The Ministry of Finance has prepared a reform of the funded pension, including the unfreezing of assets and a new IIS

The Ministry of Finance of the Russian Federation intends to submit to the State Duma a bill on a new voluntary funded pension system by the end of December. The main instrument for stimulating savings will be a new type of IIS. It is reported Vedomosti with reference to the plan of normative legal work of the ministry.

Anatoly Aksakov, chairman of the State Duma Committee on the Financial Market, said that the document would include tax incentives and the transfer of pension savings to citizens, which had been frozen since 2014.

According to Mr. Aksakov, the document may be submitted to the State Duma in early December. “We will try to accept, if not this year, then in the first quarter of next year for sure,” the deputy said. Mr. Aksakov in May informedthat the bill on the reform of funded pensions is planned to be submitted before the end of July.

According to a source close to the government, the main tool for stimulating savings will be the system of individual investment accounts (IIA, a brokerage account with the possibility of obtaining tax deductions). It is expected that a new type of IIS will be oriented towards pension savings.

The changes will be targeted at the wealthiest Russians, experts suggest.

Until 2014, 6 percentage points of the insurance rate of 22% were the funded part of the pension. She could dispose of more freely than insurance. Since 2014, the government has decided to allocate these 6 percentage points to the insurance pension. For the last time President Vladimir Putin extended decision to freeze until the end of 2024. Now the Ministry of Finance is proposing to once again give citizens the right to dispose of funds that were previously frozen.

About the long-term work of the Ministry of Finance on the funded pension reform – in Dmitry Butrin’s column “Pensions in Russia have to wait a long time”.

Leonid Uvarchev