Vladimir Putin signed package of laws guaranteeing voluntary pension savings

Vladimir Putin signed a package of laws on creating a system to guarantee the rights of participants in voluntary pension programs from January 1, 2023. This will be an insurance system in case of bankruptcy of non-state pension funds (NPF) or deprivation of its license.

Compensation will be paid from the Pension Reserve Guarantee Fund, which will be replenished from NPF contributions and many other sources.

For the first time in the Russian market, a system is being created to guarantee the rights of participants for an investment product - pension plans. With its adoption, for the first time, an instrument for long-term savings, protected from the risks of loss, becomes available to citizens. Previously, only short-term savings on bank deposits and funds formed within compulsory pension insurance were guaranteed.

The limit for the reimbursement of accumulated funds to an NPF client is set at the level of 1.4 million rubles at the funded stage and at the stage of paying a non-state pension - within two sizes of social assistance. In the new system, contributions to voluntary pension programs will be reimbursed and the investment income received by the fund. Considering that the investment horizon of pension funds is long-term, the accumulated investment income is significant, and guarantees of its safety are essential. Also, the guarantee conditions apply not only to customers but also to their successors.

Based on the Deposit Insurance Agency, the primary document provides for the creation of a system for guaranteeing the rights of participants in non-state pension funds in non-state pension provision. The system is being created by analogy with deposit insurance systems and guarantees the rights insured in compulsory pension insurance. It is designed to protect the rights of citizens who, following the pension agreement, must be paid or are paid a non-state pension.

Author: Azat Gizzatullin