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New draft of pension reform strategy to be ready by mid-November

October 23, 2012, 16:51 UTC+3

“If nothing is done today, the average pension in 2023 will be a tiny 14,000,” Deputy Prime Minister Olga Golodets said

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MOSCOW, October 23 (Itar-Tass) — A final version of the pension system development strategy up to the year 2030 will be finalized by the middle of November, Deputy Prime Minister Olga Golodets said during a discussion of the document at the Public Chamber.

“As of November 1 we shall have all amendments to the strategy, and by November 15 they will be formalized as one document,” she said. Golodets recalled that the discussion of the document was to end November 1.

“We know for sure that there will be amendments to the work record requirement,” she said. “It will be reduced to 35 years.”

Golodets said that the current situation required changing the existing pension system.

“These days we have set the task of steady pension rises,” she said. “If nothing is done today, the average pension in 2023 will be a tiny 14,000.”

If the pension system follows the new scenario, the average pension by that time will reach 24,000 rubles. She said “the people who are beginning to get a decent wage are starting to talk about a decent pension.”

In that respect the Russian government pins great hopes on the development of corporate pensions. The substitution rate may achieve 15 percent.

Golodets pointed to the existing imbalance between insurance contributions for hired employees and the self-employed population.

“For instance, wealthy people, such as lawyers and notaries pay a mere 14,300 rubles a year,” Golodets said. “This sum is not enough to pay the pensions of their parents. It turns out that their pensions are financed by the steel workers and employees of other industries,” Golodets said.



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