As the recent proposals have it, men and women born in 1967, and younger, will have accumulative pension deductions from their earnings left with a present-day 4% tariff. Its rise to 6%, previously scheduled for 2006, will be put off to 2008.
Men born in 1953 into 1966, and women 1957 into 1966 presently have 2% going on their accumulative pension accounts out of a total 14% insurance fees the employer is paying for every employee. Accumulative revenue rises, previously planned to start next year, will not concern them.
The entire 14% insurance fees will go to the insurance part of pensions. Accumulations on concerned persons' accounts will remain at their disposal, and may be invested in government or private managerial companies or nongovernment pension funds.
Those men and women will be entitled to extra pension insurance at 2% of their wages, at an annual threshold 2,000 roubles, roughly US$70, granted from the federal purse in case they pay voluntary accumulative insurance fees at 4% of their wages.
"What is more lucrative to a private person-to have pension obligations re-assessed as wages rise, or receive investment revenues? That's the whole matter," remarked Mr. Zurabov.
As he explained, a monthly wage of 8,000 roubles leaves an annual 13,200 roubles on a personal account, including a 2,000 rouble accumulation part, which may be invested. These savings are liable to indexation with wage and pension rises, though the point does not concern the investible sum.
Thus, a person whose account has no investment part will be entitled to bigger pension rises than the others.
Revenues on the investments of men and women currently older than 37 will not shrink, reassured the minister.
There are another two weeks to streamline draft federal legislative amendments and supplements related to pension insurance rises, which the Cabinet debated today.
Today's Russian pension makes an approximate 30% of the wage, as against a global threshold 40%.
