The Russian Pension Fund has credited 3 billion rubles to accounts of Russians who made voluntary pension contributions last year. This is the state investment in the pension savings co-funding program. Participants in the program can contribute from 2,000 to 12,000 rubles per year to form their pension savings, and receive the same amount from the government. In all, 3.4 billion rubles were paid as voluntary contributions last year, and the overall pension savings reached 6.4 billion rubles, including contributions from the government.
The co-funding sum differs from contributions of program participants, considering that some payments were either smaller than 2,000 rubles or larger than 12,000 rubles, and the government does not co-fund contributions made outside of that range.
An average contribution of a program participant grew to 10,400 rubles over the year (compared to 9,700 rubles in 2019) and came closer to the maximum sum co-funded by the government consistent with program terms.
Besides contributions from program participants and the government, employers also made contributions for their workers – program participants. Contributions paid by employers amounted to 57.6 million rubles.
Together with the new contributions, the overall savings made through the program reached 68.6 billion rubles, while the overall government co-funding amounted to 66.3 billion rubles. Slightly more than 1 billion rubles were contributed by employers. To date, program participants have about 136 billion rubles total on their accounts. The savings are even larger, considering that all contributions are handed over to management companies and are subject to annual investment until the moment of retirement.
Nowadays, 34,700 pensioners are receiving monthly payments under the co-funding program. An average bonus to their monthly pension stands at 1,900 rubles. The sum is annually growing with new contributions if a program participant continues to make them, as well as thanks to the investment of savings.
The formation of pension savings under the program can be monitored through the account on the Pension Fund website or on the Public Services portal or with balance statements provided by PFR client services and multifunctional public service centers.
Pension savings are also paid to survivors. Whenever a program participant dies, the funds are assigned to the heir chosen by the participant or designated by law. They receive the entire sum of the pension savings or the remaining funds.