Federal law “On the stimulation of voluntary pension savings” comes into effect from 2009 in Russia

During the traditional brifing at the House of Government  the administrator of the Pension Fund Department in the Republic of Tatarsatan Marsel Imamov talked to journalists about the system of voluntary pension savings stimulation established to increase citizens’ pension provisions.

Thus, according to the fedral law “On the stimulation of voluntary pension savings” the citizen can expect to receive government support in pension savings forming in case between October 1, 2008 and October 1, 2013 he or she files an application of voluntary accessing jural relationship of obligatory retirement insurance for the purpose of paying additional insurance payments for the accumulation part of retirement pension.

If employee annual payment makes up not less than 2000 rubles the state places on the employee individual personal account 1000 rubles for each 1000 rubles of voluntary payments (but no more than 12000 rubles per year). For individuals who had attained the retirement age and did not apply for setting any part of retirement pension the state transfers 4000 for each 1000 rubles (but no more than 48000 rubles per year).

Thus, employee can pay any amount of annual voluntary payment but not less than 2000 rubles. The state, on its part, is ready to co-finance only 12000 rubles of annual payments, or 48000 (for working pensioners who do not receive the retired pay).

Marsel Imamov argues that additional means can also be placed on citizens’ personal accounts by employer. These additional insurance payments for benefit of insured individuals transfered by employer on his own initiative are not co-financed by the state, but such payments provide good impetus for employee.