Russia changes pension law for voluntary savings
RUSSIA - The Russian government has implemented a new law introducing subsidies for voluntary pension savings which guarantee to match state contributions.
The Kremlin announced Russian president Dmitry Medvedev had signed a bill last year to increase pension and social security, with changes to the pension legislation and tax laws for the new savings programme on 1 January this year.
The law had been phased in with provisions taking effect in October last year.
Professional services firm Towers Perrin commented in its most recent global benefit and compensation update the changes see contributions by the state financed by the National Prosperity Fund, created in February last year as a division from Russia's oil fund.
Individuals who join the programme and begin saving before 1 October 2012 will receive matching state contributions, which will run for 10 years, from the prosperity fund.
Contributions, which can be made directly or through the employer, are paid into the state pension fund, but can be transferred.
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