In 2016, 13.8 per cent of the population in the Russian Federation was over 65 years of age and by 2050 this group will represent 36 per cent of the population. In 2002 the Government of the Russian Federation adopted a system of mandatory pension insurance in order to promote income security within the context of demographic ageing. The Pension Fund of the Russian Federation (PFRF) is responsible for the administration of the pension insurance system and operates eight federal offices, 84 territorial branches and 2,460 regional administrations to effectively deliver services to the public.
The PFRF administers three types of pensions; an obligatory pension insurance, a state pension support programme and a non-state pension insurance. Under the PFRF, a system of Labour Pensions provide coverage for women over 55 years of age and men over 60 years of age through the Old Age Insurance Pension, while other groups are covered under a Disability Insurance Pension and a Loss of Breadwinner Insurance Pension. The PFRF can also be claimed by those retired abroad. In 2017, over 270,000 Russian citizens residing outside Russia collected a monthly pension. In addition to the PFRF the State Pension Security (SPS) provides a pension for those not covered under other pensions, with priority access for women over 50 years of age and men over 55 years of age who belong to indigenous groups. This pension is also open to all women over the age of 60 and men over the age of 65 who do not have access to other pension schemes. The SPS provides an average of RUB 4,731, or USD 144, per month and reached approximately 50 million claimants in 2009. Other schemes under the system of Labour Pensions covers an additional 38 million.
The Russian Federation’s pension system has undergone major structural changes in recent years, moving from one publicly managed system to a multi-pillar pension system aimed at achieving more targeted coverage. While excellent progress has been made, some challenges still remain in extending full benefits to the informal sector and migrant workers. Nonetheless, investments in income security, such as the Russian Federation’s pension system, demonstrate strong political will and are essential steps toward creating a social protection floor to ensure that all in need have access to basic income security.
Further Reading:
Heinz Rudolph and Peter Holtzer (2010). Challenges of the Mandatory Funded Pension System in the Russian Federation. World Bank (WPS5514) Accessed from http://siteresources.worldbank.org/FINANCIALSECTOR/Resources/WPS5514.pdf on December 2016.