Russia introduces new rules for the formation of pension rights and old-age retirement pensions starting from January 1, 2015. The rules have been elaborated by the Russian Labor and Social Protection Ministry within the Strategy of Long-Term Development of the Pension System in the Russian Federation endorsed with Russian Government Resolution No2524-r dated December 25, 2012, with support from relevant ministries, the Russian Pension Fund and experts.
“Obviously, big significance will be ascribed to the period of service of the future pensioners,” Russian Labor and Social Protection Minister Maxim Topilin said today, presenting the new pension formula. “The longer the period of service is, the bigger the pension will be.”
“A decision has been made to set a multiplying ratio for pensioners with the period of service of 30 and more years for women and 35 and more years for men as of the retirement moment,” the Russian Labor and Social Protection Minister said. “In addition, the new model contains the principle of an additional pension increase for persons who volunteer – and I would like to stress that condition – to delay the moment of their retirement,” he added.
We took the world experience of pension systems into consideration when developing the formula, Maxim Topilin noted. For instance, the system of coefficients, upon which the model of calculation of pension rights is based, was borrowed from France and Germany.
It is important to note that the new formula does not increase the retirement age and does not enlarge insurance contributions of employers.
In the opinion of the authors, the new system is going to promote larger pensions of the middle class. The average pension is to be no less than 2.5 minimal wages by 2030.
Pensions are continuing to grow under the new formula, i.e. the principle of regular pension increase will be preserved. There will be also the guarantee of a pension no smaller than the subsistence minimum.
“The entire accrued pension rights will be preserved fully within the framework of the new formula,” Minister Maxim Topilin stressed.