Overview

The law aims to increase Russian citizens’ pension provisions by encouraging people to save for their pensions with the help of an incentive program that will co-finance additional insurance contributions paid by citizens into the Pension Fund. Co-financing is funded by money from the National Prosperity Fund, which forms part of the federal budget.

People who voluntarily join the program between October 1, 2008 and October 1, 2013 will qualify for the offered state support. State support will continue over a ten-year period, starting from the year following the year of the insured individual’s payment of additional insurance contributions to the personal savings component of the pension. The individual decides on the size of the additional contribution (it can be from 2,000 roubles to 12,000 roubles a year). The state will provide the same amount under the co-financing scheme.

Individuals can make the contributions themselves (through credit organisations) or organize them through their employer. Over 7,7 million people have already joined the co-financing program.

The State has transferred into the program participants’ pension accounts over 10 billion roubles.