive pension from the private pension fund’s reserve fund, and if these are insufficient – from the Deposit Insurance Agency funds and reserves. This will guarantee pension payments even in the event of a financial crisis.

Shuvalov said that a public discussion of the draft bill is proposed, since the security of PPF money will affect long-term investments and their possible role in infrastructure projects.

“We should probably run this through the Open Government and then introduce the bill to the Government”, said Medvedev.

Non-state Pension Funds industry reform, Project Group №1