UPDATE: Russian Finance Ministry drafts new pension savings system
(Adds comment in paragraph 3)
MOSCOW, Sep 9 (PRIME) -- The Russian Finance Ministry has produced a voluntary pension savings draft called Guaranteed Pension Product and has sent it to the Labor Ministry for approval, the ministry said in a statement on September 6.
“The key goal of this draft law is creation of a state system of guaranteeing security of voluntary pension savings, creation of incentives for both independent savings by employees and for development of corporate pension programs,” the statement read.
State Pension Fund CEO Anton Drozdov told PRIME that the fund supports the initiative as it will expand people’s pension rights.
An earlier pension savings mechanism was called Individual Pension Capital and was to be held in private pension funds. In August 2019, Deputy Finance Minister Alexei Moiseyev said that the model was updated and would be presented under a new name.