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Labor and Social Security Ministry posts pension reform draft

The draft says pensioners can count on 40% of their former salaries in the case of a 30-year labor record

MOSCOW, August 31 (Itar-Tass) — The Russian Labor and Social Security Ministry has posted a pension reform draft. The draft says pensioners can count on 40% of their former salaries in the case of a 30-year labor record. If the labor record is 40 years or more, the pension may grow to 70% of the former salary.

With this in mind, the ministry suggested a three-level pension model for Russia.

Level One is the labor (public) pension provided by mandatory pension security – insurance contributions of employers and employees. It ensures the ratio of no less than 40%.

Citizens who fail to meet mandatory pension security terms will have social pensions but only if they permanently reside in Russia for no less than 15 years.

Level Two is a corporate (voluntary) pension gained with additional insurance contributions paid under an individual or collective labor contract or an industrial tariff agreement.

Level Three is an individual (voluntary) pension made of voluntary contributions an individual makes to a non-governmental pension fund, an insurance company or a credit organization.

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