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Friday, October 28, 2016

The Minister of labour explained why the Russians have again taken away pension accumulation

The Minister of labour and social development of Russia Maxim Topilin in an interview with “the Newspaper.<url>” I predicted the freezing of the pension, which the Russians is expected in 2017.

photo: Natalia Gubernatorova

He explained that now, all pension contributions (22% from each employee, which includes cumulative 6%) go to the Pension Fund to pay current retirees. Recall that future retirees instead of real money on their accounts getting abstract points, the size of which in roubles in the future will be to establish a government based on the capabilities of the budget.

Read how Topilin argued with Siluanov.

Topilin explained that due to “freezing”, i.e. the withdrawal of the savings element of pension contributions from working people now, the Pension Fund this year has received 342 billion rubles.

In the coming year, according to him, this amount will increase to 390 billion and if not to continue the “freeze”, then they will have to look in the budget. And that they the state, the Minister from the Ministry of Finance “did not hear”.

Recall that according to media reports, the “freeze” funded pensions is planned to be extended to all of the following three years, until 2020. At the same time it is planned to freeze and expenditure items of the budget that will lead to a real reduction in public spending, particularly to support the regions and various social programs.

Speaking about the indexation of pensions to inflation rates, Topilin said that now can not tell anything specific, and the answer is expected after August 2016, when will be announced the financial results of the first half. While none of the members of the government did not give concrete promises on the indexation of pensions.

Rising prices and a falling ruble. Chronicle of events

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