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MOSCOW, June 25 (Itar-Tass) - A new pension reform envisages that a pension allowance will be tied to the duration of a pensioner's work record, Deputy Trade Minister Andrei Pudov told the Public Chamber which discussed this problem on Tuesday.
"The new pension reform envisages that the size of a pension allowance in this country directly depends on the duration of a pensioner's work record, whereas at present it does not," Pudov said.
"Very many people have complained that they worked all their life, but despite that are paid miserable pensions. We did our best to improve the situation," said Deputy Chief of the Pension Fund of the Russian Federation Sergei Afanasyev.
The pension reforms mostly aim to give an impetus to workers entitled to pensions to postpone the retirement until a later period. Then, the insurance component of the pension allowance will be increased every year a worker stays at work beyond the retirement age. In case of a five-year postponement the old age pension will be increased 1.5 times.
The proposed pension reform envisages three basic components in the structure of a pension allowance - the fixed sum, the insurance and savings components. The pension size will be calculated, taking into account the pension coefficients - the size of the salary of a retired worker, the duration of his work record and the actual retirement age.