Integrated Social Fund based on Pension Fund and Social Insurance Fund was formed in Russia

Tatyana Aksyutina

Russian President Vladimir Putin signed a decree on the creation in the country of the Pension and Social Insurance Fund, abbreviated as the Social Fund (SFR). It was formed by merging the Pension Fund of Russia and the Social Insurance Fund.

The fund will begin operations on January 1, 2023. After the funds are merged, citizens will continue to receive all due payments on time, and for consultations, they will be able to contact the same addresses, but now through single client service. In 2023, uniform insurance premium rates for mandatory pension, and social and medical insurance will be established, which will increase the maximum amount of payments for insurance in case of temporary disability and in connection with maternity. According to the calculations of the Ministry of Labor, by 2025 their maximum size will increase by 1.5 times.

The funds that will be freed up after optimizing the cost of maintaining the staff and property due to the pooling of funds will be used to increase pensions.

Author: Roman Yakimchuk

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