Russia Proposes New Voluntary Pension System

Non-state pension funds (NPF) proposed creating in Russia a system that will increase income upon reaching retirement age.

Consensus

Non-state pension funds in Russia have proposed a new pension system with voluntary contributions from both employers and employees.
The system aims to increase retirement income and improve the replacement rate of lost earnings.
The initiative is being developed by the National Association of Non-State Pension Funds (NAFPF).
The proposed system will operate in parallel with the Long-Term Savings Program (PDS).
The replacement rate is projected to reach 30% by 2045 and 40% by 2060 with monthly contributions of 3.5% from both employer and employee.
The system is not yet under government review and no legislative draft has been prepared.
The goal is to reduce the income gap between working population and pensioners.

The initiative is considered interesting by economist Yuri Tverdokhleb, who believes it could give employers a competitive advantage in the labor market and motivate employees to stay with companies making pension contributions. — gazeta_spb
The system is called the 'Established Pension Plan' (Upp), and it does not include state co-financing, unlike the Long-Term Savings Program (PDS), which provides up to 36,000 rubles annually. — vm
The head of the Strategy Committee of the NAFP and board member of the 'BUDUSHCHEE' pension fund, Galina Morozova, confirmed the proposal and provided the same projections for the replacement rate. — vesti