Central Bank of the Russian Federation

10/12/2021 | Press release | Distributed by Public on 10/12/2021 18:11

Bank of Russia's leadership meets representatives of non-governmental pension funds

The meeting agenda included prospects for higher participation of citizens in non-governmental pension programmes. In particular, the Bank of Russia supported NAPF's proposal to authorise citizens to top up their accounts with non-governmental pension providers from pension savings in the mandatory pension insurance scheme. Thanks to this arrangement, people will be more actively investing in the funded component of their pensions under non-governmental pension programmes.

The Bank of Russia also supported the funds' initiative to authorise spending of pension funds transferred from the mandatory pension insurance scheme to non-governmental pension programmes in exceptional circumstances, e.g. on expensive medical treatment.

The meeting participants confirmed the need for a guarantee scheme to cover funds in non-governmental pension programmes. The relevant draft law is currently with the State Duma.

Also, the participants considered the issue of pension funds selling financial and non-financial products of their partners (insurance, medical services etc.), acting as agents. The Bank of Russia's approach here is based on the principle of regulation by business activity. This future line of business should be regulated subject to volumes and risks.

A feasibility study will be undertaken for pension funds to be licensed for trust management. This arrangement would enable them to handle a similar product -- long-term investment accounts (the so-called IIA-3). The Bank of Russia supports their launch.

Preview photo: Irina Boldina / Shutterstock / Fotodom