Russian Ministry of Labor will Return t the idea of Individual Contribution to Contributory Pension

The level of contribution will depend on the level of income. 13.May.15 2:34 PM By Anna Nekrasova Photo Toinnov.com    407

Russian Ministry of Labor is planning to review and discuss the idea of implementing individual contribution to contributory pensions in 2016. Such contribution can be formed from monthly salary of very citizen. According to available information such initiative was proposed by Alexander Shohin who is the president of Russian Union of Industrialists and Entrepreneurs. He offers to implement system of financial contributions to pensions which are supposed to be 1-2% from salary. Minister of Labor Maxim Topilin offered reviewing this question in 2016. Final decision will mostly depend on the level of citizen’ income. At the same time this scheme is better to be implemented during the second stage f pension reform between 2016-2013. It should also be noticed that contributory basic was banned in 2014. Later it was prolonged till the end of 2015. That is why all financial contributions were mainly forwarded on insurance. Ministry of Labor offered several times o implement contributory pensions on voluntary basics while obligatory part of contributions should be rejected. However Dmitry Medvedev decided to keep this part of pension for citizens.

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