Russia decided to change the system of payments of pension savings

The Russian Ministry of Labor decided to change the minimum amount of pension savings at which they are not paid to a citizen all at once but monthly and for life.

The department believes that an increase in savings will lead to an increase in the volume of lump sum payments. The Ministry of Labor asked the Pension Fund to 'work out' the possibility of changing conditions, the newspaper writes.

In particular, the Ministry of Labor proposes to make a lump sum payment if the assigned funded pension does not exceed 20 percent of the minimum wage.

Today, a lifetime funded pension is paid to Russians who have enough money in their account to make monthly payments more than 5 percent of the total pension payments. If the amount of savings has not reached the specified level, they are transferred at a time.

On October 22, the State Duma met once again to extend the freeze of Russians funded pensions. The lower house of parliament adopted the corresponding bill in the first reading. The contributions of Russian citizens to the funded part of the pension in the amount of six percent of the salary were frozen back in 2014. They are sent to the insurance part and spent on payments to current pensioners. The rule was supposed to be in effect until 2021, but Russian President Vladimir Putin extended the freeze to 2022. The current government bill implies the prolongation of the mechanism for another year that is, until the end of 2023. The document was submitted to the State Duma in September.