Russian president proposes pension reform before 2014

Russian President Vladimir Putin proposed a new reform to be developed before June 2013 and recommended postponing of implementation of the bill on redistribution of pension payments until 2014, RIA Novosti reports.

Putin wants to focus attention on use of state and private pension funds and improvement of financial monitoring.

The Russian government proposed reduction of allocations to the accumulative part of the pension from 6% to 2% of the labour payment fund, redistributing the 4% for insurance of labour pensions. The idea was composed as amendments to the law on amendments to legal acts of pension insurance and the budget of the Russian Pension Fund for 2013 and plans for 2014-2015.

Putin approved the initiative and wants people to keep the opportunity of contributing to pension funds even after January 1, 2014.

President of the Russian Pension Fund Anton Drozdov said that the new formula would be ready by April 2013. Vice Premier for social issues Olga Golodets said that the reform was postponed until July 2013.