Vladimir Putin extended the freeze of the cumulative part of pension in Russia for another year

The President of the Russian Federation Vladimir Putin has signed a law that extends freezing the funded part of pensions Russians for another year.

Thus, as reports “RIA Novosti”, the Pension Fund should take account of contributions for compulsory pension insurance, which will fully cover the insurance part of pension.

As suggested by the document, funded part of the pension is frozen until 2021. This measure applies only to those Russians. Born late 1967 and voluntarily wrote a statement to the Pension Fund regarding the formation of the cumulative part of the pension.

The law, signed by Putin, already published on the official portal of legal information and shall come into force from 1 January 2019.

Recall that in 2014 the funded part of pensions (six percent of salary) goes to pension payments to current retirees.

Until 2014, the Russians, who decided to deduct six percent to the FIU, are able to dispose of these assets. For example, you can send these tools to form their own pension savings, or to transfer to the insurance part of their pension, thereby increasing the points for calculation of the insurance pension.

Labor Minister Maxim Topilin said that the freezing of the cumulative part of the pension saved the Russian budget of about two trillion rubles.

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