Corporate (Occupational) Pension Schemes

Voluntary insurance

• Employees, including state civil servants, based on collective agreement and corporate pension schemes. 

General finances

• Fully funded schemes financed by contribution payments and capital revenues.

Contribution payments

• Contributions can be paid by employer or shared between employee and employer.

State support & incentivising strategies

• Contribution payments are not tax-deductible.

• Different types of pension plans can be offered by employer or private pension funds.
• The Ministry of Finance of the Russian Federation controls and oversees the formation and investment of pension savings.

• Conditions are regulated in pension regulations at company or collective level.

Pension payments

• Mostly one-time lump sum payment or monthly payments (as specified in collective agreements).
• Corporate pension agreement can provide the right for lump sum withdraw of the accumulated capital after 3 to 5 years.

Taxation and social security contributions on pension payments

• Pension payments are subject to income tax but not subject to social security contributions.