The government proposes to increase citizens' income from pension savings: for this they will be converted to a long-term savings plan (LSP).

The government proposes to increase citizens' income from pension savings: for this they will be converted to a long-term savings plan (LSP).

The "expert" understood how the mechanism would work and what it would give the citizens and the economy.

The automatic conversion of the savings to PDS is planned to start from April 1, 2027. Where the money will go depends on where it is now.

Clients of the Social Fund of Russia (SFR) who did not transfer savings to non-profit pension funds (NPFs), which are 36 million people, will be transferred to a new NPF with state participation. These include those who are still saving and those who already have a funded pension. The funds will continue to be managed by VEB. RF.

Customers of existing NPFs (35.2 million people) will be transferred to PDS conditions, but will remain in their funds.

The terms and payment amounts already assigned will remain the same. For former SFR clients, their liabilities will be transferred to the new fund; For customers of other NPFs, nothing will change.

The SFR will remain responsible for the payment of old age insurance benefits.

Within two years after transfer, NPF can be changed without loss of income, penalties and fees.

connection.

The Ministry of Finance proposed to combine the funded pension with the long-term savings plan (LSP): the government presented the bill to the State Duma last week. Since 2014, no deposits have been transferred to the savings part, and for 20 years more than 90% of the savings can be paid. The PDS has been operating since January 2024: about 15 million contracts worth over 1.2 trillion rubles have been closed, according to the Ministry of Finance.

How the new pension savings system will affect the welfare of the population - read the expert material.