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Cancelling retirement savings out of question — Russian Deputy PM

More than 8 million people in Russia are currently covered with private pension provision

Deputy Prime Minister Olga Golodets Alexei Druzhinin/Russian Presidential Press and Information Office/TASS

Deputy Prime Minister Olga Golodets

© Alexei Druzhinin/Russian Presidential Press and Information Office/TASS

VLADIVOSTOK, September 2. /TASS/. Cancelling retirement savings is out of the question, the system should be supported by all development institutions, Deputy Prime Minister Olga Golodets told TASS on Friday.

Read also

Russian Prime Minister: No decision yet on raising retirement age

"Our pension strategy, adopted by the government in 2012, has a separate section - development of private pension coverage. It is a very important component of the entire pension reform and the pension system. This system has the right to life, it must be supported by all development institutions," Golodets said.

According to her, more than 8 million people in Russia are currently covered with private pension provision.

However, according to Golodets, the system needs to be reformed. "We must transition to an individual system contracts system. The state system cannot be involved in this, because every person must choose solutions, build contracts with private pension funds. It should be completely separate from the state system," Golodets said.

Read also

Debates on higher retirement age picking pace in Russia

Deputy Prime Minister Olga Golodets told journalists earlier that it was decided to freeze retirement savings.

"Retirement savings will be frozen," Golodets said adding that transfer to the pension fund is not planned. "We have not planned it, extreme limits have already been reached," Golodets said.

The decision on freezing of retirement savings was announced for the first time in September 2013 in preparation of the state budget for 2014.

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