On Equilibrium of the Financial Flows within the System of Compulsory Pension Insurance in the Russian Federation
On Equilibrium of the Financial Flows within the System of Compulsory Pension Insurance in the Russian Federation

Summary/Abstract: The widening imbalances in the financial flows of the Russian State Pension Fund was caused by such a factors as: narrowing of the base for compulsory insurance premium collection due to the economic problems, dynamically changing the structure of the labor market, rising labor migration within the country and overseas, the steady aging of the population. This article reviews the suggestions on elaborating the policy of compulsory pension insurance rates in the Russian Federation aimed at enhancing the equilibrium of financial flows within the system and providing exercise of pension rights without attracting the lacking funds from the federal budget. Authors suggested that the problem of financial stability of pension system in the short run has to be solved only by changing the pension insurance tariff policy, i.e. due to the growth in pension system’s revenues. We believe that the current government proposals, aimed at settlement of the mandatory pension insurance system’s expenditure (i.e. by decreasing the size of pensions and their indexation) lead to falling of pension insurance coverage.

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