Overview

Obligatory Pension Saving (OPS) is the main source of pensions in Russia.

The employer makes insurance payments in the amount of 30% of the employee payroll on top of the wages throughout the work period. The major part of these funds (22%) is transferred to your pension savings account in the Pension Fund of Russia and is distributed between the two parts of your retirement pension: the insurance part of the pension (16%) and the accumulative part (6%).

The insurance part depends on your time record and the size of your salary. This part of pension is included in the retirement settlement capital (the pension payments to today’s retirees) which is adjusted on a yearly basis by the factors established by the Government of Russia.

The accumulative part of pension depends on the amount of pension accumulations formed by the employer’s insurance payments and the investment income. The accumulative part of pension is the only part of retirement pension which can be affected by a citizen directly.

Participants: males and females of 1967 year of birth and younger*.

Every employed citizen has a personal account in Pension fund of Russia where his retirement savings are accumulated.

By default, the money is managed by a state management company.

You are entitled to choose the organization that is responsible for maintaining your retirement savings account and investment of the savings.

This service is free for you and doesn’t require payments from your side, since your employer makes them in the form of retirement insurance payments.

^{* Participants of the obligatory pension saving program: Russian citizens of 1967 year of birth and younger (Federal law No. 167-FZ as of 15.12.2001) allocations from the wages of the males of 1953 to 1966 year of birth and females of 1957 to 1966 year of birth are not made, however the citizen is entitled to control the funds accumulated within the period of 2002-2008, having transferred them to management by a private pension fund.}

^{** Average value for 2007 – 2010 in Russia}

^{*** The accumulative part of pension by the moment of retirement for a man of 32 and a woman of 27 with a monthly income of 30 thousand roubles. Withoutadjustmentforinflationandincreaseofsalary}