ING launches new pension fund in Russia
RUSSIA- ING has announced the launch of its Non-State Pension Fund ING in Russia, a voluntary pension fund for corporate clients. ING maintains it is the country’s first non-state pension scheme.
The fund, which starts with immediate effect, is modelled on similar ING funds in western markets and will focus on providing tailor made pension solutions for employees of both local and international companies.
It will offer corporate clients defined contribution schemes and individual employee pension accounts. ING says this will be offered through dedicated pension consultants, ING Bank and third party brokers.
“We are very pleased to be able to offer this new product range to our clients in Russia. Given the substantial legal and tax reforms in Russia, we now see considerable demand for novel products that facilitate the relationship between employers and employees,” says Jan Nijssen, ING’s chairman for the central European region.
“Pension funds will provide structural support to the Russian economy. They will mobilise domestic savings, support the local capital market and will make Russia a more attractive place to invest,” he says.
Recent pension reform in Russia and the CIS could open doors to those countries for foreign fund managers. Russia has been tackling the issue of non-state pension funds reform for 10 years and the market set looks to grow. In 1997 around 2 million Russians were contributing to occupational schemes – a figure that has doubled in five years.
At a recent conference in London Evgeny Yakushev, deputy chairman at the Electric Power Industry pension fund, said: “Russia could have up to e7bn in occupational pension funds by 2005, and in terms of third pillar schemes, Russia could also have as much as e3bn in voluntary schemes by 2005. This will provide foreign fund managers and advisors with excellent opportunities.”