Kudrin announced the creation of a working group on pension reform

Chairman of the Board of the Foundation Center for strategic research, Deputy Chairman of the Economic Council under the President of the Russian Federation Alexey Kudrin and Deputy Prime Minister Olga Golodets (left to right) during the panel session “Creative industries. Role in improving the investment climate” in the framework of XX St Petersburg international economic forum

The head of the Center for strategic research (CSR) Alexei Kudrin will work on pension reform, together with the social block of the government. In government and out of it now a lot of “forks” on the issue of pension reform, Kudrin said in an interview with RBC at the St. Petersburg international economic forum. “We agreed with Olga Golodets to establish a joint working group on the calculation of all of these strategies and forks in the road”, — said the head of CSR.

“Together we will sit and discuss all the risks, including economic, financial, political and social. Together we will calculate them on the same methodological basis, so that we have comparable data,” — said Kudrin. In his opinion, the necessity of changes in the pension system dictated by the difficult demographic situation in the country — the rapid growth in the number of pensioners and reduce the number of employees. “These scissors have led to the fact that the pension is not indexed fully in line with inflation. Sorry, I warned that this situation will only increase. Today we can already see its first serious problems,” — said Kudrin.

Earlier Alexey Kudrin named the pension system one of the most important structural problems in Russia: the imbalance of the Pension Fund leads to an annual need for significant transfers from the budget and pension savings frozen for three consecutive years. To solve the problem, according to Kudrin, by raising the retirement age, revision of pension and the order of calculating pensions. Kudrin also in favour of retaining the mandatory funded part of the pension.

In early April the Ministry of labor, Ministry of economic development and the Ministry of Finance submitted to the government its proposals for the reform of the pension system, which mainly relate to distribution of the pension. The Ministry of Finance, in particular, proposes to raise the retirement age to 65 years for men and women, to refuse payment of pensions to working pensioners, to increase the requirements for length of service for early retirement to teachers and doctors, to reduce the annual indexation of pensions.

The version of pension reform Ministry of labor involves an increase in tariffs of insurance contributions, increase the minimum seniority for pension insurance, loss of teachers, doctors and artists the right to early retirement and the abolition of the mandatory funded system. Finally, the Ministry of economic development proposes to reform the distribution part of the pension, reducing the transfer payments and indexing, and storage to return and leave mandatory