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Putin suggests postponing pension bill to 2014

New pension formula to be worked out by July 2013

NOVO-OGARYOVO, November 14 (Itar-Tass) — Russian President Vladimir Putin has suggested postponing, to 2014, the coming into effect of the new pension bill.

"I believe it is possible to adopt the bill proposed by the lawmakers, but its coming into effect should be postponed to January 1, 2014," he said during a conference over pension reform on Wednesday.

The head of state explained that the federal budget and the budgets of social funds had already been drawn for the period until 2014.

The citizens who joined the defined contribution pension system will be able to keep it after the pension reform, Vladimir Putin stated during a conference over pension reform on Wednesday.

The system has already begun to operate, for the citizens who receive high average incomes and voluntarily decided to join pension funds, both state-owned and private. I believe it will be right not to deprive them of the opportunity but keep this opportunity for them after January 1, 2014: those who wish to keep this system, may keep it; we should give them the right of choice," he explained.

"It will be a good signal to the market," the head of state said, "I also mean the opportunity to continue /the activity/ and the economic expediency to continue the operation of the financial bodies working in this area."

Additionally Vladimir Putin has ordered to work out a new pension formula by July 2013.

"It should be finalized and adopted no later than the first half of the next year," he said during a conference over pension reform on Wednesday.

President Vladimir Putin ordered the government to decide by yearend on the mechanism to use Pension Fund savings.

"As for the use of savings, I expect the Finance Ministry and the government in general to make a decision on the issue," the head of state stated , "Offer your variants to use the so-called long money, the pension money, which will amount to some two trillion roubles by the end of the year.”

Putin noted that a legal basis and bylaws were essential for the issue of infrastructure bonds. It is the large infrastructure projects that are most effective and profitable investment.

"These mechanisms have not been perfected yet: I'd like to have the work on them finished by the end of this year," Putin stated.

He noted that the proposals and discussions over this theme have been on for more than 18 months. "We've been telling to ourselves and the society for 1.5 years how effectively we'll be using these funds," Putin said adding that the road and railway infrastructure are regarded as one of the effective methods to invest funds.

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