Topilin commented on the idea of a progressive scale of contributions to the Pension Fund

© RIA Novosti / Alexander Krauledat in motobanquistas pension. Archival photoTopilin commented on the idea of a progressive scale of contributions to the Pension Fund© RIA Novosti / Alexander Krajevima the image Bank

The introduction of a progressive scale of contributions to the Pension Fund is not considered, as this step will be followed by additional pension rights, said the Minister of labour and social protection Maxim Topilin on Tuesday during the hearings in the state Duma.

During the discussion there were proposals from members as a possible alternative to raising the retirement age to introduce a progressive scale of insurance contributions to FIU. «A progressive scale of contributions to the Pension Fund does not just happen, this is followed by supplementary pension rights of those who have high wages,» — said Topilin, commenting on the statements of the participants of the hearings.

The state Duma on July 19 adopted in first reading a government bill on changes in pension legislation, he suggests raising the age of retirement to 65 years for men and 63 years for women. The change is expected to make phased from 2019. The house approved the basic provisions of the document, from now until September 24, it will collect amendments, which will then be a vote in the second and third readings and consideration in the Federation Council.

Also Topilin has commented on the proposal to allow the beginning of the payment of the funded part of the pension from the current pension age.

«There are proposals to give the opportunity to receive the funded pension in the current age. But when it comes to such terms as unfreezing the retirement savings system, I would like to draw attention to the fact that this means that the budget will also need to allocate more than the nearly $ 500 billion per year of additional funding. You just have to remember it», — said Topilin.

«These are huge funds that are not allocated in the budget», — said the Minister. However, he noted that the prospects have with a voluntary funded system.

Now the standard age of retirement in Russia is 60 and 55 years for men and women respectively. Prescribed by law the retirement age established in the 1930-ies. The question of its increase has been discussed for quite some time. The reason is growing life expectancy and the inability to provide a decent pension in circumstances when the number of employees in the country decreases, while the number of pensioners, by contrast, is growing. Today, in most countries the retirement age is 60-65 years.Topilin commented on the idea of a progressive scale of contributions to the Pension Fund© Integrationalist retirement in different countries

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