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Minfin Reserves Funds to Return 2014 Pension Savings

03.10.2013 22:12 / PRIME

The Russian Finance Ministry plans to create reserves for the return of pension savings made in the year 2014, now due to be transferred to the distribution system, head of the Ministry for Economic Development Alexey Ulyukaev told the press.

According to him, on Thursday, the Government approved six pension reform bills with minor amendments to be introduced by the State Duma.

The reserve will be created by Minfin from funds saved in transfer to the Pension Fund of Russia, due to the 2014 pension savings passed on to the distribution system, Ulyukaev said at a press briefing following the Government session. He pointed out that additional measures are required to create the reserve.

Head of the Civil Initiatives Committee, ex-Finance Minister Alexey Kudrin sees the 2014 growth moratorium on the funded component of pensions as an extremely bad move, undermining the investment climate.

Minfin proposes to channel all private pension savings for 2014 into the mandatory pensions distribution system. The scheme is part of the draft of the 2014-2016 Federal Budget, introduced to the State Duma on Monday.

“I think the Government has made a grave mistake by suspending people’s savings for a year”, Kudrin told the press. “This decision will undermine the investment climate”, he added.

Non-state Pension Funds industry reformProject Group №1