the introduction of funded pensions has changed the behavior of citizens – Kommersant

The introduction of a funded pension since 2002 has changed the behavior of citizens – they began to rely not on the state, but on themselves, the Ministry of Finance believes. So the department commented on the conclusions of the RANEPA that the results of the introduction of funded pensions were rather unsatisfactory.

Experts drew attention to the fact that the average gross profitability of portfolios of non-state pension funds (NPF) in 2005-2020 outperformed inflation slightly. As specified in the RANEPA, according to the criterion of net profitability, the funds yielded to both inflation and private management companies (PMCs).

The Ministry of Finance agreed that the creation and development of the funded component of the mandatory pension insurance system coincided with a period of difficult economic conditions. This, according to the department, had a negative impact on the profitability of investing in NPF savings.

“Undoubtedly, the annual profitability received by non-state pension funds based on the results of investment from the moment they began their activities was insufficient for a number of objective reasons,” they clarified. RBC in the Ministry of Finance, without naming these reasons.

The Ministry is convinced that the supervision introduced by the Central Bank (CB) and the change in the regulation of the activities of NPFs will allow them to become a “reliable provider” in generating additional income for citizens. “Since the creation of the funded component, it has been possible to change the paternalistic behavior of citizens (when a citizen believes that his pension income should be formed by the state) to an understanding of the need to independently generate additional income for a future pension,” the Ministry of Finance believes.

In April, the government supported the bill of the Ministry of Finance and the Central Bank on the launch of a new long-term savings program for citizens. Those who agree to participate in the program will be able to reinvest in it the funds of their previous funded pension, as well as form savings through new contributions and amounts transferred by the state as part of co-financing. Savings can be used after 15 years of participation in the program or at age 55 for women and 60 for men.

Details – in the material “Kommersant” “Goodwill Pensions”.

Laura Keffer