Analysis of new financing opportunities for Russian pension insurance system

Finogenova Yulia Y
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Finogenova Yulia Y: Plekhanov Russian University of Economics

European journal of economics and management sciences, 2017, issue 1, 47-53

Abstract: The revision of socio-economic development’s forecast of Russia for the year 2016 leads to make the adjustments of the Pension Fund of Russia (PFR)’s budget size. The main reasons associated with a fall in GDP, the reduction of which in 2015 was 3.7%, and the declining of the employees’ wage funds on which were charged the pension contributions. Thus, in 2016 the budget of the PFR for compulsory pension insurance benefits payments was formed with a deficit of 810,5 billion RUB. The possible sources of funding this deficit are: state budgetary transfers, encouraging later retirement and, potentially, use the assets of National Welfare Fund. The purpose of this article is to analyze the possibility of PFR’s deficit financing due to: (1) the involvement of employees individual contributions (up to 2% of their income) and (2) by eliminating restrictions on the maximum size of the accruals for pension contributions of relatively highly paid groups of citizens. The main conclusions will be done regarding the possible size of PFR’s deficit reduction and they will based on the results of the additional pension insurance contributions amounts’ modelling.

Keywords: THE DEFICIT OF PENSION FUND OF RUSSIA; INCREASING THE SIZE OF PENSION ACCRUALS; MANDATORY EMPLOYEES' CONTRIBUTIONS INTO PUBLIC PENSION SYSTEM; FINANCIAL STABILITY OF PENSION FUND OF RUSSIA (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:scn:032479:16999909

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